Recently, the Government of Vietnam issued Decree 123/2020/ND-CP regulating invoices and documents. The official mandatory implementation of electronic invoices is from July 1, 2022. Below is the guidance on the mandatory procedure for canceling physical invoices before November 1, 2022.
Article table of contents
Guidelines for the mandatory procedure for physical invoice cancellation in Vietnam before November 1, 2022 (Illustration)
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Notice of Invoice Cancellation Results
1. Mandatory cancellation of physical invoices in Vietnam by July 1, 2022
According to Clause 3 Article 59 of Decree 123/2020/ND-CP stipulating the annulment of Clauses 2 and 4 of Article 35 Decree 119/2018/ND-CP, specifically abolishing the regulations on the implementation of electronic invoices, electronic invoices with the tax authority's code for enterprises, economic organizations, other organizations, households, and individuals engaged in business no later than November 1, 2020.
Simultaneously, Clause 1 Article 60 of Decree 123/2020/ND-CP also regulates that enterprises and economic organizations that have issued printed invoices, self-printed invoices, or electronic invoices without the tax authority's code or have registered to apply electronic invoices with the tax authority's code, or have purchased invoices from tax authorities before October 19, 2020, are allowed to continue using the current invoices from October 19, 2020, to June 30, 2022.
Thus, by July 1, 2022, enterprises and economic organizations must carry out the procedure for physical invoice cancellation and register for electronic invoices.
2. Guidelines for the procedure for physical invoice cancellation in Vietnam
Clause 3 Article 8 and Clause 3 Article 13 of Circular 68/2019/TT-BTC stipulate the cancellation of unused leftover physical invoices (if any) and the cessation of using notified issued invoices according to the provisions of Decree 51/2010/ND-CP.
To be specific, according to Article 27 Decree 51/2010/ND-CP, guided by Article 29 Circular 39/2014/TT-BTC, the procedure for canceling physical invoices includes the following 04 steps:
Step 1: Establish an Invoice Cancellation Council (except for business households and individuals)
Note: Members of the Invoice Cancellation Council must include representatives of the leadership and the accounting department of the business organization.
Step 2: Create an Inventory List of Invoices to be Canceled
The Inventory List of Invoices to be Canceled must detail:
- Invoice name;- Template number of the invoice;- Invoice symbol;- Quantity of invoices to be canceled (from number… to number… or list each invoice number in detail if the invoice numbers to be canceled are not consecutive);- Cancel physical invoices to switch to electronic invoices.
Step 3: Prepare a Report on Invoice Cancellation
Members of the Invoice Cancellation Council must sign the Report on Invoice Cancellation and take legal responsibility for any errors.
Step 4: Notify the results of invoice cancellation to the tax authority directly managing the business
The notice of invoice cancellation results according to Template 3.11 Appendix 3 issued together with Circular 39/2014/TT-BTC.
Note:
- The notice of invoice cancellation results must include: type, symbol, quantity of invoices canceled from number… to number, reason for cancellation, date and time of cancellation, and method of cancellation;- Quantity: 2 copies (one for internal record-keeping and one for submission to the direct tax management authority);- Submission deadline: no later than 5 days from the date of completing the invoice cancellation procedure;
The above is the complete procedure for canceling physical invoices that enterprises need to know to perform before July 1, 2022.
Le Vy
