Notice 8625/TB-CTTPHCM 2022 on registration, use and provision of e-invoice information in a number of cases

NOTICE

On guiding the registration, use and provision of e-invoice information in a number of cases specified in Decree No. 123/2020/ND-CP and Circular No. 78/2021/TT-BTC

The Law on Tax Administration dated June 13, 2019 with regulations on e-invoices and e-documents takes effect on July 01, 2022; agencies, organizations and individuals are encouraged to apply the regulations on e-invoices and e-documents before July 01, 2022.

Implementing the Minister of Finance’s directions under Decision No. 1832/QD-BTC dated September 20, 2021 on the application of e-invoices in Ho Chi Minh City. On November 18, 2021, the Ho Chi Minh Tax Department issues the Official Dispatch No. 8777/CTTPHCM-TTHT on the application of e-invoices under in Decree No. 123/2020/ND-CP and Circular No. 78/2021/TT-BTC in Ho Chi Minh City from November 2021.

During the application of e-invoices in accordance with Decree No. 123/2020/ND-CP and Circular No. 78/2021/TT-BTC, the Ho Chi Minh Tax Department has received many questions about the application of e-invoices according to new regulations by taxpayers, the Ho Chi Minh Tax Department promulgates guidance for some common problems as follows:

1. Regarding registration of use, registration of change in use registration information

From July 01, 2022, unused invoices of which issuance notices have been made and unused invoices purchased from the tax agencies as specified in Decree No. 51/2010/ND-CP, Decree No. 04/2014/ND-CP and guiding documents shall expire. Therefore, enterprises, economic organizations, other organizations, business households and individuals (hereinafter referred to as taxpayers) are required to switch to use e-invoices in accordance with Decree No. 123/2020/ND-CP and Circular No. 78/2021/TT-BTC upon sale of goods or provision of services before July 01, 2022.

Enterprises, economic organizations, other organizations, business households and individuals (taxpayers) other than those subject to cessation of use of e-invoices may register to use e-invoices in accordance with Decree No. 123/2020/ND-CP and Circular No. 78/2021/TT-BTC. In case the tax agencies accept the taxpayers’ registration of using e-invoices, the unused invoices must be canceled and a cancellation notice must be sent to the tax agencies.

- If the taxpayers have registered to use e-invoices and have a notification of acceptance by the tax agencies, in cases of change in forms of e-invoices and serial numbers of e-invoices, they are not required to register for change in e-invoice use registration information. If they wish to add another type of invoice as prescribed in Clause 5, Article 8 of Decree No. 123/2020/ND-CP, the taxpayers shall register to change e-invoice use registration information, using the Form No. 01/DKTD-HDDT issued together with Appendix IA to Decree No. 123/2020/ND-CP (hereinafter referred to as Form 01/DKTD-HDDT) with tax agencies. In which, the taxpayers shall fill in correctly and completely the information that taxpayers have registered previously and additional information in the Form No. 01/DKTD-HDDT.

- A taxpayer may use e-invoices provided by many e-invoice service providers. If the taxpayers have registered to use e-invoices and have a notification of acceptance by the tax agencies, and then change or additionally register an e-invoice service provider, the registration of change in e-invoice use registration information shall not be required (Attention: If there is a change in the digital signature due to the change in the e-invoice service provider, the taxpayers must register the change in e-invoice use registration information with the tax agencies).

- In case the email address information stated in the declaration of invoice use registration is incorrect, therefore the taxpayers have not received notice of receipt and notice of acceptance of invoice use registration (the account and password have both been sent to the wrong email), the taxpayers shall register to change their e-invoice use registration information, using the Form 01/DKTD-HDDT for registration of e-mail address change.

- The taxpayers shall use the type of invoice in accordance with the method of declaration and payment of value-added tax:

+ Value-added invoices are used by organizations that declare the vale-added invoices by tax credit method:

+ Sales invoices means invoices for the following organizations and individuals:

□ Organizations and individuals that declare and calculate value-added tax by the method of calculation of tax based directly on added value.

□ Organizations and individuals in non-tariff zones when selling goods or providing services to the inland and when selling goods or providing services among organizations and individuals in the same non-tariff zone, exporting goods and providing services to other countries; and the content “For organizations and individuals in the non-tariff zone” is clearly stated in the invoice.

- If the taxpayers are dependent units that do not register to declare and pay value-added tax with the tax agencies directly managing them, the dependent units shall not register to use a separate e-invoice but use the headquarters’ invoice.

Enterprises (headquarters - parent company) do not register to use e-invoices for their dependent units, if the dependent units directly sell goods, monitor and fully record input and output value-added tax and register for declaration and payment of value-added tax to the tax agencies directly managing such dependent units, the dependent units shall register to use separate e-invoices.

2. Regarding creation of e-invoices under Decree No. 123/2020/ND-CP and Circular No. 78/2021/TT-BTC

When selling goods or providing services, the seller must create an invoice for the buyer (including goods or services for promotion or advertising or used as samples; goods and services used as donations or gifts, for exchange, or payment as salaries to employees and for internal consumption (except goods internally circulated for further production); and goods loaned, lent or returned); and must fill in all contents as required, the e-invoice must comply with the standardized data format provided by the tax agency.

- According to the Decision 1450/QD-TCT dated October 07, 2021 of the General Director of the General Department of Taxation promulgating regulations on components containing the e-invoice data and methods of data transmission and receipt with tax agencies:

+ In cases of selling goods or providing services not subject to value-added tax, when making invoices, the taxpayers shall choose “KCT” that are applied to cases of selling goods or providing services not subject to value-added tax. Accordingly, the e-invoice making software with the design of the KCT - the taxpayers shall select the “KCT” section in the part of value-added tax rate when selling goods or providing services not subject to value-added tax. In addition, taxpayers do not enter data in the section of tax amount.

+ In cases of selling goods or providing services not subject to value-added tax declaration and payment, when making invoices, the taxpayers shall choose: “KKKNT”.

+ In cases of selling goods or providing services subject to value-added tax rate of 8% or foreign contractor tax, when making invoices, the taxpayers shall choose: “KHAC:AB.CD%”.

+ In case the buyer does not have a tax identification number, or has a tax identification number but does not comply with the tax administration law of Vietnam, the buyer’s tax identification number is not required in the invoice, because the e-invoice format stipulates that the field of the buyer’s tax identification number shall be applied to the buyer being a business establishment in Vietnam with a tax identification number of 10 or 13 numerals in accordance with the tax administration law. Therefore, for an e-invoice of goods export with the buyer that has a tax identification number in accordance with a foreign country’s laws, the seller must not fill in the buyer’s tax identification number in the invoice.

- In case the seller has made invoices from No. 1 to No. 3 and sent them to the tax agency for grant of codes. If codes for invoices No. 1 and No. 3 is granted, but code for invoice No. 2 is not issued due to wrong data format, the seller shall make another invoice and send it to the tax agency for grant of code for the erroneous invoice (No. 2). In such case, the new invoice is not the replacing invoice, so the content “This invoice replaces the invoice...” is not required.

- In case the seller has issued an invoice and the buyer being an organization or individual has received the goods, but then the buyer discovers that the goods are not in accordance with the specified specifications and quality, resulting in return of the whole or a part of the goods:

+ If the buyer is a business establishment using invoices, when returning the goods, the buyer shall make an invoice and issue it to the seller. In the invoice, to write the quantity of returned goods, returned tax amount, tax rate and value-added tax. Based on such invoice, the buyer and the seller shall declare to reduce input and output value-added tax revenue.  

+ If the buyer is not a business establishment, the seller shall cancel the made e-invoice, inform the tax agency about the cancellation of the e-invoice and make a declaration to reduce the output VAT revenue at the time of receipt of goods.

- In cases of goods export, when exporting goods for transportation to the border gate or to the place where export procedures are carried out, the business establishment shall use the delivery-cum-internal transport document as a document for circulation of goods in the market. After completing the procedures for exported goods, the establishment shall make an electronic value-added invoice or an electronic sales invoice for the exported goods.

- In case the business establishments apply trade discount for customers or sales promotion in accordance with law provisions, the trade discount and promotion must be clearly shown in invoices.  The determination of the prices subject to value-added tax (the amount without value-added tax) in cases of applying trade discount to customers or sales promotion shall comply with the law provisions on value-added tax.

In case the seller makes a separate 01 (one) e-invoice for trade discount amount at the end of each sales period, in principle, a negative number shall not be recorded for the above-mentioned trade discount value. In case the e-invoice for the last purchase has not yet reduced the trade discount amount of the sold goods, the enterprise shall make an invoice to reduce the trade discount amount (using the mark (-)).

3. Handling of e-invoices containing errors

- In case the seller discovers that an e-invoice with the tax agency’s code which has not been sent to the buyer contains errors: the seller shall notify the tax agency, using the Form No. 04/SS-HDDT in Appendix IA (issued together with the Decree No. 123/2020/ND-CP, hereinafter referred to as 04/SS-HDDT) of the cancellation of the e-invoice with the tax agency’s code which has been created and contains errors. The seller shall make a new e-invoice, send it to the tax agency for grant of a new e-invoice code and send it to the buyer.

- In case errors in an e-invoice with the tax agency’s code or e-invoice without the tax agency’s code are detected by the buyer or seller after such e-invoice has been sent to the buyer:

+ If the buyer’s name and address are erroneous, but the tax identification number and other contents are genuine, the seller shall notify the buyer of the errors and such e-invoice shall not be replaced. The seller shall notify the tax agency of the erroneous e-invoices, using the Form No. 04/SS-HDDT, except for cases in which the e-invoice data of the above-mentioned erroneous e-invoice without the tax agency’s code has not been sent to the tax agency.

If the seller and the buyer decide to make an invoice for adjustment or replacement, sending the Form 04/SS-HDDT to the tax agency is not required.

+ If the seller’s name and address are erroneous, to apply the handling method for cases of errors of the buyer’s name and address.

+ If the tax identification number information, money amount stated in the invoice, tax rate or tax amount is erroneous or the goods listed on the invoice are not in accordance with the specifications and quality, the seller may make an invoice to adjust or replace the invoice with errors.

The invoice adjusting or replacing the invoice with errors must have the content “Adjust the invoice Form No. ... dated ...” or “Replace the invoice Form No. ... dated ...”. The seller must send such invoice to the buyer and is not required to send the Form 04/SS-HDDT to the tax agency.

If the buyer and the seller detect other errors in the invoice after completely handling erroneous e-invoice in the form of adjustment or replacement, such e-invoice shall continue to be processed in the form applied when handling the previous errors.

- For contents of value-related adjustment in the invoice: it is required to use the mark (+) or (-) for writing an increase or a decrease, respectively, in the invoice as actually adjusted.

- In case an e-invoice is issued without form or serial number under regulations or the invoice number contains errors, the seller shall adjust the invoice but not cancel or replace it.

- In case the seller issues an invoice upon charge collection before or while providing services, then cancels or terminates service provision, the seller shall cancel the issued e-invoice and send the tax agency a notice of such cancellation, made according to Form No. 04/SS-HDDT.

- For e-invoices without code to send data to the tax agency by the method of transferring e-invoice data as in the summary of e-invoice data, made according to the Form No. 01/TH-HDDT, the buyer shall send cancellation or adjustment information in the summary of subsequent periods. Sending notice of errors in e-invoices, made according to Form No. 04/SS-HDDT to the tax agency, is not required. The adjustment of invoices in the summary of e-invoice data must ensure filling-in of the information on form of invoice, serial number of invoice, and number of invoice in column 14 “Relevant invoice information” provided in Form No. 01/TH-HDDT (except for cases where the information on form of invoice, serial number of invoice, and number of invoice is not compulsory).

- In case there are errors in the summary of e-invoice data sent to the tax agency, the seller shall send adjustments to the information declared in such summary (select “amending” in the Form No. 01/TH-HDDT);

- In case there is an error in an invoice that has been made in accordance with the Government’s Decree No. 51/2010/ND-CP dated May 14, 2010, Decree No. 04/2014/ND-CP dated January 17, 2014 and the Ministry of Finance’ other guiding documents, the seller and the buyer must make a written agreement, clearly stating the error. The seller makes and sends a new invoice to the buyer to replace the erroneous invoice. An e-invoice replacing an incorrect invoice must have the phrase “Replace the invoice Form No. ... Symbol ... No. ... dated ...”.

- For aviation, the e-invoice for exchange or refund of air transport document shall be considered an adjustment e-invoice without the information “Increase/decrease amendment for invoice Form ... Symbol … No. ... dated...”.  Air transport enterprises may issue their e-invoices for the cases of refund or exchange of transport documents issued by their agents.

- The additional declaration of tax declaration dossiers relating to adjusted or replaced e-invoices (including also cancelled e-invoices) must comply with the law on tax administration.

Attention: The seller shall use the Form No. 04/SS-HDDT to make a notice of adjustment of every e-invoice with errors or a notice of adjustment of multiple e-invoices with errors and send such notice to the tax agency no later than the last day of the value-added tax declaration period in which the adjustment is made.

4. Provision of e-invoice information

Implementing the General Department of Taxation’s Official Dispatch No. 1103/TCT-QLRR dated April 13, 2022 on “provision of e-invoice information”, the General Department of Taxation’s Official Dispatch No. 1727/TCT-QLRR dated May 23, 2022 on guiding “sample regulations on exchange of e-invoice information”, the Ho Chi Minh Tax Department notifies relevant state management agencies of a number of basic contents on provision of e-invoice information and request relevant authorities as follows:

During the period when accounts for lookup on the General Department of Taxation’s Electronic Invoice System have not been provided, the Ho Chi Minh Tax Department requests the authorities (City Market Surveillance Department, City Police, land use rights registration offices at all levels, Insurance agencies, etc.) to support and create favorable conditions for citizens and enterprises in the localities to perform administrative procedures such as registering ownership of properties, automobiles, motorcycles, other vehicles, paying hospital fees from insurance agencies, or look up information on e-invoices of goods circulated in the market, etc. by searching on QR Code application for invoices with QR Code or using paper invoices converted from e-invoices as prescribed in Article 7 of Decree No. 123/2020/ND-CP.

In case the authorities request Form No. 01/CCTT-DK in Appendix II specified in Article 49 of Decree No. 123/2020/ND-CP, immediately after the General Department of Taxation agrees with the sample regulations on provision of e-invoice information between tax agencies (Tax Department/Tax Branch) and external authorities/organizations, the City Tax Department shall issue the Regulations on information provision between the Tax Department/Tax Branch and relevant authorities in Ho Chi Minh City.

5. Support channels of the tax agency

The Ho Chi Minh Tax Department always support enterprises, organizations, business households and individuals in the course of implementation of new regulations on e-invoices, please follow the Ho Chi Minh Tax Department’s channels for guidance on e-invoices on information.

- Website: www.tphcm.gdt.gov.vn and www.hcmtax.gov.vn

- Fanpage of the Ho Chi Minh Tax Department: The Ho Chi Minh Tax Department (https://www.facebook.com/CucThueHCM)

- Ho Chi Minh Tax Department Youtube Channel: The Ho Chi Minh Tax Department (https://bit.ly/38HboIv)

For specific answer to any problem arising in the course of implementation and use of e-invoices, please contact:

- Operation Center of Electronic Invoice Implementation in the General Department of Taxation: Hotline: (024) 33 599 333/E-mail: [email protected].

- Operation Center of Electronic Invoice Implementation in Ho Chi Minh City: Hotline: (028) 3770 22 88, dial 8/E-mail: [email protected].

The Ho Chi Minh Tax Department announces the above-mentioned contents to enterprises, organizations, business households and individuals for information and implementation./.