Important notes to know for businesses when using invoices
Common risks when issuing and receiving invoices
Measures to prevent damage caused by illegal invoices
Time to issue sales invoices #
When to invoice? #
Regarding issuing invoices and taxes, based on Article 4 of Decree No. 123/2020/ND-CP dated October 19, 10 of the Government stipulating the principles of making, managing and using invoices and documents:
“Article 4. Principles of making, managing and using invoices and vouchers
1. When selling goods or providing services, the seller must issue an invoice to deliver to the buyer (including cases of goods and services used for promotion, advertising, samples, goods and services. services used for giving, giving, giving, exchanging, paying instead of wages for employees and internal consumption (except for goods circulating internally to continue the production process); exporting goods in the form of loans , lending or returning goods) and must fully record the contents as prescribed in Article 10 of this Decree. In case of using e-invoices, it must follow the standard data format of the tax authorities as prescribed in Clause 12 of this Article. Article XNUMX of this Decree…”.
Time to Invoice #
Pursuant to Article 9 of Decree No. 123/2020/ND-CP on the time of invoice issuance as follows:
“Article 9. Time of invoicing
1. The time of making invoices for the sale of goods (including the sale of state assets, confiscated assets, replenishment of state funds and sale of national reserve goods) is the time of transfer of ownership or use rights. use the goods for the purchaser, regardless of whether money has been received or not.
2. Time of invoicing for service provision is the time of completion of service provision, regardless of whether money has been collected or not. In case the service provider collects money before or while providing the service, the time of making an invoice is the time of collecting money (excluding the case of collecting a deposit or an advance to secure the performance of the supply contract). provides the following services: accounting, auditing, financial and tax consulting; valuation; survey, technical design; supervision consultancy; construction investment project formulation).
3. In case of multiple deliveries or handover of each service item or stage, each delivery or handover must issue an invoice for the volume and value of the delivered goods or services respectively.
4. Invoice time for some specific cases is as follows:
… c) For construction and installation activities, the time of invoice issuance is the time of acceptance and handover of works, work items, completed construction and installation volumes, regardless of receipts. money or not received money.
d) For organizations trading in real estate, building infrastructure, building houses for sale or transfer:
d.1) In case the ownership or use rights have not been transferred: If the payment is made according to the project implementation schedule or the payment schedule stated in the contract, the time of invoice issuance is the date of collection or according to the payment schedule. payment agreement in the contract.
d.2) In case the ownership or use rights have been transferred: The time of making invoices shall comply with Clause 1 of this Article.
Common violations of regulations on invoicing #
Administrative violations on invoices mean the acts of errors committed by organizations or individuals violating the provisions of the law on invoices but not being crimes and according to law provisions must be sanctioned for violations. main.
- Invoices are not made at the prescribed time.
- Make invoices out of order from small to large as prescribed.
- Do not issue invoices for goods and services used for promotion, advertising, or samples; goods and services used for giving, giving, giving, exchanging or paying wages for employees, except for goods for internal circulation and internal consumption to continue the production process.
- Making the wrong type of invoice according to regulations delivered to the buyer or declared tax.
- Making e-invoices without the approval notice of the tax authority or before the date the tax authority accepts the use of e-invoices with or without the tax authority's code.
- Making invoices for the sale of goods and services during the period of business suspension, except for the case of issuing invoices to customers for performance of contracts signed before the date of notice of business suspension.
- Make electronic invoices from cash registers without connection, transfer data electronically to tax authorities.
- Violations against regulations on data transmission of electronic invoices:
- Transfer e-invoice data to tax authorities past the prescribed time limit.
- Transfer of incomplete electronic invoice data to the total number of invoices issued in the period.
- Failing to transfer electronic invoice data to tax authorities within the prescribed time limit.
Risks to note for businesses when using invoices #
Lawful invoices and documents are invoices and vouchers that are correct and complete in form and content as prescribed in Decree No. 123/2020/ND-CP.
Acts of using illegal invoices and vouchers should be noted: #
- Using fake invoices and vouchers;
- Using invoices and vouchers that are not yet valid or expired;
- Using discontinued invoices during the period of being coerced by the measure of discontinuing the use of invoices, except in cases where the use of invoices is permitted under the notice of tax authorities;
- Using electronic invoices without registration with tax authorities;
- Using electronic invoices without tax authority's code in case of using electronic invoices with tax authority's code;
- Using invoices for purchase of goods and services with a date made 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;
- Using invoices and vouchers for purchase of goods and services with a date on which the invoice or voucher is made prior to the date that the invoice maker or voucher is determined not to operate at the business address registered with the competent state agency. authority or there is no notice from the tax authority that the invoice and document maker does not operate at the business address registered with the competent authority but the tax authority or the police or other relevant agencies Another function has concluded that invoices and vouchers are not legal.
Acts of illegal use of invoices and vouchers should be avoided #
- Using 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 expenditures and economic contents recorded but the purchase and sale of goods and services are not real in part or in whole); invoices that do not reflect the actual value incurred or make false invoices or make 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 and vouchers that tax authorities or police or other authorities have concluded is illegal use of invoices and vouchers.
Understand the responsibilities of sellers and buyers when making transactions of buying and selling goods and services #
Responsibilities of goods sellers or service providers using e-invoices: #
When using e-invoices, the seller is responsible for:
- Manage names and passwords of accounts that have been issued by tax authorities.
- Create e-invoices for the sale of goods and provision of services to send to the tax authority that issues the code and take responsibility before law for the legality and accuracy of the e-invoice.
- Send e-invoices with the tax authority's code to the buyer immediately after receiving the e-invoice with the tax authority's code (or transfer the e-invoice data without the tax authority's code to the tax authority). tax via the website of the General Department of Taxation).
- Store and ensure the integrity of all electronic invoices; comply with legal regulations on ensuring safety and security of electronic data systems.
- Comply with the inspection, examination and comparison by tax authorities and competent agencies in accordance with law.
Responsibilities of buyers of goods and services #
For buyers, when purchasing goods or services, they are responsible for:
- Request the seller to make and deliver an invoice when buying goods and services.
- Provide accurate information necessary for the seller to invoice.
- Sign the invoices with full content in case the parties have an agreement on the buyer's signature on the invoice.
- Use invoices for the right purposes.
- To provide information on invoices to competent authorities upon request. In case of using invoices ordered by tax authorities, the original invoice must be provided. regulations on the search, provision and use of electronic invoice information.
Measures to reduce risks in the management and use of invoices #
“When buying goods and services directly or online, only receive goods and declare input VAT to calculate the deductible expenses when calculating CIT for e-invoices made by the seller (with real goods) Post full information (headquarters, tax code), in accordance with the information on the order.
Regularly access the Electronic Invoice System on the tax authority's web portal (hoadondientu.gdt.gov.vn) and the General Department of Taxation's mobile App "Look Up Invoices" to look up and reconcile purchase and sale orders of goods and services to check the validity of invoices and promptly detect illegal invoices.
Risk signs on invoices, VAT refunds #
FAQ - Frequently Asked Questions - Special Cases #
If I receive invoices at the wrong time, will I be included in the deduction for reasonable expenses?
For the buyer: Invoices made at the wrong time will be included in the expenses when calculating CIT and declaring and deducting input VAT, provided that the purchase and sale is true; have invoices and payment vouchers in full; The seller has fully declared and paid tax.
For the seller: There will be a penalty for the act of making invoices at the wrong time, depending on the case, the penalty will be different.
How will the act of making invoices at the wrong time be administratively sanctioned?
Pursuant to Article 24 of Decree 125/2020/ND-CP stipulates as follows:
Penalties for violations against regulations on invoicing when selling goods and services
1. A warning shall be imposed for one of the following acts:
a) Invoices are issued at the wrong time but do not lead to late performance of tax obligations and there are extenuating circumstances;
...
3. A fine ranging from VND 3.000.000 to VND 5.000.000 shall be imposed for making invoices at the wrong time but not leading to late performance of tax obligations, except for the case specified at Point a, Clause 1 of this Article.
4. A fine of between VND 4.000.000 and VND 8.000.000 for one of the following acts:
a) Making invoices at the wrong time as prescribed by law on invoices for selling goods and providing services, except for the case specified at Point a, Clause 1 and Clause 3 of this Article;
...
So:
- If the invoice is issued at the wrong time but does not lead to the delay in the performance of tax obligations and there are extenuating circumstances, a warning will be imposed.
- If the invoice is issued at the wrong time but does not lead to late performance of tax obligations, a fine of between 3 million and 5 million will be imposed.
– If the invoice is made at the wrong time (except for the above 2 cases), the fine will be from 4 million to 8 million VND
What is considered to be invoiced at the wrong time?
Question:
Company A operates from Monday to Saturday morning and hires unit B to perform customs declaration services and work overtime to clear export goods. But the time to be granted clearance by the customs is on Saturday afternoon (the time when company A is not active), so no e-invoice is issued on the day of customs clearance.
Reply:
The Ministry of Finance responded to this issue as follows:
Pursuant to the Government's Decree No. 123/2020/ND-CP dated October 19, 10 on invoices and documents:
Article 4 stipulates the principles of making, managing and using invoices and vouchers:
"first. When selling goods or providing services, the seller must issue an invoice to deliver to the buyer (including cases where goods and services are used for promotion, advertising, samples; for giving, giving, giving, exchanging, paying for employees' wages and for internal consumption (except for goods circulating internally to continue the production process); exporting goods in the form of loans, giving borrowing or returning goods) and must fully write the contents as prescribed in Article 1 of this Decree. In case of using e-invoices, it must follow the standard data format of the tax authorities as prescribed in Article 10. This decree…”.
Article 13 provides for the application of electronic invoices when selling goods and providing services:
“… 3. Regulations on the application of e-invoices, delivery notes cum internal transportation, delivery notes sent to agents for sale in some specific cases according to management requirements are as follows:
… c) Business establishments that declare and pay VAT by the credit method have exported goods and services (including export goods processing establishments) when exporting goods and services using invoices. Electronic VAT.
When exporting goods for transportation to the border gate or to the place where export procedures are carried out, the establishment shall use the ex-warehousing-cum-internal transport note as a document for circulation of goods on the market. After completing the procedures for exported goods, the establishment shall issue a VAT invoice for the exported goods…”.
Pursuant to Decree No. 125/2020/ND-CP dated October 19, 10 of the Government providing for penalties for administrative violations on taxes and invoices:
Article 24 provides for penalties for violations against regulations on invoicing when selling goods and services:
"first. A warning shall be imposed for one of the following acts:
a) Invoices are issued at the wrong time but do not lead to late performance of tax obligations and there are extenuating circumstances;
… 3. A fine ranging from VND 3.000.000 to VND 5.000.000 shall be imposed for making invoices at the wrong time but not leading to late performance of tax obligations, except for the case specified at Point a, Clause 1 of this Article. .
… 4. A fine of between VND 4.000.000 and 8.000.000 shall be imposed for one of the following acts:
a) Making invoices at the wrong time as prescribed by law on invoices for selling goods or providing services, except for the case specified at Point a, Clause 1, and Clause 3 of this Article;…”.
Pursuant to the above provisions, in case your company has exported goods and services (including export goods processing establishments) when exporting goods and services, it will issue an electric VAT invoice. death as prescribed at Point c, Clause 3, Article 13 of Decree No. 123/2020/ND-CP dated October 19, 10 of the Government.
In case his company violates regulations on making invoices at the wrong time when selling goods and services, it will be sanctioned according to the provisions of Article 24 of Decree No. 125/2020/ND-CP dated October 19/ 10 of the Government.
Please base on the actual situation, compare legal documents to comply with regulations. In the process of implementation, if you still have problems, please provide documents related to the problem and contact the tax authority directly managing it for specific instructions.
