New Regulations On Prescribing Electronic Invoices

E-Invoices - New regulations on prescribing Electronic Invoices

New Regulations On Prescribing Electronic Invoices

(Last Updated On: August 11, 2020)

New regulations on prescribing electronic invoices (e-invoices) for sale of goods and provision of services subjects of enterprises established and operated under the provisions of the Law on Enterprises, the Law on Credit Institutions, the Law on Insurance Business, the Law on Securities, the Law on Petroleum, and other legislative documents, in the form of a Joint Stock Company, Limited Liability Company, Partnership Business or Sole Proprietorship Business.

E-Invoices - New regulations on prescribing Electronic Invoices

E-Invoices – New regulations on prescribing Electronic Invoices

ACCORDING TO DECREE

No. 119/2018/ND-CP on September 12, 2018

1. Subjects of application electronic invoices

Organizations, enterprises and individuals selling goods and providing services that are covered by this Decree shall include the followings:

  • Enterprises established and operated under the provisions of the Law on Enterprises, the Law on Credit Institutions, the Law on Insurance Business, the Law on Securities, the Law on Petroleum, and other legislative documents, in the form of a Joint Stock Company, Limited Liability Company, Partnership Business or Sole Proprietorship Business.
  • Organizations established and operated under the Law on Cooperatives.
  • Business households or individuals.

2. Entry into force

  • This Decree shall enter into force on November 1, 2018.
  • The implementation of e-invoices and e-invoices with tax authorities’ identification codes shall be completed by November 1, 2020.

3. Transition period

  • Enterprises that have informed the issue of e-invoices without tax authorities’ identification codes or have registered the use of e-invoices with tax authorities’ identification codes before 01/11/2018 shall be allowed to continue to use existing e-invoices from its effective date.
  • Enterprises have informed the issue of externally printed or internally printed invoices or have purchased invoices issued by the tax authority for use before 01/11/2018 shall be entitled to continue to use these invoices until end of October 31, 2020.
  • During the period from November 1, 2018 to October 31, 2020, after receipt of the tax authority’s notification of use of e-invoices with tax authorities’ identification codes, if the informed business fails to meet information technology infrastructure requirements and continue to use the aforesaid invoices, it must send its invoice data to the tax.
  • With respect to businesses newly established during the period from November 1, 2018 to October 31, 2020, if the tax authority informs businesses of implementing e-invoices in accordance with this Decree, these businesses must follow the tax authority’s instructions. Except for any business continues to use invoices due to its failure to meet information technology infrastructure requirements as prescribed.

4. E-invoice types

E-invoices shall be classified into the following types:

  1. Value-added tax e-invoice which is an invoice that may be used by providers of goods or services for their value-added tax declaration made by employing the credit method. In this case, this type of e-invoice shall include those invoices created by POS cash registers with network connections for transfer of electronic data to tax authorities.
  2. Sales e-invoice which is an invoice that may be used by providers of goods or services for their value-added tax declaration made by employing the direct method. In this case, this type of e-invoice shall include those invoices created by POS cash registers with network connections for transfer of electronic data to tax authorities.
  3. Other e-invoices, including electronic stamps, electronic tickets, electronic cards, electronic receipts, electronic goods dispatch and consignment note, or electronic evidencing documents.

5. E-invoicing time

  • Time of issue of an e-invoice for sale of goods is the time of transfer of the right to own or use goods to the buyer, irrespective of whether the payment of the invoiced amount is made or not.
  • Time of issue of an e-invoice for provision of services is the time of completion of provision of services or the time of issue of the service invoice, irrespective of whether the payment of the invoiced amount is made or not.
  • In case where multiple deliveries are required, or each goods item or service phase is accepted, it shall be mandatory to issue an invoice showing quantity, value of a good or service for each respective delivery or acceptance.

6. Conversion of e-invoices into paper vouchers

  • Legal e-invoices may be converted into paper vouchers.
  • Contents of an e-invoice which is converted into a paper voucher must correspond to those of the paper document.
  • In case where an electronic invoice is converted into a paper voucher, the paper voucher shall be retained for book and monitoring purposes only in accordance with the law on accounting and the law on electronic transactions, and shall not be valid for use in transactions or payments, except for cases where invoices are created from POS cash registers with network connections for electronic data transfer to tax authorities under the provisions.

Use of e-invoices for sale of goods and provision of services

  • Enterprises, economic or other organizations shall use e-invoices with the tax authority’s identification code for their provision of goods or services, regardless of value of each provision of goods or services.
  • If enterprises doing business in the following sectors: electricity, petroleum, post and telecommunications, air transport, road transport, rail transport, sea transport, inland water transport, clean water, finance and credit, insurance, healthcare, electronic commerce, supermarket business, commerce, and enterprises or economic organizations, which have already transacted or will transact with tax authorities via electronic means, develop information technology infrastructure and use accounting software and e-invoicing software systems that meet the needs of e-invoicing and access to e-invoices, store e-invoice data in accordance with regulations and ensure the electronic data transfer to buyers and tax authorities, e-invoices without the tax authority’s identification code may be used  for their provision of goods or services, irrespective of value of each provision of goods or services.
  • Enterprises, economic or other organizations that pose high risks related to taxes shall be required to use e-invoices with the tax authority’s identification code for their provision of goods or services, regardless of value of each provision of goods or services.
  • Business households or individuals keeping accounting records, regularly hiring at least 10 employees and earning the preceding year’s revenue which equals at least 03 (three) billion dong in the agriculture, forestry, aquaculture, industry or construction sector, or gaining the preceding year’s revenue equaling at least 10 (ten) billion dong in the commerce and service sector, shall be obliged to use e-invoices with the tax authority’s identification code for their provision of goods or services, irrespective of value of each provision of goods or services. If business households or individuals that are not bound to use e-invoices keep their accounting records and wish to use e-invoices, they may use e-invoices with the tax authority’s identification code as prescribed by laws.
  • Business households or individuals doing business in such sectors as restaurant, hotel, modern medicine retailing, retailing of fast-moving consumer goods and online provision of services to consumers at certain areas having disadvantageous conditions shall have access to pilot e-invoices with the tax authority’s identification code which is created by POS cash registers with network connections for electronic data transfer to tax authorities from 2018. Based on the piloting outcomes, the official use of e-invoices shall be allowed across the nation.
  • If business households and individuals that do not satisfy the regulatory requirements that bind them to use e-invoices with the tax authority’s identification code as set out in clause 4 of this Article, but need invoices issued to their customers, or if enterprises, economic or other organizations obtain the tax authority’s approval to use e-invoices to issue to their customers, they shall be entitled to receive e-invoices with the tax authority’s identification code from the tax authority at each time when a transaction occurs and shall be obligated to make tax declaration and payment before the tax authority grants them access to e-invoices at each time when a transaction occurs.

 

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