Regulations on e-invoice format in Vietnam

Regulations on e-invoice format in Vietnam (Internet image)

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

1. Regulations on e-invoice format in Vietnam

Regulations on e-invoice format according to Article 12 of Decree 123/2020/ND-CP are as follows:

- The e-invoice format is the technical standards for type of data, length of data of information fields serving transmission, storage and display of e-invoices. E-invoices shall be XML (extensible Markup Language) documents, which are meant to share electronic data between IT systems.

- The data of an electronic invoice consists two components: information about the transaction and the digital signature. Authenticated e-invoices shall also contain the data of the tax authority’s code.

- The General Department of Taxation shall develop and announce the format of transaction-related information, digital signatures and tools for display of e-invoices prescribed herein.

- The following requirements must be met when sellers directly transmit data to tax authorities:

+ Connect to the General Department of Taxation via a separate channel or MPLS VPN Layer 3, including 1 main channel and 1 backup channel. Each channel has a minimum bandwidth of 5 Mbps.

+ Use an encrypted Web Service or Message Queue (MQ) for connection.

+ Use Simple Object Access Protocol (SOAP) to compile, transmit and receive data.

- Contents of e-invoices shall be fully and accurately displayed, ensure readers can read them with electronic devices.

2. Regulations on suspension of use of e-invoices in Vietnam

Regulations on suspension of use of e-invoices in Vietnam under Article 16 of Decree 123/2020/ND-CP are as follows:

- Enterprises, business entities, other organizations, household or individual businesses 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 law.

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.

- Procedures for suspension of use of e-invoices:

+ The supervisory tax authority shall send a notification requesting the taxpayer in Point dd, e or g Clause 1 of Article 16 of Decree 123/2020/ND-CP to provide explanation or additional documents about its use of e-invoices.

+ 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.

+ 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.

+ 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.

- Enterprises, business entities, other organizations, household or individual businesses mentioned in Clause 1 of Article 16 of Decree 123/2020/ND-CP are allowed to continue using e-invoices after informing tax authorities of business resumption, having their TIN reactivated by tax authorities, or obtaining decisions on cancellation of suspension of e-invoices from tax authorities, or upon notification by competent authorities.

- During the business suspension period, if enterprises, business entities, other organizations, household or individual businesses whose business is suspended need to issue e-invoices to buyers to execute contracts which have already been signed before the date of business suspension, they shall use e-invoices which are separately provided according to the provisions in Clause 2 Article 13 of Decree 123/2020/ND-CP.

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