On October 19, 2020, the Government of Vietnam issued the Decree No. 123/2020/NĐ-CP prescribing invoices and records. According to this Decree, the official time to apply electronic invoices is from July 01, 2022. Below is the guidance on application for use of e-invoices from July 01, 2022.
Article table of contents
- Vietnam: Guidance on use of invoices according to Decree No. 123/2020/NĐ-CP
- Update: Compulsory use of e-invoices in Vietnam from July 01, 2022
1. Entities of application for use of e-invoices
According to Clause 1 Article 15 of the Decree No. 123/2020/NĐ-CP of Vietnam’s Government, enterprises, business entities, other organizations, household and individual businesses other than the ones suspended from use of e-invoices specified below shall apply for use of e-invoices (including e-invoices for sale of public property or national reserve goods) through e-invoice service providers:
- An enterprise, business entity, other organization, household business or individual business has its TIN invalidated;
- An enterprise, business entity, other organization, household business or individual business does not operate at the registered location as verified and announced by the tax authority;
- An enterprise, business entity, other organization, household business or individual business has sent a notification of business suspension to a competent authority;
- An enterprise, business entity, other organization, household business or individual business is banned from using e-invoices by the tax authority for the purpose of enforcement of payment of tax debts;
- E-invoices are used to sell smuggled goods, banned goods, counterfeits, goods violating intellectual property rights as detected and informed by competent authorities;
- E-invoices are used for short selling of goods or services for fraudulent purposes as detected and informed by competent authorities;
- A business registration authority or competent authority requests an enterprise to suspend operation in a conditional business line after finding that this enterprise does not fully satisfy the business conditions.
Note: If the tax authority, through inspection, discovers that the enterprise is established for the purpose of trade and use of illegal e-invoices or illegal use of e-invoices for tax evasion purposes, the enterprise shall face administrative penalties and be suspended from use of e-invoices according to the decision issued by the tax authority.
2. Application for use of e-invoices from July 01, 2022
According to Article 15 of the Decree No. 123/2020/NĐ-CP of Vietnam’s Government, enterprises, business entities using free-of-charge authenticated e-invoices; enterprises transmitting e-invoice data directly to tax authorities shall apply for use of e-invoices in 01 of the 02 following methods:
Case 1: Submit application via the web portal of the General Department of Taxation
Within 01 working day, an electronic acknowledgement of receipt of application for use of e-invoices, made using the form No. 01/TB-TNDT in Appendix IB enclosed herewith, shall be sent from the web portal of the General Department of Taxation directly to the applicant via its email registered with the tax authority.
Case 2: Submit application via an e-invoice service provider entrusted by the General Department of Taxation to provide free of charge authenticated e-invoices
Within 01 working day, an electronic acknowledgement of receipt of application for use of e-invoices shall be sent from the web portal of the General Department of Taxation to the e-invoice service provider.
Note: In case an enterprise or business entity that registers for direct transmission of e-invoice data to the tax authority has received the notice of approval of use of e-invoices according to form No. 01/TB-DKDT provided in Appendix IB enclosed herewith from the tax authority but does not yet cooperate with the General Department of Taxation to complete IT infrastructure configuration and testing for connection, data transmission and receipt:
- Within 05 working days from receipt of form No. 01/TB-DKDT, it shall complete IT infrastructure conditions and request the General Department of Taxation to make connection. The connection must be made within 10 working days after the General Department of Taxation receives the request.
- If the result of connection, data transmission and receipt testing is satisfactory, the enterprise or business entity shall transmit e-invoice data directly to the tax authority.
- After 05 working days from receipt of form No. 01/TB-DKDT from the tax authority, if the enterprise or business entity fails to request the General Department of Taxation to make connection or the result of connection, data transmission and receipt testing is unsatisfactory, it shall apply for modification of the submitted application for use of e-invoices by using form No. 01/DKTD-HDDT in Appendix IA enclosed herewith, and transmit e-invoice date through the organizations that make connections for receiving, transmitting and storing e-invoice data with tax authorities.
In particular, from the receipt of the notice of approval of use of e-invoices from the tax authority, the relevant enterprise, business entity, other organization, household or individual business shall terminate the use of e-invoices whose issue has been announced, and destroy any unused physical invoices whose issue has been announced.
Enterprise and business entities should note that the mandatory date of using e-invoices will be changed from November 01, 2020 to July 01, 2022. For more details, Customers may view the article: Decree No. 123/2020/NĐ-CP: Not required to use e-invoices from November 01, 2020.
Le Vy
- Key word:
- Decree No. 123/2020/NĐ-CP
- e-invoices
