Below are some important points regarding invoices and supporting documents that businesses need to be aware of to avoid errors and ensure the complete collection of invoices and supporting documents.
1. Common mistakes
- Taxpayers who fail to issue invoices and declare value-added tax at the time of receiving payment for unfinished services are acting contrary to the law on invoices and the law on value-added tax (in this case, they are not required to declare revenue for corporate income tax purposes).
- Taxpayers who fail to issue invoices or declare value-added tax at the time of receiving advance payments for multiple periods for property rental activities are acting contrary to the law on invoices and the law on value-added tax (in this case, the taxpayer may choose to declare corporate income tax in one period or allocate it to multiple corresponding periods).
- Taxpayers who fail to issue invoices for goods and services given as promotions or gifts are acting contrary to the law on invoices (in this case, revenue is not required to be declared for corporate income tax purposes).
– Taxpayers who use illegal invoices (invalid invoices, counterfeit invoices, expired invoices), or illegally use invoices (invoices with fictitious content, invoices with discrepancies in value or discrepancies in mandatory criteria between copies, etc.) to claim value-added tax deductions and include them in deductible expenses are violating the law on invoices and the law on value-added tax and corporate income tax; this is manifested in the following forms:
+ Employees in the procurement department who purchase goods and services (real goods and services) without legal documentation then illegally purchase input invoices from organizations or individuals that illegally use invoices (businesses that have absconded) to legitimize and make payments.
+ Individuals who are not registered as businesses; who do not register or declare taxes as required, but sell goods or provide services to businesses (the goods or services are real), but do not have invoices and have illegally purchased invoices from organizations or individuals that use invoices illegally (businesses that have absconded) to provide to businesses.
+ The contractors are construction teams without legal status, carrying out construction projects on a "blank contract" basis. To receive the full contract amount, these construction teams legitimize payment documents by illegally purchasing invoices from organizations or individuals that use invoices illegally (businesses that have absconded) to provide to the contractor.
2. Look up invoice information
To look up information about invalid invoices or issued invoices, please visit the website: https://tracuuhoadon.gdt.gov.vn
The above are general notes on invoices and supporting documents. Businesses with specific activities requiring advice on specific invoice and supporting document requirements should contact Expertis to receive a comprehensive handbook on specific invoice and supporting document requirements for each type of business, such as: construction, trade, complex services, installment sales, transactions with transfer pricing risks, and logistics.
Understanding the guidelines on invoices and supporting documents is a useful guide for businesses to manage their operations transparently.
