ACCORDING TO DECREE
No. 119/2018/ND-CP on September 12, 2018
The implementation of e-invoices and e-invoices with tax authorities’ identification codes shall be completed by November 1, 2020. VIVA proudly not only to support our clients in registering and issuing of electronic invoices in accordance with the local regulations but also help to convert into paper vouchers and manage under the rules for accounting on original documents and other business records management requirements.
SUBJECTS OF APPLICATION
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;
- Organizations established and operated under the Law on Cooperatives;
- Business households or individuals.
TRANSITION PERIOD PRIOR TO 1/11/2020
- 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 electronic 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.
ELECTRONIC INVOICES TYPES
E-invoices shall be classified into the following types:
- 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.
- 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.
- Other electronic invoices, including electronic stamps, electronic tickets, electronic cards, electronic receipts, electronic goods dispatch and consignment note, or electronic evidencing documents.
- 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.
CONVERSION OF ELECTRONIC 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.
- Where an electronic invoice is not only for tax management purposes but shall be retained for book and monitoring purposes in accordance with the law on accounting and the law on electronic transactions. Electronic invoice therefore shall be converted into a paper voucher and manage under the rules for accounting on original documents and other business records management requirements.
GOODS AND SERVICE SELLERS SHALL USE OF E-INVOICES AS FOLLOWS:
- Enterprises 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.., 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, electronic 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 that pose high risks related to taxes shall be required to use electronic 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 and individuals that need invoices issued to their customers, 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 electronic invoices at each time when a transaction occurs.
RULE AND REGULATION OF ISSUANCE AND USE OF LEGAL INVOICES
Invoice means a document made by a seller to record information on goods or service sale under law. Creation of an invoice means the making of an invoice used for goods and service sale by business organizations and individuals, including invoices printed out from enterprises’ machines or equipment. Legal invoice means legal proves for business transactions and compliance reports.
GOODS AND SERVICE SELLERS ARE OBLIGED TO:
- Manage invoice creation activities under current regulations;
- Use valid electronic signature properly when issuing the invoices;
- Make and send invoice issuance notices under regulations;
- Make out and hand invoices when selling goods or services to customers, except cases specified in current rule and regulation;
- Regularly inspect the use of invoices and promptly prevent violations:
- Report on the use of invoices to managing tax offices under the Finance Ministry’s regulations.
RESPONSIBILITIES OF GOODS AND SERVICE BUYERS
- When buying goods or services, to request sellers to make out and hand invoices.
- To provide accurate information necessary for sellers to make out invoices.
- To sign invoice originals already fully filled in when directly buying goods, except cases specified by the Ministry of Finance.
- To use invoices for proper purposes.
- To provide information indicated in invoices to competent agencies upon request.
Fail to collect the legal invoices for business transactions means refuse under law all rights of tax deduction, tax refund and might lead to recollection and penalties on tax obligation seriously in the following years.
ABOUT VIVA BUSINESS CONSULTING
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