Cases of not required to pay service charges for the use of authenticated e-invoices in Vietnam

Cases of not required to pay service charges for the use of authenticated e-invoices in Vietnam (Internet image)

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

1. Cases of not required to pay service charges for the use of authenticated e-invoices in Vietnam

According to Clause 1, Article 14 of Decree 123/2020/ND-CP,  the following entities are not required to pay service charges for a period of 12 months from the date of commencement of the use of authenticated e-invoices:

- Small- and medium-sized enterprises, cooperatives, household and individual businesses that operate in disadvantaged areas or extremely disadvantaged areas.

Disadvantaged areas or extremely disadvantaged areas are defined in the List of areas eligible for investment incentives enclosed with the Decree No. 118/2015/ND-CP and its amending or superseding documents (if any).

- Other small- and medium-sized enterprises which are defined according to the requests of the provincial People’s Committees submitted to the Ministry of Finance, except enterprises operating in economic zones, industrial parks or hi-tech zones.

The General Department of Taxation shall directly provide or entrust e-invoice service providers to provide free of charge authenticated e-invoices for the abovementioned entities.

In addition, according to Clause 2, Article 14 of Decree 123/2020/ND-CP, when using authenticated e-invoices or unauthenticated e-invoices provided by e-invoice service providers, enterprises, business entities, household and individual businesses other than those specified in Clause 1 of Article 14 of Decree 123/2020/ND-CP shall pay service charges under terms and provisions of the signed contracts.

2. Regulations on issuance of authenticated e-invoices in Vietnam

Regulations on issuance of authenticated e-invoices in Vietnam according to Article 17 of Decree 123/2020/ND-CP are as follows:

- Creation of authenticated e-invoices

+ If enterprises, business entities, other organizations, household or individual businesses prescribed in Clause 1 Article 14 of Decree 123/2020/ND-CP wish to access the web portal of the General Department of Taxation to create invoices, they can use their log-in accounts granted after they complete their registration, following the steps below:

++ Create sales and service invoices.

++ Append digital signatures to created invoices and send such invoices to the tax authority for its issue of authentication codes.

+ In case of use of authenticated e-invoices through e-invoice service providers, enterprises, business entities, other organizations, household or individual businesses shall access the websites of these e-invoice service providers or use their e-invoice software to:

++ Create sales and service invoices.

++ Append digital signatures to created invoices and send such invoices through e-invoice service providers to the tax authority for its issue of authentication codes.

- Issuance of authentication codes to e-invoices

+ E-invoices granted authentication codes by tax authorities must meet the following requirements:

++ They must bear adequate contents as prescribed in Article 10 of Decree 123/2020/ND-CP.

++ They must follow the format prescribed in Article 12 of Decree 123/2020/ND-CP.

++ The information shown on the e-invoices are the same as the registration information as prescribed in Article 15 of Decree 123/2020/ND-CP.

++ These e-invoice issuers are not suspended from use of authenticated e-invoices according to the provisions of Clause 1 Article 16 of Decree 123/2020/ND-CP.

+The authentication code issuing system of the General Department of Taxation automatically issues authentication codes and informs them to senders.

- Enterprises, business entities, other organizations, household or individual businesses that sell goods or provide services shall be responsible for sending authenticated e-invoices to buyers.

E-invoice sending and receiving methods shall be subject to the agreement between the buyer and the seller, and in consistent with regulations of the Law on electronic transactions.

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