To ensure consistent implementation of the General Department of Taxation's guidance on the use of electronic invoices, issued in two previous documents: Official Letter No. 2121/TCT guiding the issuance of invoices in accordance with Government Decree No. 15/2022/ND-CP dated January 28, 2022, and Decree No. 44/2023/ND-CP stipulating the reduction of value-added tax according to Resolution No. 101/2023/QH15 dated June 24, 2023, the Ho Chi Minh City Tax Department sent Official Letter 8999/CT TPHCM-TTHT on July 19th to provide guidance on the following points:
1. Instructions for issuing invoices for goods and services eligible for VAT reduction.
Regarding guidance on how to issue invoices for goods and services subject to value-added tax reduction under Decree No. 44/2023/ND-CP, businesses are requested to comply with Official Letter No. 8732/CT TPHCM-TTHT dated July 12, 2023, from the Tax Department.
Refer to details: Instructions for issuing invoices with reduced VAT according to Decree 44/2023/ND-CP
2. Issue an invoice in case the buyer returns the goods.
When selling goods or providing services, sellers must issue invoices containing all the required information to buyers. Electronic invoices must conform to the standard data format set by the tax authorities.
In the case of selling goods, the seller has issued an invoice, the buyer has received the goods, but the buyer later discovers that the goods are not as specified or of poor quality and returns them, the seller shall issue a return invoice to adjust or replace the previously issued invoice, with the seller and buyer agreeing to clearly state that the goods are being returned.
For goods sold before January 1, 2023, and invoiced with an 8% VAT rate, if the buyer returns the goods after December 31, 2022, due to incorrect specifications or quality, the seller must issue a return invoice to adjust or replace the previously issued invoice with an 8% VAT rate. A clear agreement between the seller and the buyer regarding the returned goods is required.
3. Issue invoices with reduced VAT for goods subject to trade discounts.
If a business applies trade discounts to customers, and for goods subject to a VAT reduction of 8% that were sold in 2022 but invoices showing the trade discounts were only issued from January 1, 2023 onwards, then:
- The discount amount for goods sold is adjusted in the tax base price, with a tax rate of 10%, if the discount amount is applied to the last purchase or the period following December 31, 2022;
- The seller shall issue an adjusted invoice and apply the 8% VAT rate at the time of sale if the discount amount was determined at the end of the discount program after December 31, 2022.
In cases where the Ho Chi Minh City Tax Department's instructions on invoice usage differ from the instructions in Official Letter 2121/TCT-CS dated May 29, 2023, from the General Department of Taxation, businesses shall issue invoices according to the instructions in Official Letter 2121/TCT-CS.