Invoice types according to Decree 123/2020 in Vietnam

Regarding this issue, LawNet would like to answer as follows:

1.  Invoice types according to Decree 123/2020 in Vietnam

Invoices specified in Decree 123/2020/ND-CP include the following types:

(1)  Value-added tax (VAT) invoice is an invoice which may be used by organizations making VAT declaration by employing the credit-invoice method for the following activities:

- Domestic sale of goods or provision of services;

- Provision of international transport services;

- Export of goods to free trade zones and other cases considered as export of goods;

- Export of goods or provision of services in a foreign market.

Invoice types according to Decree 123/2020 in Vietnam (Internet image)

(2) Sales invoice is an invoice which may be used by the following organizations and individuals:

- Organizations or individuals that declare and calculate VAT by employing direct method for the following activities:

+ Domestic sale of goods or provision of services;

+ Provision of international transport services;

+ Export of goods to free trade zones and other cases considered as export of goods;

+ Export of goods or provision of services in a foreign market.

- Organizations or individuals in free trade zones that sell goods or provide services to the domestic market, sell goods or provide services to other organizations/individuals in free trade zones, or sell goods or provide services to a foreign market. In such cases, invoices must bear the phrase “Dành cho tổ chức, cá nhân trong khu phi thuế quan” ("For organizations/individuals in free trade zones”).

(3) Public property electronic sales invoice is used when selling the following types of property:

- Public property at authorities, organizations or units (including state owned houses);

- Infrastructure property;

- Public property that is managed by enterprises as assigned by the Government, excluding state capital invested in enterprises;

- Property of state-funded projects;

- Property under the established all-people ownership;

- Public property appropriated under decisions issued by competent regulatory authorities or officials;

- Raw materials and supplies obtained from the disposal of public property.

(4) Electronic sales invoice on national reserve goods is used when a state reserves agency or unit sells national reserve goods in accordance with regulations and laws.

(5) Other invoices, including:

- Stamps, tickets and cards in the form and containing contents prescribed herein;

- Air freight receipts; receipts of international transport charges; receipts of banking service charges, except the cases prescribed in Point a of Clause 5 Article 8 of Decree 123/2020/ND-CPwhere a record whose format and contents are made according to international practices and regulations of relevant laws.

(6) Records printed, issued, used and managed in the same manner as invoices, including delivery and internal transfer note, and delivery notes for goods sent to sales agents.

2. 07 cases of suspension of use of e-invoices in Vietnam

According to Article 16 Decree 123/2020/ND-CP, enterprises, business entities, other organizations, household or individual businesses in Vietnam shall suspend their use of authenticated and unauthenticated e-invoices in the following cases:

- 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 prescribed by the law in Vietnam.

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.

Nhu Mai

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