Digital transformation is an inevitable trend following the development wave of the 4.0 technology revolution. Currently in Vietnam, the government promotes the transformation and implementation of public administrative procedures through electronic means.
Accordingly, the Ministry of Finance has also issued many relevant legal documents to declare, pay taxes, fees, etc… for enterprises, economic organizations, business households and individuals using chemicals applications and electronic documents to create favorable conditions for all economic sectors to make tax payment and payment quickly and transparently, reducing paperwork and business costs.
In the Law on Tax Administration 2019, the National Assembly promulgates an appropriate roadmap for enterprises, economic organizations, business households and business individuals to convert from the traditional method of tax declaration and payment (in paper) to electronic invoices. According to the provisions of Article 91 and Clause 2, Article 151 of the Law on Tax Administration 2019, enterprises must convert to electronic invoices by July 1, 2022.
On October 19, 2020, the Government detailed regulations on invoices and documents, and on September 17, 2021, the Ministry of Finance issued Circular No. 78/2021/TT-BTC guiding the implementation of Decree 123 /2020/ND-CP on converting the form of invoice without tax authority’s code to the form of an electronic invoice with the tax authority’s code….
Types of electronic invoices
E-invoice format is a technical standard that stipulates the data type and data length of information fields serving the transmission, reception, storage and display of e-invoices. The electronic invoice format uses the XML text format language (XML stands for the English phrase “eXtensible Markup Language” was created for the purpose of sharing electronic data between information technology systems).
The e-invoice format consists of two components: a component containing the business data of an e-invoice and a component containing digital signature data. For e-invoices with the tax authority’s code, there is an additional component containing data related to the tax authority’s code.
E-invoices specified in Decree 123/2020/ND-CP include the following types:
1. Value-added invoices for organizations that declare value-added tax by the deduction method;
2. Bill of sale;
3. Electronic invoices for the sale of public property;
4. National reserve sales electronic invoices are used when agencies and units of the system of state reserve agencies sell national reserve goods;
5. Other types of invoices such as stamps, tickets, cards have the form and content according to regulations; Air freight receipts; international freight receipts; bank service fee receipt..;
6. Documents that are printed, issued, used and managed such as invoices include warehouse receipts cum internal transportation, delivery notes sent to agents for sale.
Objects applying e-invoices
E-invoices include e-invoices with tax authority’s code and e-invoice without tax authority’s code.
Users of e-invoices with tax authorities’ codes:
Objects of application of e-invoices shall comply with the provisions of Article 91 of the Law on Tax Administration No. 38/2019/QH14 as follows: Enterprises and economic organizations use e-invoices with tax authorities’ codes when selling goods. goods or services, regardless of the value of each sale of goods or provision of services. Business households and individuals that do not meet the revenue criteria of small and micro enterprises fail to meet the accounting regime in enterprises and the cases in which revenue can be determined when selling goods, services using electronic invoices with tax authorities’ codes when selling goods or providing services.
Regulations on the issuance and declaration of tax liability when the tax authority issues an e-invoice with the tax authority’s code each time it is incurred is as follows:
- Issue an electronic invoice with the tax authority’s code each time it is generated as a sales invoice in the following cases:
- Business households and individuals do not meet the conditions to use e-invoices with tax authority’s code but need an invoice to deliver to customers;
- Business organizations that have transactions of selling goods or providing services;
- After the enterprise has dissolved, gone bankrupt, has terminated its tax identification number and has incurred liquidation of assets, it needs an invoice to deliver to the buyer;
- Enterprises, economic organizations, business households and individuals that are eligible to pay value added tax by the direct method fall into the following cases:
Stopping business operations but not completing the procedures for termination of the tax code, whether there is a liquidation of assets requiring an invoice to deliver to the buyer;
Suspending business operations, requiring invoices to be delivered to customers to perform contracts signed before the date the tax authority announces the business suspension;
Being coerced by the tax authority by stopping the use of invoices.
- Issue an electronic invoices with the tax authority’s code for each time it is incurred as a value-added invoice in the following cases:
- Enterprises, economic organizations and other organizations subject to value-added tax payment by the deduction method in the following cases:
Ceasing business operations but not completing procedures for TIN deactivation, having incurred liquidation of pledged assets with invoices to deliver to buyers;
Suspending business operations requires invoices to be delivered to customers to perform contracts signed before the date the tax authority announces the business suspension;
Coerced by the tax authority by stopping the use of invoices.
Users of invoices without tax authorities’ codes include:
Enterprises doing business in the fields of electricity, petroleum, post and telecommunications, clean water, finance and credit, insurance, healthcare, e-commerce business, supermarket business, commerce, freight transport air, road, rail, sea, waterway and businesses and economic organizations that have or will conduct transactions with tax authorities by electronic means, build information technology infrastructure, systematically accounting software, e-invoice software to meet the preparation and lookup of e-invoices, store e-invoice data according to regulations and ensure the transmission of e-invoice data to buyers and to customers. Tax authorities may use e-invoices without tax authority’s code when selling goods or providing services, regardless of the value of each sale of goods or provision of services.
Register to use e-invoices
Enterprises, economic organizations, other organizations, business households and individuals that are eligible for issuance of e-invoices with the tax authority’s code each time they are incurred, send an application for the issue of e-invoices with the code of the tax authority tax authorities according to form 06/DN-PSĐT Appendix 1A of Decree 123/2020/ND-CP to the tax authority and access to the tax authority’s electronic invoicing system to issue electronic invoices. After enterprises, organizations and individuals have fully declared and paid taxes in accordance with the law on value-added tax, personal income, corporate income and other taxes and fees (if any), within working days, the tax authority shall issue the tax authority’s code on the e-invoice made by the enterprise, organization or individual.
In case the enterprise is an organization that connects and transmits e-invoice data directly to the tax authority, it shall register to use e-invoices through the portal of the General Department of Taxation according to form No. 01/ DKTD-HDDT Appendix IA issued under Decree 123/2020/ND-CP.
Within 01 working day from the date of receipt of registration for use of e-invoices, the tax authority shall send an electronic notice, made according to Form No. 01/TB-DKĐT, to the organization providing the electricity-invoice service or send an electronic notice directly to an enterprise, economic organization, other organization, business household or individual about accepting or not accepting registration for the use of e-invoices.
For business households, business individuals that do not meet the conditions to use electronic invoices with codes of tax authorities prescribed by tax authorities but need invoices to deliver to customers or in case businesses, economic organizations, other organizations that are approved by tax authorities to issue e-invoices to deliver to customers, they will be issued e-invoices with code by tax authorities for each time they are incurred and must declare and pay tax before the tax authorities issue them e-invoices for each generation.
From the time the tax authority accepts the registration for the use of e-invoices as prescribed in this Decree, enterprises, economic organizations, other organizations, business households and individuals must stop using electricity bills. The company has announced the issuance according to the previous regulations, destroys the paper invoices that have been announced to be issued but have not yet been used.
Above is an article about “Legal regulations on registration of use of electronic invoices” of Apra Law Firm. If you have questions or comments about the issues mentioned in the article and need to be answered, please contact the hotline for advice and support.
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