On May 10, 2023, the General Department of Taxation issued Official Letter 1647/TCT-CS to clarify some issues related to electronic invoices mentioned in Official Letter 3147/CTBNI-TTHT dated September 26, 2022, from the Bac Ninh Provincial Tax Department.
1. Regarding electronic internal warehouse release and transportation slips
According to Clause 6, Article 8 Decree 123/2020/ND-CP The Government's Decree dated October 19, 2020, stipulates: "Documents printed, issued, used, and managed as invoices include internal warehouse release and transportation slips, warehouse release slips for goods consigned to agents, etc." At the same time, Article 19 of Decree 123/2020/ND-CP dated October 19, 2020, of the Government regulates the handling of errors in issued invoices.
Therefore, based on the above regulations, if an electronic internal warehouse release and transportation slip that has been created and sent to the tax authority for code issuance or has data sent to the tax authority contains errors, the taxpayer shall handle the errors according to the principles stipulated in Article 19 of Government Decree 123/2020/ND-CP dated October 19, 2020.
2. How to handle errors in already issued electronic invoices?
2.1. Issuing adjustment or replacement invoices for electronic invoices containing errors.
Based on the provisions of point b, clause 2, Article 19 of Government Decree No. 123/2020/ND-CP, and points c and e, clause 1, Article 7 Circular No. 78 / 2021 / TT-BTC of the Ministry of Finance, at Decision No. 1450/QD-TCT October 7, 2021 and Decision No. 1510/QD-TCT The General Department of Taxation's regulations dated September 21, 2022, stipulate the data components required for electronic invoices, as follows:
- If the seller chooses to process the issued invoice by creating an adjustment invoice, they will adjust the incorrect information in the product line downwards and adjust the correct information upwards accordingly (including: product/service name, unit of measurement, quantity, unit price, tax rate, and total amount before tax).
- If the seller chooses to process the issued invoice by creating a replacement invoice, they will issue a new invoice with the same invoice number, invoice symbol, invoice template symbol, and all the content of the replacement invoice.
For both of the above cases, the adjustment or replacement invoice must include the following information: “Adjustment/replacement for invoice Form No… symbol… number… dated… month… year…” and if an electronic invoice has errors and the seller has processed it by adjusting or replacing it as prescribed in point b, clause 2, Article 19 of Decree No. 123/2020/ND-CP, and then discovers further errors in the invoice, the seller shall follow the same method applied when handling the initial error for subsequent processing.
If a business issues an incorrect electronic invoice (referred to as invoice F0), and then issues an adjustment or replacement invoice (referred to as adjustment/replacement invoice F1 for invoice F0) and discovers that invoice F1 is still incorrect:
- If the adjustment method is chosen: The business issues an F2 invoice to adjust the F0 invoice.
- If the alternative method is chosen: The business issues invoice F2 to replace invoice F1.
For invoices issued in accordance with the provisions of Decree No. 51 / 2010 / ND-CP March 14, 5, Decree No. 04 / 2014 / ND-CP If the Government's Decree dated January 17, 2014, and the guiding documents of the Ministry of Finance contain errors, businesses shall issue replacement invoices in accordance with Clause 6, Article 12. Circular No. 78 / 2021 / TT-BTC On September 17, 2021, the Ministry of Finance agreed with the Tax Department's opinion that businesses are not required to cancel invoices issued under Decree No. 51/2010/ND-CP dated May 14, 2010, and are not required to submit reports on invoice usage because from July 1, 2022, Decree No. 51/2010/ND-CP and Decree No. 04/2014/ND-CP are in effect. Circular No. 39 / 2014 / TT-BTC And the Circulars amending and supplementing Circular No. 39/2014/TT-BTC have ceased to be in effect. The seller shall notify the tax authority using Form 04/SS-HĐĐT issued together with Decree No. 123/2020/NĐ-CP.
2.2. Submit error notification using Form 04/SS-HĐĐT
- According to Clause 2, Article 156 of the Law on the Promulgation of Legal Normative Documents of 2015, in cases where legal normative documents have different provisions on the same issue, the document with higher legal validity shall apply.
- If a business processes invoices with errors in accordance with Clause 1, Point a, Clause 2, Article 19 of Decree No. 123/2020/ND-CP and Clause 6, Article 12 of Circular No. 78/2021/TT-BTC, the business must submit Form 04/SS-HĐĐT to the tax authority.
- If a business processes invoices with errors as stipulated in point b, clause 2, Article 19 of Decree No. 123/2020/ND-CP, the taxpayer is not required to send a notification of errors using Form No. 04/SS-HĐĐT to the tax authority.
3. Regulations regarding invoicing when returning goods
Accordingly, Clause 1, Article 4 of Decree 123/2020/ND-CP stipulates:
Article 4. Principles for the creation, management, and use of invoices and supporting documents.
1. When selling goods or providing services, the seller must issue an invoice to the buyer (including cases where goods and services are used for promotions, advertising, samples; goods and services used for giving, gifting, exchanging, paying as wages to employees, and internal consumption (except for goods circulated internally to continue the production process); exporting goods in the form of loans, borrowing, or returning goods) and must fully record the content as prescribed in Article 10 of this Decree. In the case of using electronic invoices, they must follow the standard data format of the tax authority as prescribed in Article 12 of this Decree.
Clause 1 of Article 8 of Circular 219/2013/TT-BTC dated December 31, 2013 provides guidance as follows:
Article 8. Time of VAT determination
1. For the sale of goods, the time of sale is the moment of transfer of ownership or the right to use the goods to the buyer, regardless of whether payment has been received or not.
Accordingly, in cases where goods are returned as part of a return process, the invoice should be issued in accordance with the regulations mentioned above.