Vietnam: Entities subject to use of tax authority-ordered printed invoices

According to Article 23 of the Decree No. 123/2020/NĐ-CP of Vietnam’s Government, departments of Taxation in provinces and centrally-affiliated cities may order the printing of invoices resold to the following entities:

First, enterprises, business entities, and household or individual businesses mentioned in Clause 1 Article 14 hereof if they do not have electronic transactions with tax authorities, IT infrastructure, accounting software systems or e-invoicing software functioning as the tools of using e-invoices and transmitting e-invoice data to buyers and tax authorities.

Note: Enterprises, business entities, and household or individual businesses may buy invoices from tax authorities for a period of up to 12 months while tax authorities must have solutions for gradually converting to the use of e-invoices. Before using e-invoices, business entities, and household or individual businesses must apply for use of authenticated or unauthenticated e-invoices (if eligible) in accordance with the provisions in Article 15 hereof.

Second, enterprises, business entities, and household or individual businesses during the period of failure of the tax authority’s authentication code issuing system as prescribed in Clause 2 Article 20 hereof.

Moreover, Article 25 of the Decree No. 123/2020/NĐ-CP of Vietnam’s Government also stipulates the handling of unused invoices purchased from tax authorities as follows:

- Any enterprise, business entity, household or individual business whose termination of TIN has been approved by the tax authority shall stop using invoices.

- The supervisory tax authority shall notify the expiration of unused invoices of enterprises, business entities, household or individual businesses that no longer operate at registered locations or have deliberately suspended their business.

- Before using e-invoices, enterprises, business entities, or household or individual businesses must destroy physical invoices purchased from tax authorities in accordance with the provisions in Article 27 hereof.

View more details at the Decree No. 123/2020/NĐ-CP of Vietnam’s Government, effective from July 01, 2022.

Le Vy

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