Vietnam: Guiding the handling of issued invoices purchased from tax authorities

According to Article 26 of the Decree No. 123/2020/NĐ-CP of Vietnam’s Government, handling of issued invoices purchased from tax authorities is carried out as follows:

- In case an issued invoice is found erroneous before it is given to a buyer, the seller shall cross out its copies and keep the erroneous invoice.

- If the buyer's name and/or address is wrong but its TIN is correct, two parties shall prepare a correcting record without issuing a correction invoice.

- If the issued invoice has been given to the buyer and is found erroneous but the invoiced goods/services are not yet delivered, or both the buyer and seller do not yet declare tax, the buyer and seller shall make a record of withdrawal of copies of the erroneous invoice. The reasons for withdrawing an invoice must be specified in the record of invoice withdrawal. The seller shall cross out the copies of the erroneous invoice, keep the erroneous invoice and issue a new invoice as prescribed.

- If an issued invoice has been given to the buyer and is found erroneous and the goods/services have been delivered, or both the buyer and seller have completed tax declaration, the seller shall issue a correction invoice. The correction invoice shall specify the corrections (increase/decrease) to the quantity of goods, price, VAT rate and/or VAT amount specified in the invoice No……..reference No…….. Based on the correction invoice, the seller and buyer shall declare corrections to their revenues, input and output VAT. No negative numbers are written on the correction invoice.

Note: The seller and the buyer shall prepare a document specifying the errors as agreed upon between them before the seller issues a correction invoice.

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

Le Vy

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE