Updated at 26/11/2022 - 09:20 pm
Main point:
- The time of making and issuing invoices for the sale of goods 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.
- The time of making and issuing invoices for service provision 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.
Many businesses buy goods/services to sell/provide services back to their customers, but when they haven't received an invoice from the input supplier, the business has already exported the output to its customer. This is a very common problem that many business owners and accountants often do not pay attention to, will this have any impact on the business?
Invoice time #
Pursuant to the provisions of current law as follows:
– Circular No. 39/2014/TT-BTC, guiding the implementation of Decree No. 51/2010/ND-CP dated May 14, 5 and Decree No. 2010/04/ND-CP dated January 2014, 17 01 of the Government regulations on invoices for selling goods and providing services;
– Circular No. 10/2014/TT-BTC, guiding the sanctioning of administrative violations on invoices;
Accordingly, at Point a, Clause 2, Article 16, Circular No. 39/2014/TT-BTC, the Ministry of Finance stipulates the time to issue invoices for sale of goods and provision of services as follows:
- The time of making and issuing invoices for the sale of goods 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.
- The time of making and issuing invoices for service provision 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.
- In case of multiple deliveries, each delivery must make and issue an invoice for the volume and value of goods corresponding to each delivery.
Accordingly, in general, an invoice must be issued at the time of transfer of ownership or right to use the goods or completion of services to the buyer, except in some special cases prescribed by law.
Effects of not issuing invoices on time #
Based on the above regulations of the Ministry of Finance, the fact that the enterprise has not received an invoice from the seller when it has received goods and services from the partner or the partner has transferred the ownership, use and Completing the provision of services to the enterprise without issuing an invoice is a violation of regulations on the time of issuing invoices. In this case, the counterparty will be sanctioned by the tax authority for this violation as well as the corresponding administrative handling measures.
However, the business side will also be jointly liable for the wrong time. Specifically, the enterprise cannot explain to the tax authority that the output invoice is issued before the date of the input invoice of the goods and services provided. It is not possible to sell goods without having imported goods into the warehouse, so these input invoices are considered by the tax authority to be inconsistent and inconsistent with the output revenue, leading to an increase in the value added tax payable. fines for late payment, fines for administrative violations, even excludes the cost of the cost of goods and services provided, increases the payable corporate income tax.
Regulations on penalties for issuing invoices at the wrong time #
In Article 4, 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.
Pursuant to Decree No. 125/2020/ND-CP, which was newly issued on October 20, 10 and took effect on December 2020, 05, the Government has clearly stipulated how to sanction Invoices are made and issued at the wrong time.
Specifically, in Article 24, Decree No. 125/2020/ND-CP stipulates the level of sanction for cases of making or issuing invoices at the wrong time as follows:
- A warning will be imposed in case of making or issuing invoices at the wrong time but not leading to late performance of tax obligations and there are extenuating circumstances;
– A fine of between 3 and 5 million dong for the act of issuing invoices at the wrong time but not leading to late performance of tax obligations (except for the case specified at Point a, Clause 1, Article 24, Decree No. 125/ 2020/ND-CP);
– A fine of from 4 to 8 million VND for the case of making sales invoices or providing services at the wrong time as prescribed by law.
From realizing the importance of complying with timely invoicing, businesses need to understand that any transaction from the other side can affect their business activities. Any noncompliance should not be underestimated until its risks are clearly defined. For example, the issue of invoices, the fact that both the supplier and the user of the product/service are well monitored will help reduce the unnecessary tax risk for both parties.
