Recently, in Decree 123/2020/ND-CP, it is clearly regulated that the use of electronic invoices is not mandatory from November 01, 2020 and deferred until July 01, 2022. However, in cases where the tax authorities require the implementation of electronic invoices, business establishments shall comply with the guidance of the tax authorities in Vietnam.
Article table of contents
Decree 123: Mandatory Cases for Implementing Electronic Invoices Before July 1, 2022 in Vietnam(Illustration)
In Clause 3, Article 59 Decree 123/2020/ND-CP stipulates the repeal of Clauses 2 and 4, Article 35 of Decree 119/2018/ND-CP dated September 12, 2018, which regulate electronic invoices effective from November 1, 2020. Therefore, from November 1, 2020, the following two provisions will be repealed:
- The implementation of electronic invoices, electronic invoices with tax authority codes for businesses, economic organizations, other organizations, households, and individual business entities must be completed by no later than November 1, 2020, in accordance with Decree 119/2018/ND-CP.
- From November 1, 2020, Decree 51/2010/ND-CP and Decree 04/2014/ND-CP will cease to be effective.
Additionally, Clause 1, Article 60 of Decree 123/2020/ND-CP stipulates that businesses and economic organizations that have announced the issuance of pre-printed invoices, self-printed invoices, or electronic invoices without tax authority codes or have registered to use electronic invoices with tax authority codes and have purchased invoices from the tax authority before October 19, 2020, may continue to use these invoices until June 30, 2022, and comply with invoice procedures as per Decree 51/2010/ND-CP.
Thus, according to the above regulations, businesses, economic organizations, other organizations, households, and individual business entities are not required to complete the implementation of electronic invoices or electronic invoices with tax authority codes from November 1, 2020, but the mandatory application of electronic invoices will be postponed to July 1, 2022. Meanwhile, Decree 51/2010/ND-CP and Decree 04/2014/ND-CP will remain effective until June 30, 2022.
However, Article 60 of Decree 123/2020/ND-CP also regulates that from October 19, 2020, to June 30, 2022, businesses, economic organizations, other organizations, households, and individual business entities are required to apply electronic invoices upon the request of the tax authority. To be specific, the provision states:
Article 60. Transitional Handling
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From the date this Decree is issued until June 30, 2022, if the tax authority notifies a business establishment to switch to apply electronic invoices according to the provisions of this Decree or Decree 119/2016/ND-CP dated September 12, 2018, if the business establishment does not meet the conditions for information technology infrastructure and continues to use conventional invoices as mentioned above, the business establishment must send their invoice data to the tax authority using Form No. 03/DL-HDDT in Appendix IA issued with this Decree along with the VAT return. The tax authority will compile the invoice data of the business establishment into the invoice database and publish it on the General Department of Taxation's electronic information portal for invoice data lookup purposes.
2. For newly established business establishments during the period from the date this Decree is issued until June 30, 2022, if notified by the tax authority to apply electronic invoices as per this Decree, the business establishment must follow the guidance of the tax authority. If the conditions for information technology infrastructure are not met and conventional invoices are continued based on Decrees 51/2010/ND-CP dated May 14, 2010, and 04/2014/ND-CP dated January 17, 2014, of the Government of Vietnam on the sale of goods and services, they should follow the same process as business establishments mentioned in Clause 1 of this Article."
Therefore, according to the above regulations, if from October 19, 2020, to June 30, 2022, the tax authority notifies a business establishment to implement electronic invoices before July 1, 2022, the business establishment must comply with the tax authority's guidance. At the same time, if the business establishment does not meet information technology infrastructure conditions and continues to use conventional invoices as per Decree 51/2010/ND-CP and Decree 04/2014/ND-CP, the business establishment must send invoice data to the tax authority using Form No. 03/DL-HDDT in Appendix IA issued with this Decree along with the VAT return.
It can be seen that businesses, economic organizations, other organizations, households, and individual business entities are required to apply electronic invoices from July 1, 2022, unless the tax authority requests earlier compliance. If the tax authority notifies a business establishment to apply electronic invoices before July 1, 2022, and if the business establishment meets the IT infrastructure conditions, they must implement electronic invoices before July 1, 2022.
Ty Na
- Key word:
- electronic invoice
- Vietnam
