Notable regulations on authorization to issue e-invoices in Vietnam

Notable regulations on authorization to issue e-invoices in Vietnam (Internet image)

Regarding this issue, LawNet answers as follows:

1. Authorization rules for issuing e-invoices in Vietnam

Authorization rules for authorizing electronic invoices according to Clause 1, Article 3 of Circular 78/2021/TT-BTC are as follows:

- Good sellers or service providers that are enterprises, business entities or other organizations are allowed to authorize third parties that are related parties of the sellers, eligible to use e-invoices, and are not suspended from use of e-invoices as prescribed in Article 16 of the Decree 123/2020/ND-CP to issue e-invoices for their sale of goods or provision of services. Related parties are defined in the Law on Tax Administration;

- The authorization must be made in writing (either contract or agreement) between the authorizing party and the authorized party;

- Such authorization must be notified to the tax authority when applying for use of e-invoices;

- The e-invoice issued by the authorized party is an e-invoice with or without the tax authority’s identification code but must bear the name, address and TIN of the authorizing party and those of the authorized party;

- The authorizing party and the authorized party shall notify such authorization to issue invoices to buyers of goods/services by publishing information thereof on their websites or on mass media.

When the authorization expires or is terminated before its expiration date as agreed upon between two parties, the notices of such authorization published on the websites of the authorizing party and the authorized party or on mass media must be canceled;

- In case invoices to be made out under authorization are e-invoices without the tax authority’s identification code (hereinafter referred to as “unauthenticated invoices”), the authorizing party shall transmit e-invoice data to their supervisory tax authority directly or through an e-invoice service provider;

- The authorized party shall issue e-invoices with authorization according to actual demands, agreements made with the authorizing party, and the rules set out in Clause 1 of Article 3 of Circular 78/2021/TT-BTC.

2. Regulations on authorization contract or agreement on issuing e-invoices in Vietnam

Regulations on authorization contract or agreement on issuing e-invoices in Vietnam according to Clause 2, Article 3 of Circular 78/2021/TT-BTC are as follows:

- The authorization contract or agreement must include adequate details about the authorizing party and the authorized party (including name, address, TIN and digital certificate), information about the e-invoice issued with authorization (type, form number and reference number of the invoice); purposes of authorization; duration of authorization; methods of payment for invoices issued with authorization (including the responsibility to make payment for the invoiced goods/services);

- The authorizing party and the authorized party shall retain the authorization contract or agreement, and present them at the request of competent authorities.

3. Notification of authorization to issue e-invoices to tax authorities in Vietnam

According to Clause 3, Article 3 of Circular 78/2021/TT-BTC, notification of authorization to issue e-invoices to tax authorities

- The authorization is considered as a change in information provided in the application for use of e-invoices as prescribed in Article 15 of Decree 123/2020/ND-CP. The notification of the authorization to issue e-invoices, including early termination of such authorization, to tax authorities shall be made using Form No. 01DKTD/HDDT enclosed with the Decree 123/2020/ND-CP;

- Details of the authorizing party and the authorized party in the Form No. 01DKTD/HDDT enclosed with the Decree 123/2020/ND-CP shall be provided as follows:

= In Part 5 “List of digital certificates used”, adequate information about the used digital certificates of both authorizing party and authorized party shall be provided;

= In Column 5 Part 6 “Registration of authorization to issue invoices”, name and TIN of the authorizing party shall be provided.

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