Vietnam: When will the suspension of use of e-invoices is required from July 01, 2022?

Specifically, according to Clause 2 Article 3 of the Decree No. 123/2020/NĐ-CP of Vietnam’s Government: “E-invoice means an invoice, with or without the tax authority’s authentication code, in the form of electronic data, issued by the goods seller or service provider by using electronic instruments to record information on the sale of goods or service provision in accordance with regulations of the Law on accounting and the Law on taxation, including the invoices generated by POS cash registers that are digitally connected to tax authorities.”

Enterprises, business entities, other organizations, household or individual businesses shall suspend their use of authenticated and unauthenticated e-invoices in the following cases:

1. An enterprise, business entity, other organization, household business or individual business has its TIN invalidated;

2. 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;

3. An enterprise, business entity, other organization, household business or individual business has sent a notification of business suspension to a competent authority;

4. 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;

5. E-invoices are used to sell smuggled goods, banned goods, counterfeits, goods violating intellectual property rights as detected and informed by competent authorities;

6. E-invoices are used for short selling of goods or services for fraudulent purposes as detected and informed by competent authorities;

7. 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 law.

Suspension of use of e-invoices must follow the procedures as follows:

Step 1: The supervisory tax authority shall send a notification requesting the taxpayer in Point dd, e or g Clause 1 of Article 16 of the Decree No. 123/2020/NĐ-CP to provide explanation or additional documents about its use of e-invoices.

Step 2: The taxpayer must provide such explanation or additional documents within 02 working days from receipt of the notification from the tax authority. Such explanation or additional documents may be provided directly or in writing for the tax authority.

Step 3: The taxpayer shall continue using e-invoices or provide explanation. To be specific:

- If the taxpayer provides adequate and convincing explanation or additional documents as prescribed, it shall continue using e-invoices.

- If the explanation or additional documents provided by the taxpayer is/are not convincing, the tax authority shall continue requesting the taxpayer to provide additional documents. Additional documents must be submitted within 02 working days from receipt of the tax authority’s request.

Step 4: If the taxpayer fails to provide explanation or additional documents within the requested period, the tax authority shall request the taxpayer to suspend its use of authenticated e-invoices or unauthenticated e-invoices, and take further actions as prescribed.

Le Hai

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