Circular 68/2019/TT-BTC Guiding the issuance of electronic invoices.

1. The deadline for mandatory registration for electronic invoices.

According to Clause 3, Article 26, businesses, economic organizations, other organizations, households, and individuals engaged in business activities are obligated to register to use electronic invoices instead of paper invoices (self-printed invoices, invoices printed on demand, or invoices purchased from the tax authority) from November 1, 2020.

2. Content of the electronic invoice

Clause 1 of Article 3 requires businesses to issue electronic invoices that include the following eight main contents:

1. Invoice name, invoice symbol, invoice form number symbol, invoice number
2. Name, address, and tax identification number of the seller
3. Name, address, and tax identification number of the buyer (if the buyer has a tax identification number)
4. Name, unit of measurement, quantity, unit price of goods and services; total amount excluding value-added tax, value-added tax rate, total value-added tax amount for each tax rate, total value-added tax, total payment amount including value-added tax.
5. Digital signatures, electronic signatures of the seller and the buyer.
6. Time of issuing electronic invoices
7. The tax authority code for electronic invoices includes a tax authority code.
8. Fees and charges belonging to the state budget, trade discounts, and promotions (if any)

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The following table summarizes cases where it is not mandatory to include all the required information on electronic invoices:

3. Time of issuing electronic invoices

► For the sale of goods, provision of services, or multiple deliveries or handover of individual items or service stages.

Applying the provisions of Clauses 1, 2, and 3 of Article 7 of Decree No. 119/2018/ND-CP.

► For electricity, water, telecommunications, television, and information technology services, the service fees are sold on a fixed-term basis.

This must be done no later than 7 days following the date of meter reading for electricity and water consumption, or the end date of the agreed-upon period for the provision of telecommunications, television, and information technology services.

► For construction and installation Register to use

This is implemented at the time of acceptance and handover of the project, project item, or completed construction and installation volume, regardless of whether payment has been received or not.

► For businesses involved in real estate development, infrastructure construction, and building houses for sale or transfer.

○ In cases where ownership or usage rights have not yet been transferred (with payment collected according to the project progress or the payment schedule specified in the contract): the date of payment collection or as agreed upon in the contract.

○ In cases where ownership or usage rights have been transferred: as stipulated in Clauses 1, 2, and 3 of Article 7 of Decree No. 119/2018/ND-CP.

► Purchase air freight services through websites and e-commerce systems established in accordance with international practices.

The process must be completed no later than five (5) days from the date the air transport service certificate is issued on the website and e-commerce system.

► For exploration and production activities of crude oil, condensate, natural gas, associated gas, and coal gas.

The provisions of Clauses 1 and 3 of Article 7 of Decree No. 119/2018/ND-CP shall apply regardless of whether the money has been collected or not.

4. Cases where the use of electronic invoices is discontinued.

According to Clause 1, Article 9 of the Circular, the Tax Authority shall cease issuing electronic invoice codes in the following cases:

The cases stipulated in points a, b, c, and d of Clause 1, Article 15 of Decree No. 119/2018/ND-CP include:

Businesses, economic organizations, other organizations, households, and individual business owners whose tax identification numbers have expired;

+ Businesses, economic organizations, other organizations, households, and individual business owners that the tax authorities have verified and notified are not operating at their registered address;

+ Businesses, economic organizations, other organizations, households, and individuals engaged in business activities must notify the competent state management agency of the temporary suspension of business operations;

+ Businesses, economic organizations, other organizations, households, and individual business owners who have received notification from the tax authority regarding the cessation of electronic invoice usage for the purpose of enforcing tax debt collection;

The cases stipulated in point d, clause 1, Article 15 of Decree No. 119/2018/ND-CP are as follows:

– In cases where the use of electronic invoices with tax authority codes to sell smuggled goods, prohibited goods, counterfeit goods, or goods infringing intellectual property rights is detected by competent authorities and reported to the tax authority;

– In cases where the act of creating electronic invoices with tax authority codes for the purpose of fictitious sales of goods or provision of services to defraud organizations or individuals is detected by competent authorities and reported to the tax authority;

– In cases where the business registration authority or competent state agency requires an enterprise to temporarily suspend business in a conditional business sector or profession upon discovering that the enterprise does not meet the business conditions as prescribed by law.

5. Handling errors in electronic invoices.

✓ In cases where the seller discovers errors in the electronic invoice with the tax authority code that has not yet been sent to the buyer.

+ The seller notifies the tax authority using Form No. 04 of the Appendix issued with Decree No. 119/2018/ND-CP regarding the cancellation of the erroneous electronic invoice with a code and the creation of a new electronic invoice, digitally signed and electronically submitted to the tax authority to obtain a new invoice code to replace the previously issued invoice, and then sends it to the buyer.

+ The tax authority will cancel electronic invoices that have been issued with errors and are stored in the tax authority's system.

✓ In the case where an electronic invoice with a tax authority code has been sent to the buyer and errors are discovered.

a) In case there is an error in the buyer's name or address but the tax identification number is correct and other details are correct:

The seller informs the buyer about the invoice error and notifies the tax authority using Form No. 04 in the Appendix issued with Decree No. 119/2018/ND-CP, and is not required to reissue the invoice;

b) In cases where there are errors in the tax identification number, the amount recorded on the invoice, the tax rate, the tax amount, or the goods listed on the invoice do not meet the specifications or quality standards:

+ The seller and buyer draw up a written agreement clearly stating the error, and the seller notifies the tax authority using Form No. 04 of the Appendix issued with Decree No. 119/2018/ND-CP regarding the cancellation of the electronic invoice and the issuance of a new electronic invoice to replace the erroneous one. + After receiving the notification, the tax authority cancels the erroneous electronic invoice stored in the tax authority's system.

+ A new electronic invoice replacing an previously issued electronic invoice with errors must include the phrase "Replacing invoice with sample number, invoice symbol…invoice number…, date… month… year".

+ The seller digitally signs the new electronic invoice to replace the previously issued electronic invoice that contained errors, then sends it to the tax authority for the tax authority to issue a code for the new electronic invoice.

✓ In the event that the tax authorities discover errors in an electronic invoice that has already been issued a code:

+ The tax authority will notify the seller using Form No. 05 of the Appendix issued with Decree No. 119/2018/ND-CP so that the seller can check for errors.

Within 2 days of receiving the notification from the tax authority, the seller shall notify the tax authority using Form No. 04 of the Appendix issued with Decree No. 119/2018/ND-CP regarding the cancellation of the erroneous electronic invoice with a code and the creation of a new electronic invoice, digitally signed and electronically submitted to the tax authority to obtain a new electronic invoice code to replace the previously issued electronic invoice, to be sent to the buyer as guided in Clause 1 or Clause 02 of the Circular.

+ If the seller does not notify the tax authorities, the tax authorities will continue to inform the seller about the errors in the invoice that has been issued with a code so that the seller can make adjustments or cancel the invoice.

6. Conditions for organizations providing electronic invoicing services

Organizations providing electronic invoicing services must meet the following conditions:

a) Regarding the subject

Experience in developing IT solutions and electronic data exchange solutions between organizations is required, specifically:

– Must have at least 05 years of experience in the information technology field.

– We have implemented information technology systems and applications for at least 10 organizations.

– An electronic data exchange system has been implemented between the company's branches or between different organizations.

b) Regarding finances

There is a guarantee commitment from a legally operating credit institution in Vietnam with a value exceeding VND 5 billion to address risks and compensate for potential damages that may occur during the provision of services.

c) Regarding personnel

– We have a minimum of 20 technical staff with university degrees in information technology, including staff with practical experience in network administration and database administration.

– Technical staff are on duty 24/7 to monitor and check the system to maintain stable operation of the electronic data exchange system and support users of the electronic invoicing service.

d) Technical aspects

– There is a system of equipment, techniques, and procedures for data backup at the main data center as prescribed in point d, clause 1, Article 32 of Decree No. 119/2018/ND-CP.

– There is a backup system of equipment and technology located at a backup center at least 20km away from the main data center, ready to operate when the main system fails.

– Connecting and exchanging electronic invoice data with the tax authorities must meet the following requirements:

+ Connect to the tax authority via a leased line or MPLS VPN Layer 3, including 1 primary and 2 backup lines. Each line has a minimum bandwidth of 10 Mbps.

Use encrypted Web Services or Message Queues (MQ) as the connection method.

+ Use the SOAP protocol to encapsulate and transmit data.

The above information outlines important details regarding the application of electronic invoices that business owners, accountants, and others need to know to comply with legal regulations.  

Download the full PDF version of Circular No. 68/2019/TT-BTC:  Here

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