Updated at 27/11/2022 - 09:42 pm
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.
A. Invoice #
1. Legitimate Invoice #
Legal means complying with the provisions of the law. Accordingly, a legal invoice must comply with the provisions of the law. However, the regulatory documents on invoices do not introduce the concept of legal invoices. But through the activities of using illegal invoices, we will recognize it more easily.
According to the provisions of Clause 9, Article 3 of Decree 123/2020/ND-CP stipulating:
"Illegal use of invoices and vouchers means:
- 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 e-invoices without tax authority's code in case of using e-invoices with tax authority's code; use invoices for purchase of goods and services with a 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;
- 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.
Illegal use of invoices and vouchers is the use of:
- 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, a legal invoice is an invoice that does not fall under the cases of illegal use invoices. The issuance of invoices must comply with the provisions of law.
2. Invoice validity #
An invoice is considered valid when the invoice is issued with the correct criteria and contents according to current regulations of law. Based on the cases where input invoices are not deductible specified in Clause 15, Article 14 of Circular 219/2013/TT-BTC and principles of invoicing specified in Clause 1, Article 16 of Circular 39/2014/TT -BTC (for invoices issued before July 01, 07) and Decree 2022/123/ND-CP (for invoices issued from July 2020, 10), EXPERTIS offers a few features. The points for determining an invoice to be considered invalid are as follows.
- Failing to write all required contents on the invoice such as invoice name, invoice model number, etc., except in some cases prescribed by law;
- Invoices do not include or incorrectly record one of the items such as name, address, tax code of the seller or supplier;
- Invoices do not include or incorrectly record one of the criteria such as name, address, tax code of the product buyer or service user;
- Name of goods or services; unit of calculation, quantity and unit price of goods and services; into money not written in numbers and words.
- The contents of the invoice must match the arising economic operations; must not be erased or repaired; must use the same ink color, ink does not fade, do not use red ink; Numbers and letters must be continuous, without interruption, without writing or overprinting pre-printed letters.
- The time of issuing invoices must be consistent with regulations such as at the time of transferring ownership, right to use products and goods to the buyer, the time of completion/partial completion of service provision, etc.
- There must be a full signature on the invoice, except in some other cases as prescribed by law.
- Invoices to purchase goods and services each time with a value of 20 million VND or more (price includes VAT) but when paying, use cash.
3. Invoice reasonableness #
An invoice when put into use must not only be legal and valid, but also a reasonable invoice. An invoice is reasonable if the contents shown on the invoice are suitable for the business organization's production and business activities.
Tax authorities always give feedback on the reasonableness and validity of expenses incurred by enterprises in the period to exclude from deductible expenses. Enterprises, if they fail to prove, counter and convince the tax authorities to believe in the logic, rationality, and reality, their expenses will be fixed and tax arrears.
To ensure the validity, enterprises need to have sufficient documents and documents in accordance with the provisions of tax law. To ensure the reasonableness, enterprises need to ensure that the costs incurred are REAL, have a logical basis, are relevant and necessary for production and business activities. And so, the invoice of the business also needs to ensure that the factors are reasonable, real, and convincingly proven to the tax authorities.
B. Documents #
Financial paper are papers and information-carrying objects reflecting the arising and completed economic and financial operations, which serve as the basis for recording accounting books such as contracts (purchase and sale, labor, ...), delivery minutes, vouchers orders, bank documents, bank statements, etc.
1. Accounting vouchers written in foreign languages, when used to record accounting books and prepare financial statements in Vietnam, must be translated into Vietnamese with the main contents specified in Clause 1, Article 16 of the Law on Accounting. . Enterprises must be responsible for the accuracy and completeness of the contents of accounting vouchers translated from foreign languages into Vietnamese. The Vietnamese translation of the accounting voucher must be attached to the original in foreign language.
Accounting vouchers must contain the following principal contents:
a) Name and identification number of the accounting voucher;
b) Date, month and year of making accounting vouchers;
c) Names and addresses of agencies, organizations, units or individuals making accounting vouchers;
d) Names and addresses of agencies, organizations, units or individuals receiving accounting vouchers;
d) Contents of arising economic and financial operations;
e) Quantity, unit price and amount of economic and financial operations recorded in numbers; the total amount of the accounting voucher used to collect and spend money in numbers and words;
g) Signature, full name of the maker, the approver, and persons related to the accounting voucher.
2. In addition to major contents of an accounting voucher specified in Clause 1 of this Article, an accounting voucher may have other details according to each type of voucher.
Like invoices, other documents must also be valid and reasonable. Enterprises need to have enough documents with information prescribed by law. Enterprises also need to ensure that the documents and arising transactions are REAL, have a logical basis, are relevant and necessary for the field they operate.
With important information about valid, reasonable and legal invoices and documents, businesses understand the essence and regulations on invoices. Thereby, enterprises can self-check these factors to ensure the reliability of invoices and documents.
