- What is an electronic invoice?
- When are businesses required to apply electronic invoices?
- Subjects applying e-invoices
- How to register, change the registration content to use e-invoices
- Invoices generated from cash registers with data transfer connections with tax authorities
- Solutions for businesses and individuals
- What EXPERTIS can do for you
Updated at 25/06/2023 - 11:09 am
What is an electronic invoice? #
Electronic invoice is a collection of electronic data messages about the sale of goods and provision of services, which are created, made, sent, received, stored and managed by electronic means. Instead of invoices created on paper, electronic invoices are created and stored on electronic devices.
Electronic invoices are created, made and processed on the computer system of organizations that have been granted tax codes when selling goods and services and stored on the computers of the parties in accordance with the law on electronic transactions.
Electronic vouchers include documents withholding personal income tax, receipts of taxes, fees and charges presented in electronic form, which are presented in the form of electronic data by responsible organizations or individuals. The tax withholding responsibility is granted to the taxpayer or issued by the tax, charge and fee collection organization to the payer by electronic means in accordance with the law on fees and charges and the tax law.
When are businesses required to apply electronic invoices? #
According to Article 59 Decree 123 Regarding e-invoices, agencies, organizations and individuals that meet the conditions for information technology infrastructure apply electronic invoices and documents according to the guidance in Circular 78/2021/TT-BTC before July 01, 07.
The roadmap for implementing mandatory e-invoices is divided into two phases by the Ministry of Finance:
- Phase 1: from November 01, 11 to March 2021, 31: deploying e-invoices in 03 provinces and cities: Hanoi, Ho Chi Minh City. Ho Chi Minh City, Hai Phong, Phu Tho, Quang Ninh, Binh Dinh.
- Phase 2: from April 01, 04 to July 2022, 07: applied nationwide.
In addition, Article 60 of Decree 123 also stipulates that businesses and economic organizations are allowed to use paper invoices until the end of June 30, 06 for invoices announced before October 2022, 19. Businesses need to convert e-invoices without codes to e-invoices with tax authorities' codes.
Enterprises that are using e-invoice software may continue to use it as is and issue invoices normally until the tax authority issues a notice of registration of new e-invoice usage information according to the 123-year Decree 2020 on e-invoices and Circular 78. Then, businesses need to send registration information to the tax authorities through an organization providing solutions for electronic invoices and electronic documents.
Subjects applying e-invoices #
Subjects of application of e-invoices comply with the provisions of Article 91 of the Law on Tax Administration No. 38/2019/QH14. These subjects need to comply with the regulations on the issuance and declaration of tax obligations when the tax authorities issue e-invoices with codes.
In addition to the business enterprises determining which type of e-invoice they are subject to, the tax authority will classify businesses and taxpayers, approve registration for the use of e-invoices with different types of e-invoices. code or no code or e-invoice with code according to each time it is generated.
Enterprises can look up their purchase/sold e-invoice documents on the e-invoice portal of the General Department of Taxation.
E-invoices with tax authority's code for each time they are generated #
An e-invoice with a tax authority's code issued for each generation is a sales invoice when:
- Business households and individuals do not meet the conditions to use e-invoices with codes but need invoices to deliver to customers.
- Organizations that do not do business but have transactions to sell goods and provide services
- Enterprises after dissolution or bankruptcy that have liquidation of assets need invoices to deliver to buyers
E-invoice with tax authority's code #
- Enterprises and economic organizations that trade in goods or provide services regardless of the value of goods or each sale need to apply an electronic invoice with the tax authority's code, except for cases where an electric bill is used. coded or unencrypted elements according to each generation listed above.
- Business households or individuals with micro-enterprises shall apply the accounting and tax payment regimes according to the declaration method and the cases in which revenue can be determined when selling goods and services.
- In addition, Decree 123 in 2020 on e-invoices also stipulates that businesses subject to high tax risks must also apply e-invoices with tax authorities' codes.
E-invoices without tax authority's code #
- Enterprises doing business in the fields of electricity, petroleum, postal services, water supply, financial institutions, insurance, healthcare, e-commerce, supermarkets, transportation and logistics.
How to register, change the registration content to use e-invoices #
Pursuant to Article 15 of Decree 123/2020/ND-CP 2020 on e-invoices: enterprises, economic organizations, other organizations, business households and individuals are not subject to cessation of use of e-invoices. In Clause 1, Article 16 of Decree 123 on e-invoices, it is necessary to register to use e-invoices through organizations providing e-invoice services.
In addition, businesses can register to use e-invoices through the portal of the General Department of Taxation or service providers authorized by the General Department of Taxation in case of using electronic invoices of the General Department of Taxation. Tax authorities do not have to pay for the service.
Within 01 working day from the date of receipt of registration of e-invoices from the enterprise, the tax authority shall send a notice to the enterprise of the acceptance or non-acceptance of the registration of the use of e-invoices. .
From the time the tax authority accepts the registration of use of e-invoices under Decree 123, enterprises must stop using e-invoices that have been announced to be issued according to the old regulations, and destroy the notified paper invoices. Released but not yet used. The order of destruction of paper invoices and unused invoices shall comply with Article 27 of Decree 123 on electronic invoices.
Invoices generated from cash registers with data transfer connections with tax authorities #
From July 01, 07, regardless of stores and businesses doing business in retail, supermarkets, groceries, drugs, e-commerce, restaurants, hotels, etc., it is necessary to digitally convert and apply exports. Electronic invoices from the connected cash register transfer data to the tax authorities and must ensure:
- Recognize printed invoices from cash registers connected to electronic data transfer with tax authorities
- It is not mandatory for businesses and stores to have a digital signature
- Expenses for purchasing goods and services using invoices generated from cash registers are determined as expenses with sufficient legal invoices and documents when determining tax payment obligations.
Therefore, for businesses and stores that are doing traditional business, it is necessary to convert digitally to apply modern technologies in sales management and register to use electronic invoices on cash registers.
Solutions for businesses and individuals #
- To equip the infrastructure to ensure the conversion of e-invoices and electronic documents according to regulations.
- Searching for service providers of receiving, transmitting and storing e-invoice data to meet requirements.
- Send notice of use of electronic invoices to tax authorities.
- Do a search for a solution for invoicing from the cash register with a data connection to the Tax authority.
- Manage the names and passwords of invoice-issuing accounts issued by tax authorities.
- Create an electronic invoice for the sale of goods and provide services and send it to the buyer, the tax authority, and the organization providing the e-invoice service and take responsibility for the legitimacy and accuracy of the invoice.
- Transfer data of e-invoices without code to tax authorities via the portal of the General Department of Taxation.
What EXPERTIS can do for you #
For more information on applying e-invoice details, you can refer to the article Deploying the application of new e-invoices in Ho Chi Minh City. Ho Chi Minh City from November 11.
If you need to know more about the application roadmap as well as other contents related to e-invoices and e-documents, please contact our Consulting Department for advice and answers. In addition, if your business needs advice on an e-invoice solution provider, EXPERTIS can also give you an evaluation of your choice.
In addition, EXPERTIS advises on some risks arising in the process of applying e-invoices. Thereby, helping businesses avoid unnecessary troubles as well as save time handling unnecessary work.