Official document 5113/TCT-CS provides guidance on some aspects of electronic invoices.

During the implementation of electronic invoices as stipulated in the 2019 Tax Administration Law, Government Decree No. 123/2020/ND-CP dated October 19, 2020, on invoices and documents, and Circular No. 78/2021/TT-BTC dated September 17, 2021, of the Ministry of Finance, the General Department of Taxation received feedback from tax departments and businesses regarding several problematic issues.

The General Department of Taxation is attaching to this document the guidelines for handling certain issues when applying electronic invoices for the Tax Departments to study and apply. In case of difficulties, the Tax Departments are requested to continue to report them so that the General Department of Taxation can study and provide timely guidance./.

APPENDIX

GUIDELINES ON SOME CONTENTS REGARDING ELECTRONIC INVOICES

(Attached is Official Letter No. 5113/TCT-CS dated December 27, 2021, from the General Department of Taxation)

1. Regarding sending the Notification of Receipt and Processing Results regarding Errors in Issued Electronic Invoices (Form 01/TB-SSĐT) to the Taxpayer

Based on the provisions of Article 19 of Government Decree No. 123/2020/ND-CP dated October 19, 2020, on invoices and documents (hereinafter referred to as Decree No. 123/2020/ND-CP):

– In cases where the seller discovers an error in an electronic invoice that has been assigned a code by the tax authority but not yet sent to the buyer, and the seller has complied with the provisions of Clause 1, Article 19 of Decree No. 123/2020/ND-CP, after receiving Form No. 04/SS-HĐĐT sent by the seller, the tax authority shall issue a code for the new electronic invoice prepared by the seller and sent to the tax authority as prescribed, cancel the erroneous electronic invoice that has been assigned a code and stored in the tax authority's system; then the tax authority shall issue a notice on receipt and processing results according to Form No. 01/TB-SSĐT Appendix IB issued with Decree No. 123/2020/ND-CP to send to the seller.

– In cases where an electronic invoice with or without a tax authority code has been sent to the buyer and either the buyer or the seller discovers an error, for the seller as stipulated in point a, clause 2, Article 19 of Decree No. 123/2020/ND-CP, after receiving Form No. 04/SS-HĐĐT sent by the seller, the tax authority shall immediately issue a notice regarding the receipt and processing results according to Form No. 01/TB-SSĐT, Appendix IB issued with Decree No. 123/2020/ND-CP, to be sent to the seller.

– In cases where the tax authority discovers errors in electronic invoices, whether those with or without a tax authority code issued by the seller, the tax authority shall act in accordance with the provisions of Clauses 3 and 4, Article 19 of Government Decree No. 123/2020/ND-CP.

– The head of the tax authority may authorize subordinate officials who are leaders to digitally sign Form No. 01/TB-SSĐT Appendix IB issued with Decree No. 123/2020/NĐ-CP in accordance with the law, to send to taxpayers.

2. Regarding the non-use of invoices already issued under Decree No. 51/2010/ND-CP and Decree No. 04/2014/ND-CP after the taxpayer has successfully registered to use electronic invoices under Decree No. 123/2020/ND-CP and the tax authority has sent an acceptance notice to the taxpayer.

Clause 3, Article 15 of Decree No. 123/2020/ND-CP stipulates:

3. From the moment the tax authority accepts the registration for the use of electronic invoices as stipulated in this Decree, businesses, economic organizations, other organizations, households, and individuals engaged in business must cease using electronic invoices that have been announced for issuance under previous regulations, and destroy any paper invoices that have been announced for issuance but not yet used (if any). The procedures for destruction shall be carried out in accordance with the provisions of Article 27 of this Decree.

Based on the provisions of Clause 2, Article 59 of Government Decree No. 123/2020/ND-CP, and Clause 3, Article 11 of Circular No. 78/2021/TT-BTC dated September 17, 2021 of the Ministry of Finance;

Based on the provisions of Article 29 of Circular No. 39/2014/TT-BTC dated March 31, 2014 of the Ministry of Finance (amended and supplemented by Circular No. 119/2014/TT-BTC dated August 25, 2014 and Circular No. 26/2015/TT-BTC dated February 27, 2015 of the Ministry of Finance);

Based on the above regulations:

– In cases where the tax authority has accepted the registration for the use of electronic invoices as stipulated in Decree No. 123/2020/ND-CP and Circular No. 78/2021/TT-BTC, the enterprise or economic organization (taxpayer) must cease using electronic invoices and destroy the printed paper invoices that have been notified for issuance in accordance with Decree No. 51/2010/ND-CP, Decree No. 04/2014/ND-CP of the Government, and guiding documents of the Ministry of Finance. The procedures for destruction shall be carried out in accordance with Article 27 of Decree No. 123/2020/ND-CP.

– During the period when Circular No. 39/2014/TT-BTC dated March 31, 2014, of the Ministry of Finance is in effect, the Tax Department may instruct taxpayers to submit: Notification of Invoice Cancellation (Form TB03/AC) and Report on Invoice Usage (BC26) as guided in Circular No. 39/2014/TT-BTC dated March 31, 2014, of the Ministry of Finance, so that the tax authority can enter them into the Invoice Management application. At the same time, the tax authority will issue a Notice that the taxpayer's invoices are no longer valid.

3. Regarding the use of accounting software when using electronic invoices with tax authority codes.

The Law on Tax Administration, Decree No. 123/2020/ND-CP, and Circular No. 78/2021/TT-BTC do not stipulate whether taxpayers using electronic invoices with tax authority codes need accounting software connected to the electronic invoice creation software. Therefore, in the case of taxpayers using electronic invoices with tax authority codes, accounting software is not necessarily required. They only need electronic invoice creation software with internet connectivity that can create and send electronic invoices to the tax authority for code issuance and ensure the transmission of electronic invoice data to the buyer.

4. Regarding the registration for simultaneous use of two types of electronic invoices: those with and without tax authority codes.

Clauses 1 and 2 of Article 91 of the 2019 Law on Tax Administration stipulate:

Article 91. Application of electronic invoices when selling goods and providing services

1. Businesses and economic organizations using electronic invoices with tax authority codes when selling goods or providing services, regardless of the value of each sale or service, except as stipulated in Clauses 2 and 4 of this Article.

2. Businesses operating in the fields of electricity, petroleum, postal and telecommunications services, clean water, finance and credit, insurance, healthcare, e-commerce, supermarket business, trade, air, road, rail, sea, and inland waterway transport, and businesses and economic organizations that have or will conduct transactions with tax authorities electronically, build information technology infrastructure, have accounting software systems and electronic invoicing software that meet the requirements for creating, searching, and storing electronic invoice data as prescribed, and ensure the transmission of electronic invoice data to buyers and tax authorities, are allowed to use electronic invoices without tax authority codes when selling goods or providing services, regardless of the value of each sale or service, except in cases of high tax risk as prescribed by the Minister of Finance and in cases where they register to use electronic invoices with tax authority codes.”

Based on the above regulations: Businesses and economic organizations must use electronic invoices with tax authority codes when selling goods or providing services. If a business has multiple business activities: for business activities in the fields or meeting the requirements of Clause 2, Article 91 of the 2019 Tax Administration Law mentioned above, the business registers to use electronic invoices without tax authority codes; for other business activities not in the fields or not meeting the requirements of Clause 2, Article 91 of the 2019 Tax Administration Law mentioned above, the business registers to use electronic invoices with tax authority codes.

The Tax Department is requested to review the situation to determine which businesses need to register to use both types of electronic invoices: those with and without tax authority codes. Initially, the tax authority will guide taxpayers to register for the use of electronic invoices with/without tax authority codes according to the list already classified and entered into the electronic invoice system. Based on the actual implementation, the General Department of Taxation will upgrade the application to ensure that taxpayers can register to use both types of electronic invoices simultaneously. Subsequently, the Tax Department will review and guide taxpayers on the conversion if necessary.

5. Regarding the use of multiple electronic invoices with tax authority codes when requesting invoices for each transaction.

Based on the provisions of Clause 2, Article 13 of Government Decree No. 123/2020/ND-CP dated October 19, 2020, regulating invoices and documents:

In cases where a business is subject to tax debt enforcement measures, such as suspending the use of invoices for goods and services provided to multiple customers, when requesting the issuance of electronic invoices with tax authority codes for each transaction, the business may request the use of multiple electronic invoices at once. The business must pay the full amount of tax due as prescribed or pay 18% of the revenue on the invoices used, as stipulated in point d, clause 4, Article 34 of Government Decree No. 126/2020/ND-CP dated October 19, 2020.

The General Department of Taxation will study and revise the Electronic Invoice Management Procedure issued with Decision No. 1447/QD-TCT dated October 5, 2021, along with other contents, to simplify the steps for issuing invoices based on actual transactions implemented at the Tax Departments.

6. Regarding the situation where the tax authority has notified the taxpayer to use electronic invoices with codes, but the taxpayer has registered to use electronic invoices without codes.

Based on the provisions of Article 91 of the 2019 Law on Tax Administration:

– Upon receiving the registration for using electronic invoices (according to Form No. 01/ĐK HĐĐT issued with Decree No. 123) from taxpayers who are organizations or businesses registering for electronic invoices without a code, the tax authority will compare it with the Notice on the use of invoice forms (with or without a code) already sent to the taxpayer and instruct the taxpayer, if they receive an acceptance notice from the tax authority, to change the registration information for using invoices with a tax authority code and resubmit it to the tax authority in cases where the tax authority has notified the taxpayer to use electronic invoices with a tax authority code.

The e-invoice system has added a function allowing tax authorities to import a list of taxpayers using invoices with codes and verify this condition before generating a notification accepting or rejecting the taxpayer's registration for using electronic invoices. The e-invoice system has also been upgraded to support tax leaders and officials, enabling them to proactively choose whether to accept or reject a taxpayer's registration for using electronic invoices based on the actual processing of such registrations.

– If the taxpayer fails to submit information changes to register for the use of electronic invoices with tax authority codes (in cases where the tax authority has notified the taxpayer to use electronic invoices with tax authority codes), the tax authority will assess the risk level and issue a decision to conduct an on-site inspection at the enterprise's headquarters in accordance with Circular No. 31/2021/TT-BTC dated May 17, 2021, of the Ministry of Finance, which regulates the application of risk in tax management, to verify compliance with the IT infrastructure conditions stipulated in Clause 2, Article 91 of the Law on Tax Administration. If, upon on-site inspection, the taxpayer is found not to meet the conditions for using electronic invoices without tax authority codes, the tax authority will notify the taxpayer in writing, requesting them to switch to using electronic invoices with tax authority codes.

7. Regarding the use of electronic invoices by businesses that share accounting software and invoicing software across their entire system, from the parent company to its branches and subsidiaries.

In the case where a business operates under a parent company model with branches and subsidiaries that share accounting and invoicing software for the entire system from the parent company to the branches and subsidiaries, and the parent company is headquartered in one of the six provinces/cities where e-invoicing is implemented according to the Minister of Finance's Decision, but the branches/subsidiaries are not located in those six provinces/cities, then:

– In cases where the entire enterprise system (Parent Company, Branches, Subsidiaries) meets the conditions regarding industry and IT system as stipulated in Clause 2, Article 91 of the Law on Tax Administration, and the IT system of the entire enterprise system has been upgraded or newly built to meet the requirements for issuing electronic invoices according to Decree No. 123/2020/ND-CP and Circular No. 78/2021/TT-BTC, then the entire enterprise system will register to apply electronic invoices without a tax authority code as decided by the Minister of Finance.

– In cases where the parent company or branch does not meet the business sector and IT system requirements as stipulated in Clause 2, Article 91 of the Law on Tax Administration, they shall use electronic invoices with tax authority codes. The branch will implement this when the parent company implements it according to the tax authority's roadmap.

– In cases where the entire enterprise system (Parent Company, Branches, Subsidiaries) meets the industry requirements but the IT system of the entire enterprise has not been upgraded or newly built to meet the requirements for issuing electronic invoices according to Decree No. 123/2020/ND-CP and Circular No. 78/2021/TT-BTC, depending on the specific situation at the enterprise, the Tax Department will guide the enterprise to apply the regulations based on actual circumstances, while ensuring compliance with the regulations on the subjects to which electronic invoices apply as stipulated in Article 91 of the Law on Tax Administration.