- 1. The role of invoices for businesses
- 2. What should businesses pay attention to when using invoices?
- 3. Regulations on penalties for administrative violations on invoices
Updated at 29/11/2022 - 11:54 am
The article provides guidance on legal regulations and how to avoid risks arising from the use of invoices for businesses.
Invoices can be identified as the most important document in the input documents that organizations and business households and individuals need to pay attention to, check and strictly manage. In recent years, the State has increasingly tightened the management and use of invoices when selling goods and providing services. Specifically, it is mandatory to use electronic invoices instead of paper invoices and invoices are generated from cash registers with data connection with tax authorities.
Therefore, to ensure the correctness with the legal regulations and avoid risks arising from the use of invoices, let Expertis learn through the instructions below.
1. The role of invoices for businesses #
1.1. What is an invoice? #
Invoice is a type of document or paper made by a seller for the purpose of recording the content of a transaction event, a transaction of selling goods or providing services arising in accordance with law and must ensure tell:
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1.2. Realize the importance of invoices #
Because the invoice is a document showing the production and business activities of the enterprise, the importance of the invoice is something that every business needs to recognize. Specifically:
- For the accounting stage: invoices are the basis to help accountants make reports on the operation situation, declare taxes, finalization and year-end accounting in the most accurate way to submit to the director or director. tax authorities.
- For the buyer: the invoice is proof that the buyer has paid and paid in full to enjoy the product or service. If there is no invoice, the buyer will not have the right to sue when there is a dispute or conflict.
- For the supplier: the invoice will show information related to the two parties buying and selling, the date of product and service provision in order to record the business operation history of the unit. The seller needs to keep the invoice to confront the buyer when conflicts and disputes occur.
In short, correctly recognizing the importance of invoices will help businesses plan to manage it in the most effective way. At the same time, good invoice management also shows a strict process, controlling costs of the business, avoiding losses and minimizing cases of bad actors taking advantage of loopholes in management to commit bank fraud. books, disclosing technology secrets, business strategies.
2. What should businesses pay attention to when using invoices? #
2.1. Rules for using invoices #
According to the provisions of Articles 4 and 8 of Decree No. 123/2020/ND-CP, when using invoices, businesses and business establishments need to adhere to the principle:
- When selling goods or providing services, the seller must make and issue an invoice to deliver to the buyer
- Invoices must be filled with information as prescribed. In case of using e-invoices, invoices must be made in the standard data format of tax authorities.
- Business establishments that declare and pay value-added tax (VAT) according to the credit method with exported goods and services must use electronic VAT invoices when exporting goods and services.
2.2. Invoice time #
Pursuant to Article 9 of Decree No. 123/2020/ND-CP stipulating the time of making invoices for each object, the specific cases are determined as follows:
- For the sale of goods, the time of making and issuing invoices must be the time of transferring the ownership or the right to use the goods to the buyer, regardless of whether the money has been received or not.
- For the provision of services, the time of making and issuing invoices must be the date of completion of service provision, regardless of whether money has been collected or not. If a service-providing organization collects money before or during service provision, the time of making or issuing invoices must be the date of payment.
- For construction activities, installation, the time of invoice is the time of acceptance, handover of works, work items, construction volume, completion of installation, regardless of whether money has been collected or not. In case of multiple deliveries, each delivery must make and issue an invoice for the volume and value of goods corresponding to each delivery.
- For real estate business organizations, construction of infrastructure, construction of houses for sale or transfer, divided into the following cases:
- The ownership and use rights have not been transferred: if the collection of money is made according to the project progress or the collection time stated in the contract, the time of invoice is the date of collection of money or according to the payment agreement in the contract.
- Having transferred ownership and use rights, the time of making invoices is the time of transferring ownership and use rights, regardless of whether money has been collected or not.
In general, invoices must be issued at the time of transfer of ownership or right to use the goods or completion of services to the buyer, except for some special cases that are specified by law such as:
- Providing services in large quantities, arising frequently, it takes time to compare data between service providers and customers and partners as in the case of providing direct support services for air transport. , providing aviation fuel for airlines, providing electricity, water, television services, postal and delivery services, telecommunications services, logistics services, and information technology are provided in a certain period. then the time of invoicing is the time to complete the data comparison and control between the parties, but no later than the 07th day of the month following the month in which the service is provided or no later than 07 days from the end date of the invoice. convention period.
- Business organizations purchase air transport services through websites and e-commerce systems is prepared in accordance with international practices, the time to issue invoices is no later than 05 consecutive days from the date the air transport service documents are published on the website system and e-commerce system.
3. Regulations on penalties for administrative violations on invoices #
Circular No. 68/2019/TT-BTC, issued on September 30, 09, the Ministry of Finance has issued detailed regulations on the time of making and issuing legal invoices to businesses. In case the units do not comply with the regulations at the time of making and exporting, they will be classified as violations and have to take full responsibility before the law.
3.1. For the act of invoicing at the wrong time #
According to Article 24 of Decree No. 125/2020/ND-CP stipulating the sanction for the act of making invoices at the wrong time, specifically as follows:
- Does not lead to late performance of tax obligations:
- A warning will be imposed if there are extenuating circumstances.
A fine ranging from VND 3.000.000 to VND 5.000.000 shall be imposed, except for the case of warning.
- For late performance of tax obligations, a fine ranging from VND 4.000.000 to VND 8.000.000 will be applied.
- A warning will be imposed if there are extenuating circumstances.
3.2. For the act of not invoicing when selling #
According to the provisions of Articles 17 and 24 of Decree No. 125/2020/ND-CP, for acts of failing to issue invoices when selling goods or providing services to buyers according to regulations, specific penalties shall apply. :
- A fine ranging from VND 10.000.000 to VND 20.000.000.
- If the case is concluded by the tax authority as tax evasion, then:
- A one-time fine for the amount of tax evasion for the taxpayer who commits one or more extenuating circumstances;
- A fine of 1,5 times the amount of tax evasion shall be imposed on taxpayers who commit violations without aggravating or mitigating circumstances;
- A fine of twice the amount of tax evasion shall be imposed on taxpayers who violate regulations with an aggravating circumstance;
A fine of 2,5 times the amount of tax evasion shall be imposed on taxpayers who commit two aggravating circumstances;
- A fine of 3 times the amount of tax evasion for taxpayers with three or more aggravating circumstances.
Note: The fine level for individuals is 1/2 times the fine level for organizations committing the same violation, except for the fine level for violations specified in Articles 16, 17 and 18 of Decree No. 125/2020/ND-CP.
Above are all instructions on using the latest invoices that Expertis sends to organizations, business households and individuals paying taxes according to the business declaration method that is known and strictly followed according to state regulations.
If you need to be reviewed and consulted on whether your business's current use of invoices is reasonable and in accordance with the law, please contact our Consulting Department for quick support and advice. most convenient.