How to recognize legal, valid and reasonable invoices is very important when the use of illegal invoices is becoming more and more common nowadays. Businesses need to equip themselves with knowledge because they are the first ones affected by invoices that are not in accordance with current regulations.
Join EXPERTIS to find out the legal regulations on this issue.

1. Legality of invoice
What is the use of "illegal invoices"?
In the regulatory documents regulating invoices, the concept of legal invoices is not given. But through the regulations on the use of illegal invoices, we will recognize it as follows:
First, a legal invoice is an invoice that complies with the provisions of law. Illegal invoices are invoices that fall under the cases specified in Clause 9, Article 3 of the Law. Decree 123 / 2020 / ND-CP, details include the following cases:
- fake invoices, documents;
- Invoices and documents that are not yet valid or have expired;
- Invoices are suspended during the period of enforcement by the measure of suspending the use of invoices, except in cases where use is permitted according to the notice of the tax authority;
- Electronic invoices not registered for use with tax authorities;
- Electronic invoices without tax authority codes in cases where electronic invoices with tax authority codes are used;
- Invoices for purchase of goods and services with the date on the invoice from the date the tax authority determines that the seller is not operating at the business address registered with the competent state agency;
- Invoices and documents for the purchase of goods and services with the date of issuance on the invoice or document before the date of determination that the party issuing the invoice or document is not operating at the business address registered with the competent state agency or there has been no notification from the tax authority that the party issuing the invoice or document is not operating at the business address registered with the competent authority, but the tax authority or the police authority or other competent authorities have concluded that the invoice or document is illegal.
So Use of "illegal invoices" is the use of invoices and documents mentioned in the 7 cases above or other cases as prescribed by law.
What is "unlawful use" of an invoice?
Illegal use of invoices and documents is the illegal use of invoices and documents as prescribed in Clause 9, Article 3 of the Law. Decree 123 / 2020 / ND-CP, details include the following cases:
- Invoices and vouchers that do not contain all mandatory contents as prescribed;
- Invoices for erasure or repair not in accordance with regulations;
- Using fake invoices and vouchers (invoices and vouchers with economic operations criteria and contents inscribed but the purchase and sale of goods and services are partially or completely unreal);
- Using invoices that do not reflect the actual value incurred or making false invoices or making fake invoices;
- Using invoices with differences in value of goods or services or deviations from mandatory criteria between copies of invoices;
- Use invoices to turn around when transporting goods in circulation or use invoices of these goods and services to prove other goods and services;
- Using invoices and vouchers of other organizations and individuals (except for invoices of tax authorities and cases authorized to issue invoices) to legalize purchased goods or services or sold goods and services. out;
- Using invoices or vouchers that tax authorities or police or other authorities have concluded is illegal use of invoices and vouchers.
Thus, to comply with regulations when using invoices, the invoicing party needs to avoid 8 cases. "Unlawful use" of invoice as above.
2. Invoice reasonableness
An invoice when put into use must not only be legal but also be reasonable. An invoice is reasonable if it is consistent with the production and business activities of the business organization.
Tax authorities always make objections about the reasonableness of expenses incurred by enterprises during the period to exclude them from deductible expenses. If enterprises cannot prove, object, or convince the tax authorities to believe in the logic, reasonableness, and reality of their expenses, they will be assessed and have their taxes collected.
Thus, to ensure reasonableness, businesses need to ensure that the costs incurred are reasonable, relevant and serve production and business activities.
3. Invoice validity
Valid here can only be understood as customary, and in the case of an invoice, which is a legal document, reliance on custom is not appropriate. The invoice must comply legal (according to regulations of the Law) and reasonable (suitable for business purposes). Therefore, the use of the concept of valid is unnecessary and should be eliminated when talking about invoices.
So, when considering whether an invoice is eligible for use, consider it based on the legal and reasonable factors mentioned above.