Official document 4144/TCT-CS from the General Department of Taxation introduces the new contents of Circular 78/2021/TT-BTC guiding on invoices and documents.

Dear: Provincial and city tax departments under the central government.

On June 13, 2019, the 14th National Assembly passed Law No. 38/2019/QH14 on Tax Administration, effective from July 1, 2020. The provisions on electronic invoices and documents in this Law will take effect from July 1, 2022; agencies, organizations, and individuals are encouraged to apply the provisions on electronic invoices and documents in this Law before July 1, 2022.

On October 19, 2020, the Government issued Decree No. 123/2020/ND-CP regulating invoices and documents, effective from July 1, 2022.

On September 17, 2021, the Ministry of Finance issued Circular No. 78/2021/TT-BTC guiding the implementation of a number of articles of the Law on Tax Administration and Decree No. 123/2020/ND-CP, effective from July 1, 2022.

The General Department of Taxation introduces the new contents of Circular No. 78/2021/TT-BTC and requests the Tax Departments to promptly disseminate and inform tax officials and taxpayers in their respective areas of management.

(Detailed information is provided in the Appendix attached to this document).

During the implementation process, if any difficulties or obstacles arise, the Tax Departments are requested to promptly compile and report them to the General Department of Taxation for consideration and resolution.

 

Recipients: – As above; – Leaders of the General Department of Taxation; – Departments and units under or directly subordinate to the Corporation; – Save: VT, CS.

Acting Director General DEPUTY DIRECTOR GENERAL Vu Xuan Bach

 

APPENDIX

INTRODUCTION TO NEW CONTENTS IN CIRCULAR NO. 78/2021/TT-BTC DATED SEPTEMBER 17, 2021 OF THE MINISTRY OF FINANCE ON INVOICES AND DOCUMENTS
(Attached is Official Letter No. 4144/TCT-CS dated October 28, 2021, from the General Department of Taxation)

1. Regarding the application of electronic invoices and documents: Implemented in accordance with Chapter X of the Law on Tax Administration.

2. Regarding the management and use of invoices when selling goods or providing services; the management and use of documents when carrying out tax procedures, collecting fees and charges; and regulations on the duties, powers, and responsibilities of agencies, organizations, and individuals in managing and using invoices and documents: In accordance with the provisions of Government Decree No. 123/2020/ND-CP dated October 19, 2020.

3. New provisions in Circular No. 78/2021/TT-BTC:

3.7. Regarding the authorization to issue electronic invoices as stipulated in Article 3 of Circular No. 78/2021/TT-BTC

Clause 7, Article 4 of Decree No. 123/2020/ND-CP dated October 19, 2020, stipulates the delegation of authority for issuing electronic invoices (e-invoices) and assigns the Ministry of Finance to provide specific guidance.[1].

The content of the authorization to establish electronic invoices in Article 3 of Circular No. 78/2021/TT-BTC is as follows:

– The third party (the party authorized to issue the electronic invoice) is a party affiliated with the seller, is eligible to use the electronic invoice, and is not subject to the suspension of electronic invoice use.

The related party relationship is defined according to Clause 2, Article 5 of Government Decree No. 132/2020/ND-CP dated November 5, 2020, regulating tax management for enterprises with related party transactions.[2].

Cases for discontinuing the use of electronic invoices are stipulated in Clause 1, Article 16 of Decree No. 123/2020/ND-CP.[3].

– Electronic invoices issued by the authorized party may or may not have a tax authority code and must show the name, address, and tax code of the authorizing party and the name, address, and tax code of the authorized party, and must accurately reflect actual transactions.

In cases where the authorized invoice is an electronic invoice without a tax authority code, the authorizing party is responsible for transferring the electronic invoice data, either directly or through a service provider, to the tax authority that directly manages it.

– The authorization must be in writing (authorization contract or authorization agreement) between the two parties and must include the following information:

+ Information about the authorizing party and the authorized party (name, address, tax identification number, digital certificate);

+ Information about the authorized electronic invoice (invoice type, invoice symbol, invoice form number symbol);

+ Purpose of authorization;

+ Duration of authorization;

+ Payment method: Authorized invoice (clearly stating the responsibility for paying for goods and services on the authorized invoice);

– The authorization is defined as a change in the registration information for using electronic invoices; therefore, both the authorizing party and the authorized party must register (notify) with the tax authority as stipulated in Article 15 of Decree No. 123/2020/ND-CP on the authorization of electronic invoice issuance, including cases of early termination of the authorization to issue electronic invoices by agreement between the parties. The parties shall fill in the relevant information regarding the digital certificate, name, and tax code in Parts 5 and 6 of Form No. 01ĐKTĐ/HĐĐT issued with Decree No. 123/2020/ND-CP.

– Responsibilities of the principal and the agent:

+ When authorizing the issuance of electronic invoices: the parties must post on their respective websites or publicly announce through mass media so that buyers are aware of the authorization to issue invoices;

+ Upon expiration of the authorization period or early termination of the authorization period as agreed upon by the parties, both parties shall cancel the postings and announcements on their respective websites or public announcements in the mass media regarding the authorization to issue invoices;

3.2. Regarding the sample number symbol, invoice symbol, and invoice series name as stipulated in Article 4 of Circular No. 78/2021/TT-BTC.

3.2.1. For electronic invoices

– The electronic invoice number symbol is a single-digit natural number (1, 2, 3, 4, 5, 6) to reflect the type of electronic invoice, such as: Value-added tax electronic invoice; Sales electronic invoice; Electronic invoice for the sale of public assets; Electronic invoice for the sale of national reserve goods; Other electronic invoices such as electronic stamps, electronic tickets, electronic cards, electronic receipts, or other electronic documents with different names but containing the content of an electronic invoice as stipulated in Decree No. 123/2020/ND-CP; Electronic documents used and managed like invoices include electronic internal warehouse release and transportation slips, and electronic consignment goods release slips.

– The electronic invoice symbol is a group of 6 characters, including both letters and numbers, representing the following information:

+ The first character is a (01) letter specified as C or K as follows: C represents an electronic invoice with a tax authority code, K represents an electronic invoice without a code;

+ The next two characters are two (02) Arabic numerals representing the year of electronic invoice issuance determined by the last two digits of the Gregorian calendar year.

+ The next character is a (01) letter specified as T, D, L, M, N, B, G, H representing the type of electronic invoice used.

+ The last two characters are letters determined by the seller based on their management needs. If the seller uses multiple electronic invoice templates within the same invoice type, they use the above last two characters to distinguish the different invoice templates within the same type. If there is no need for management, they can leave it as YY;

3.2.2. For invoices printed by the tax authority.

– The invoice template code printed by the Tax Department is a group of 11 characters representing information about: the name of the invoice type, the serial number, and the template number within an invoice type (an invoice type may have multiple templates). Specifically as follows:

+ The first six (06) characters represent the name of the invoice type: 01GTKT - Value Added Tax Invoice; 02GTTT - Sales Invoice; 07KPTQ - Sales Invoice for organizations and individuals in non-taxable zones; 03XKNB - Internal Warehouse Release and Transportation Slip; 04HGDL - Warehouse Release Slip for goods consigned to agents.

+ One (01) character followed by natural numbers 1, 2, 3 representing the invoice number;

+ One (01) character after that is “/” to separate;

+ The next three (03) characters are the serial number of the template in a type of invoice, starting with 001 and up to 999.

– The invoice symbol printed by the Tax Department is a group of 08 characters representing information about: the Tax Department that printed the invoice; the year the invoice was printed; and the invoice symbol determined by the tax authority based on management needs, specifically as follows:

+ The first two (02) characters represent the Tax Department's code for printing invoices and are determined according to Appendix IA issued with Circular No. 78/2021/TT-BTC;

+ The next two (02) characters are two letters from the 20 uppercase letters of the Vietnamese alphabet including: A, B, C, D, E, G, H, K, L, M, N, P, Q, R, S, T, U, V, X, Y representing the invoice symbol determined by the tax authority based on management needs;

+ One (01) character after that is “/” to separate;

+ The next three (03) characters consist of the first two (02) characters which are two Arabic numerals representing the year the Tax Department printed the invoice, determined by the last two digits of the calendar year and one (01) character which is the letter P representing the invoice printed by the Tax Department.

– The invoice copies printed by the Tax Department are the sheets within the same invoice number. Each invoice number has 3 copies: Copy 1: For filing; Copy 2: For the buyer; Copy 3: For internal use.

– The invoice numbering system, which is a stamp, ticket, or card printed by the Tax Department, consists of 03 characters to distinguish whether the stamp, ticket, or card is a value-added tax invoice or a sales invoice, as follows:

– Symbol 01/: for stamps, tickets, and cards classified as VAT invoices;

– Symbol 02/: for stamps, tickets, and cards that are considered sales invoices.

3.3. Regarding the conversion to electronic invoices with tax authority codes as stipulated in Article 5 of Circular No. 78/2021/TT-BTC

3.3.1. Taxpayers currently using electronic invoices without a tax authority code who wish to switch to electronic invoices with a tax authority code must update their electronic invoice usage information in accordance with Article 15 of Decree No. 123/2020/ND-CP.

The entities using electronic invoices without a tax authority code are defined according to Clause 2, Article 91 of the 2019 Law on Tax Administration.4.

When changing information on invoice usage, taxpayers submit Form No. 01DKTD/HDDT issued with Decree No. 123/2020/ND-CP to the tax authority and select "Invoice with tax authority code" in Part 1 "Invoice form" on Form No. 01DKTD/HDDT.

3.3.2. Taxpayers who are eligible to use electronic invoices but do not have a tax authority code (as determined according to Clause 2, Article 91 of the 2019 Law on Tax Administration).⁴If a taxpayer falls under the high-risk category for tax purposes as stipulated in Circular No. 31/2021/TT-BTC dated May 17, 2021, of the Ministry of Finance on the application of risk in tax management, and is notified by the tax authority, the taxpayer must switch to using electronic invoices with a tax authority code.

Within ten (10) working days from the date the tax authority issues the notice, the taxpayer must change the information on the use of electronic invoices (switch from using electronic invoices without a code to electronic invoices with a tax authority code) as prescribed in Article 15 of Decree No. 123/2020/ND-CP by sending Form No. 01DKT/HDDT issued together with Decree No. 123/2020/ND-CP to the tax authority and select “Invoice with tax authority code” in Part 1 “Invoice form” on Form No. 01DKT/HDDT and comply with the notice of the tax authority.

After 12 months from the date of switching to using electronic invoices with tax authority codes, if the taxpayer wishes to use electronic invoices without codes, the taxpayer must declare the change in information for using electronic invoices as prescribed in Article 15 of Decree No. 123/2020/ND-CP (the taxpayer submits Form No. 01DKTD/HDDT issued with Decree No. 123/2020/ND-CP and selects "Invoices without tax authority codes" in Part 1 "Invoice form"). The tax authority will base its decision on the subjects and conditions for using electronic invoices without tax authority codes as stipulated in Clause 2, Article 91 of the Law on Tax Administration.⁴ and in accordance with Circular No. 31/2021/TT-BTC dated May 17, 2021, of the Ministry of Finance, which stipulates the application of risk in tax management to consider and decide whether or not to approve the registration for using electronic invoices without a code for taxpayers.

3.4. Application of electronic invoices to other cases as guided in Article 6 of Circular No. 78/2021/TT-BTC

Clause 4, Article 13 of Decree No. 123/2020/ND-CP stipulates that the Ministry of Finance shall provide guidance on the application of electronic invoices to some other cases (in addition to the eight (08) cases specified in Clause 3, Article 13 of Decree No. 123/2020/ND-CP) as required for management.

Article 6 of Circular No. 78/2021/TT-BTC guiding the transfer of electronic invoice data without codes to tax authorities, the transfer of invoice data for petroleum businesses, the application of electronic invoices for household businesses, and the provision of banking services is as follows:

3.4.1. Regarding the transfer of electronic invoice data without a code to the tax authority:

After creating and sending an electronic invoice to the buyer, the seller must simultaneously send the electronic invoice to the tax authority, no later than the same day the invoice is sent to the buyer.

Sending electronic invoices without a tax authority code to the buyer is carried out in accordance with the provisions of point a.2, clause 3, Article 22 of Decree No. 123/2020/ND-CP.5.

3.4.2. For petroleum businesses: Sellers must transfer petroleum sales invoice data to the tax authorities on the same day as stipulated in point a.1, clause 3, Article 22 of Decree No. 123/2020/ND-CP.6.

In cases where the seller and buyer agree to facilitate the flow of goods or data retrieval, the seller, after creating a complete electronic invoice with all the necessary information, shall send it to the buyer and simultaneously send it to the tax authority.

3.4.3. Household businesses and individual businesses using electronic invoices include:

– Household businesses and individual business owners paying taxes using the declaration method must use electronic invoices;

– For household businesses and individual business owners paying taxes using the lump-sum method, if they request to use invoices, the tax authority will issue individual electronic invoices for each transaction.

– For household businesses and individual business owners who file tax returns on a transaction-by-transaction basis, if they request to use invoices, the tax authorities will issue individual electronic invoices for each transaction.

3.4.4. For banking services:

– The invoice date is determined periodically according to the contract between the banking service provider and the customer, but no later than the last day of the month in which the service activity occurs. The documents accompanying the invoice are a statement or other supporting document signed by both parties.

– In cases where banking services are provided in large quantities and frequently, requiring time for data reconciliation between the bank and relevant third parties (payment organizations, international card organizations, or other organizations), the invoice date is the date the data reconciliation between the parties is completed, but no later than the 10th day of the month following the month in which the service occurred.

3.5. Handling errors in certain cases

Article 19 of Decree No. 123/2020/ND-CP stipulates the handling of errors in issued electronic invoices (first-time handling).

Article 7 of Circular No. 78/2021/TT-BTC provides guidance on continuing to handle errors in electronic invoices in subsequent instances if errors persist after the initial processing, and on handling the summary table of electronic invoice data in cases of errors, missing invoice data, or the need for adjustments. Specifically, it states:

3.5.1. Principles for handling erroneous electronic invoices:

– In cases where an issued electronic invoice contains errors and requires a reissue of a tax authority code, or where an erroneous electronic invoice needs to be processed through adjustment or replacement, the seller may choose to notify the adjustment for each erroneous invoice or to notify the adjustment in a general manner. for much Electronic invoices containing errors can be submitted to the tax authorities at any time, but no later than the last day of the value-added tax declaration period in which the adjusted electronic invoice was issued.

The seller uses Form No. 04/SS-HĐĐT in Appendix IA issued with Decree No. 123/2020/NĐ-CP to notify the tax authority about the adjustment of invoices with errors.

– In cases where the seller issues an invoice upon receiving payment in advance or during the provision of services, and subsequently cancels or terminates the provision of services, the seller must cancel the issued electronic invoice and notify the tax authorities of the cancellation.

– If an electronic invoice has been issued with errors and the seller has corrected or replaced it, but then discovers further errors in the invoice, the seller will follow the same procedure used when correcting the initial error for subsequent corrections.

– In cases where, according to regulations, an electronic invoice is issued without a sample invoice number symbol, an invoice symbol, or if there are errors in the invoice number, the seller may only make adjustments and not cancel or replace it;

– For errors in the value on electronic invoices: adjustments should be made upwards (marked with a positive sign) or downwards (marked with a negative sign) to reflect the actual adjustment.

3.5.2. For cases where the electronic invoice data summary table is missing data, contains errors, or requires invoice adjustments on the data summary table.

– After the deadline for submitting the summary of electronic invoice data to the tax authority, if any missing electronic invoice data is found in the summary of electronic invoice data already submitted to the tax authority, the seller must submit a supplementary summary of electronic invoice data.

– If the summary of electronic invoice data submitted to the tax authority contains errors, the seller must submit correction information for the details declared in the summary.

– When adjusting invoices on the electronic invoice data summary table, all the following information must be filled in: invoice form number symbol, invoice symbol, invoice number (except in cases where electronic invoices do not necessarily require the full information of invoice form number symbol, invoice symbol, and invoice number).

3.5.3. The submission of supplementary tax returns related to adjusted or replacement electronic invoices (including canceled electronic invoices) shall be carried out in accordance with the provisions of tax administration law.

3.6. Electronic invoices are generated from cash registers as stipulated in Article 8 of Circular No. 78/2021/TT-BTC.

3.6.1. Applicable subjects:

Businesses, households, and individuals paying taxes using the declaration method are currently using electronic invoices with or without tax authority codes, but they provide goods and services directly to consumers according to business models (shopping malls; supermarkets; retail of consumer goods; food and beverage; restaurants; hotels; retail of pharmaceuticals; entertainment and other services). Due to the large and continuous number of invoices issued, for convenience in invoice creation, taxpayers may choose to use cash registers to apply electronic invoices generated from cash registers with electronic data transfer connections to the tax authority for the above-mentioned business activities, or continue using electronic invoices with or without codes as currently applied.

3.6.2. Principles:

– Electronic invoices generated from cash registers connected to the tax authority for electronic data transfer are issued a security code by the tax authority as stipulated in Article 11 of Decree No. 123/2020/ND-CP as follows:

+ Electronic invoices printed from cash registers connected to the tax authority via electronic data transfer are identifiable as e-invoices with a tax authority code. The tax authority code on e-invoices generated from cash registers is automatically assigned to each business establishment according to a character range, ensuring no duplication. Taxpayers are responsible for using the tax authority code character range continuously and uniquely when creating e-invoices generated from cash registers;

+ A digital signature is not required;

+ Expenses for purchasing goods and services using invoices (or photocopies of invoices or information retrieved from the General Department of Taxation's electronic portal regarding invoices) generated from cash registers are considered expenses with sufficient legal invoices and documents when determining tax obligations.

– The content of an electronic invoice with a tax authority code, generated from a cash register connected to the tax authority via electronic data transfer, includes the following information: Name, address, and tax code of the seller; Buyer's information if requested by the buyer (personal identification number or tax code); Name of goods/services, unit price, quantity, and total payment amount. In the case of organizations or businesses paying tax using the deduction method, the invoice must clearly state the selling price excluding VAT, the VAT rate, the VAT amount, and the total payment amount including VAT; the time of invoice issuance; and the tax authority code.

3.6.3. Responsibilities of taxpayers

When using electronic invoices generated from a cash register, taxpayers should:

+ Register to use electronic invoices as prescribed in Article 15 of Decree No. 123/2020/ND-CP.

+ Issue invoices to customers. The invoices must comply with the principles in Article 11 of Decree No. 123/2020/ND-CP and Clause 3, Article 8 of Circular No. 78/2021/TT-BTC.

+ Use the character range provided by the tax authority when creating electronic invoices generated from cash registers to ensure continuity and uniqueness.

+ Transfer electronic invoice data from the cash register to the tax authority on the same day through an organization providing electronic data receiving, transmission, and storage services.

3.6.4. The data components, transmission methods, and implementation roadmap for electronic invoices generated from cash registers shall follow the guidance of the tax authorities.

3.7. Use receipts and documents as prescribed in Article 9 of Circular No. 78/2021/TT-BTC.

3.7.1. Regarding the use of tax receipts issued by the tax authorities.

– The Tax Department prints, creates, and issues tax receipt form CTT50 in printed, self-printed, or electronic form for use in collecting taxes, fees, and charges from households and individual businesses in the area that meet the conditions for using receipts, and for collecting debts from households under the lump-sum tax system, and collecting land use tax for agricultural and non-agricultural land from households and individuals.

– Criteria for determining areas eligible to use tax receipts; Areas eligible to use tax receipts are those that simultaneously meet three conditions: no collection points, no tax collection authorization, and are located in difficult or extremely difficult areas as defined by regulations on commune-level administrative units in difficult regions. The District Tax Office and Regional Tax Offices are responsible for identifying and updating the list of areas eligible to use tax receipts and submitting it to the Provincial Tax Department for approval.

3.7.2. Cases where other types of documents are used or certain content criteria on the receipt are adjusted.

– During the process of managing taxes, fees, and charges as prescribed by the Law on Tax Administration, if an organization needs to use other types of documents as prescribed in Clause 2, Article 30 of Decree No. 123/2020/ND-CP, the organization shall send a written request to the Ministry of Finance (General Department of Taxation) for approval and implementation.

– For organizations collecting fees and charges using electronic receipts, if adjustments to certain content criteria on the receipt are necessary as stipulated in Clause 2, Article 32 of Decree No. 123/2020/ND-CP, the organization must submit a written request to the Ministry of Finance (General Department of Taxation) for approval and implementation.

3.8. Criteria for organizations providing electronic invoice services to sign contracts for providing electronic invoice services with tax authority codes and services for receiving, transmitting, storing invoice data and other related services as stipulated in Article 10 of Circular No. 78/2021/TT-BTC.

3.8.1. For organizations providing electronic invoicing solutions with tax authority codes and without codes for sellers and buyers.

Selection criteria:

– Regarding the subject: As an organization operating in the field of information technology and established under Vietnamese law, information about electronic invoicing services is publicly available on the organization's website.

– Regarding personnel: There must be at least 5 staff members with a university degree in information technology.

– Technically: The technical infrastructure, information technology equipment, and software systems meet the following requirements: Providing solutions for creating, processing, and storing electronic invoice data with tax authority codes and electronic invoices without codes for sellers and buyers in accordance with the law on electronic invoices and other relevant laws; Providing solutions for receiving and transmitting electronic invoice data with service users; providing solutions for transmitting and receiving electronic invoice data with the tax authority through an organization that receives, transmits, and stores electronic invoice data. Information on the data reception and transmission process must be logged for reconciliation purposes; Providing solutions for backing up, restoring, and securing electronic invoice data; Providing documentation of successful technical testing results for the electronic invoice data transmission and reception solution with the organization providing the electronic invoice data reception, transmission, and storage service.

Procedure for uploading information to the General Department of Taxation's electronic portal:

– Organizations providing electronic invoicing solutions must submit documentation proving they meet the criteria, including a service description and a commitment to implementation, to the General Department of Taxation. Within 10 days of receiving the documentation, the General Department of Taxation will publicly post the service description and commitment of the organization on its electronic portal.

– Organizations are responsible for the documentation they provide. During operation, if an organization is found to be providing services in violation of regulations, the General Department of Taxation will notify and cancel the organization's public information on the General Department of Taxation's electronic portal.

3.8.2. For organizations providing services for receiving, transmitting, and storing electronic invoice data.

Selection criteria:

– Regarding the subject: The organization must be legally established in Vietnam and have at least 05 years of experience in the information technology sector; information about its electronic invoicing services must be publicly available on the organization's website.

– Regarding finances: There must be a deposit at a legally operating bank in Vietnam or a guarantee from a legally operating bank in Vietnam with a value of not less than VND 5 billion to address risks and compensate for damages that may occur during the provision of services;

– Regarding personnel: There must be at least 20 employees with a university degree in information technology.

– Technically: The technical infrastructure, information technology equipment, and software systems meet the following requirements: Providing solutions for creating, processing, and storing electronic invoice data with tax authority codes in accordance with the law on electronic invoices and other relevant laws; providing solutions for connecting, receiving, transmitting, and storing electronic invoice data with organizations providing electronic invoice services with and without tax authority codes for sellers and buyers; and providing solutions for connecting, receiving, transmitting, and storing electronic invoice data with the tax authority. Information on the data reception and transmission process must be logged for reconciliation purposes; the technical equipment system providing electronic invoice services operates in a primary data center and a backup data center. The backup center is located at least 20km away from the primary data center and is ready to operate when the primary system fails. The system is capable of detecting, alerting, and preventing unauthorized access and network attacks to ensure the security and integrity of data exchanged between participating parties; it has a data backup and recovery system; it connects to the General Department of Taxation via a leased line or MPLS VPN Layer 3 or equivalent, including one primary and two backup lines. Each line has a minimum bandwidth of 20 Mbps; it uses Web Service or encrypted Queue as the connection method; and it uses SOAP/TCP protocols for data encapsulation and transmission.

Procedure for signing a contract with the General Department of Taxation:

Organizations that fully meet the requirements must submit a written request to the General Department of Taxation for a service contract to receive, transmit, and store invoice data, along with supporting documents. Within 10 working days from the date the organization provides complete supporting documents, the General Department of Taxation will coordinate with the organization to establish a technical connection and verify data transmission between the two parties. After a successful connection, the General Department of Taxation and the organization will sign a service contract for receiving, transmitting, and storing invoice data with the tax authority. Information about the connected organization will be publicly available on the General Department of Taxation's electronic portal.

3.9. Effective date of the provisions in Article 11 of Circular No. 78/2021/TT-BTC

Circular No. 78/2021/TT-BTC takes effect from July 1, 2022.

– Electronic invoices are applicable to household businesses and individual businesses from July 1, 2022. This excludes household businesses and individual businesses as stipulated in Clause 1, Article 14 of Decree No. 123/2020/ND-CP.7 if They do not conduct transactions with the tax authorities electronically, lack information technology infrastructure, do not have an accounting software system, and do not have electronic invoicing software to use electronic invoices and to transmit electronic data to buyers and to the tax authorities. then Businesses using paper invoices issued by the tax authority will be allowed to use them for a maximum of 12 months, while the tax authority will implement solutions to gradually transition to electronic invoices. This maximum period of 12 months is calculated once from July 1, 2022, for household businesses and individual businesses operating before July 1, 2022; or from the date of registration for the use of invoices for newly established household businesses and individual businesses from July 1, 2022.

– From July 1st, 2022, the following Circulars and Decisions of the Ministry of Finance ceased to be in effect:

+ Decision No. 30/2001/QD-BTC dated April 13, 2001, of the Ministry of Finance on the promulgation of regulations on printing, issuing, managing, and using tax forms;

+ Circular No. 191/2010/TT-BTC dated December 1, 2010, guiding the management and use of transportation invoices;

+ Circular No. 32/2011/TT-BTC dated March 14, 2011, of the Ministry of Finance guiding the creation, issuance, and use of electronic invoices for the sale of goods and provision of services;

+ 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);

+ Decision No. 1209/QD-BTC dated June 23, 2015, of the Minister of Finance on piloting the use of electronic invoices with authentication codes from the tax authority, and Decision No. 526/QD-BTC dated April 16, 2018, of the Minister of Finance on expanding the scope of the pilot use of electronic invoices with authentication codes from the tax authority;

+ Decision No. 2660/QD-BTC dated December 14, 2016, of the Minister of Finance on extending the implementation of Decision No. 1209/QD-BTC dated June 23, 2015;

+ Circular No. 303/2016/TT-BTC dated November 15, 2016, of the Ministry of Finance guiding the printing, issuance, management, and use of various types of receipts for fees and charges belonging to the state budget;

+ Circular No. 37/2017/TT-BTC dated April 27, 2017 of the Ministry of Finance amending and supplementing 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);

+ Circular No. 68/2019/TT-BTC dated September 30, 2019, of the Ministry of Finance guiding the implementation of a number of articles of Decree No. 119/2018/NĐ-CP dated September 12, 2018, of the Government regulating electronic invoices;

+ Circular No. 88/2020/TT-BTC dated October 30, 2020, amending and supplementing Article 26 of Circular No. 68/2019/TT-BTC dated September 30, 2019, of the Ministry of Finance guiding the implementation of a number of articles of Decree No. 119/2018/NĐ-CP dated September 12, 2018, of the Government on electronic invoices.

3.10. Transitional provisions as stipulated in Article 12 of Circular No. 78/2021/TT-BTC

– Businesses and economic organizations that have notified the issuance of pre-printed invoices, self-printed invoices, or electronic invoices without codes, or have registered to use electronic invoices with codes from the tax authority, and have purchased invoices from the tax authority before the issuance of Circular No. 78/2021/TT-BTC, may continue to use their current invoices from the date of issuance of Circular No. 78/2021/TT-BTC until June 30, 2022, and carry out invoice procedures as prescribed in Government Decrees No. 51/2010/ND-CP dated May 14, 2010 and No. 04/2014/ND-CP dated January 17, 2014, regulating invoices for the sale of goods and provision of services.

From the date Circular No. 78/2021/TT-BTC was issued until June 30, 2022, for localities that have met the infrastructure requirements for implementing electronic invoices as per the Ministry of Finance's Decision and based on the General Department of Taxation's request, businesses in those localities are responsible for converting to electronic invoices as stipulated in this Circular according to the schedule announced by the tax authorities. In cases where businesses do not yet meet the information technology infrastructure requirements but continue to use invoices in the aforementioned forms, they must submit invoice data to the tax authorities using Form No. 03/DL-HĐĐT, Appendix IA, issued with Decree No. 123/2020/NĐ-CP, along with submitting their value-added tax return. The tax authorities receive invoice data from businesses to include in the invoice database and publish it on the General Department of Taxation's electronic portal for invoice data lookup.

– For newly established businesses during the period from the date Circular No. 78/2021/TT-BTC was issued until June 30, 2022, if the tax authority notifies the business to apply electronic invoices according to the regulations in Decree No. 123/2020/ND-CP, Decree No. 119/2018/ND-CP dated September 12, 2018, Circular No. 63/2019/TT-BTC and Circular No. 78/2021/TT-BTC, the business shall comply with the guidance of the tax authority. In cases where the information technology infrastructure requirements are not met, but the business continues to use invoices as stipulated in Government Decrees No. 51/2010/ND-CP dated May 14, 2010 and No. 04/2014/ND-CP dated January 17, 2014 on invoices for the sale of goods and provision of services, the procedures shall be the same as those for the aforementioned businesses.

– For invoices printed by the tax authority in accordance with Decree No. 51/2010/ND-CP dated May 14, 2010 and Decree No. 04/2014/ND-CP dated January 17, 2014 of the Government on invoices for the sale of goods and provision of services, if the invoice symbol and invoice form number symbol are the same as the guidance in this Circular and the content is consistent with the provisions of Decree No. 123/2020/ND-CP dated October 19, 2020 of the Government, the tax authority may use the printed invoices to sell to eligible invoice buyers from July 1, 2022 as stipulated in Article 23 of Decree No. 123/2020/ND-CP dated October 19, 2020 of the Government.

– Receipts for fees and charges, as guided by Circular No. 303/2016/TT-BTC dated November 15, 2016, of the Ministry of Finance, guiding the printing, issuance, management, and use of various types of receipts for collecting fees and charges belonging to the state budget, and tax receipts printed according to Decision No. 30/2001/QĐ-BTC dated April 13, 2001, of the Ministry of Finance on the promulgation of the regime for printing, issuing, managing, and using tax forms, may continue to be used. If all tax receipts and fee/charge receipts according to the guided forms in the aforementioned documents are used up, the forms prescribed in Decree No. 11/2020/NĐ-CP dated January 20, 2020, of the Government, regulating administrative procedures in the field of state treasury, shall be used. In cases where the tax authority announces the conversion to the application of electronic receipts in the format prescribed by the tax authority, the organization shall implement the conversion and register for use, notify the issuance, and report on the usage situation in accordance with the guidelines in Articles 34, 36, and 38 of Government Decree No. 123/2020/ND-CP.

– The use of personal income tax withholding certificates will continue to be implemented according to Circular No. 37/2010/TT-BTC dated March 18, 2010 of the Ministry of Finance guiding the issuance, use, and management of self-printed personal income tax withholding certificates (and its amendments and supplements) and Decision No. 102/2008/QD-BTC dated November 12, 2008 of the Minister of Finance on the promulgation of the personal income tax collection certificate mẫu until June 30, 2022. In cases where organizations withholding personal income tax meet the conditions regarding information technology infrastructure, they may apply the electronic form of personal income tax withholding certificates as stipulated in Decree No. 123/2020/ND-CP before July 1, 2022, and follow the procedures guided in Circular No. 37/2010/TT-BTC. March 18, 2010, from the Ministry of Finance.

– From the time businesses, organizations, households, and individuals conducting business use electronic invoices as prescribed in Government Decree No. 123/2020/ND-CP and Circular No. 78/2021/TT-BTC, if an invoice issued according to the regulations in Government Decree No. 51/2010/ND-CP dated May 14, 2010, Government Decree No. 04/2014/ND-CP dated January 17, 2014, and guiding documents of the Ministry of Finance is found to contain errors, the seller and buyer must prepare a written agreement clearly stating the errors. The seller must notify the tax authority using Form No. 04/SS-HĐĐT issued with Government Decree No. 123/2020/ND-CP and issue a new electronic invoice (either an electronic invoice with a tax authority code or an electronic invoice without a code) to replace the previously issued invoice. There is an error. The electronic invoice replacing the erroneous invoice must include the phrase "Replacing invoice Form No… symbol… number… dated… month… year". The seller digitally signs the new electronic invoice replacing the erroneous invoice (invoices issued according to Government Decree No. 51/2010/ND-CP, Decree No. 04/2014/ND-CP and guiding documents of the Ministry of Finance) to send to the buyer (in the case of using electronic invoices without a code) or the seller sends it to the tax authority to obtain a code for the replacement electronic invoice (in the case of using electronic invoices with a code from the tax authority).

 

 

[1] Clause 7, Article 4 of Decree No. 123/2020/ND-CP stipulates:

7. Businesses, economic organizations, and other organizations that sell goods or provide services may authorize a third party to issue electronic invoices for their sales and services. Invoices issued by third parties must still show the name of the authorizing entity. The authorization must be documented in writing between the authorizing party and the authorized party, clearly stating all information about the authorized invoice (purpose of authorization; duration of authorization; method of payment for the authorized invoice) and must be notified to the tax authority when registering for the use of electronic invoices. If the authorized invoice is an electronic invoice without a tax authority code, the authorizing party must transfer the electronic invoice data to the tax authority through the service provider. The Ministry of Finance will provide specific guidance on this matter.”

 

[2] Clause 2, Article 5 of Decree No. 132/2020/ND-CP dated November 5, 2020 stipulates:

2. The affiliated parties referred to in paragraph 1 of this article are specifically defined as follows:

a) One business directly or indirectly holds at least 25% of the owner's equity of the other business;

b) Both businesses have at least 25% of their owner's equity held directly or indirectly by a third party;

c) One enterprise is the largest shareholder in terms of owner's equity and directly or indirectly holds at least 10% of the total shares of the other enterprise;

d) An enterprise guarantees or lends capital to another enterprise in any form (including third-party loans secured by related-party financing and similar financial transactions) provided that the loan amount is at least 25% of the owner's equity of the borrowing enterprise and accounts for more than 50% of the total value of the borrowing enterprise's medium and long-term debts;

d) An enterprise designates a member of the executive board or controlling entity of another enterprise, provided that the number of members designated by the first enterprise accounts for more than 50% of the total number of members of the executive board or controlling entity of the second enterprise; or a member designated by the first enterprise has the right to decide on the financial or operational policies of the second enterprise;

e) Two businesses have more than 50% of their board members or have a board member with the authority to decide on financial or business policies designated by a third party;

g) Two businesses are managed or controlled in terms of personnel, finance, and business operations by individuals who are related to one of the following: spouse, biological parents, adoptive parents, stepfather, stepmother, parents-in-law; biological children, adopted children, stepchildren of the spouse, daughter-in-law, son-in-law; siblings with the same parents, half-siblings, half-siblings; brother-in-law, sister-in-law, daughter-in-law, son-in-law of a person with the same parents or half-siblings; paternal grandparents; grandchildren; aunts, uncles, and nieces/nephews.

h) Two business establishments have a head office and permanent establishment relationship, or both are permanent establishments of a foreign organization or individual;

i) Businesses that are controlled by an individual through that individual's capital contribution to the business or direct participation in its management;

k) Other cases in which one enterprise is subject to the actual management, control, and decision-making power over the production and business activities of another enterprise;

l) The enterprise has transactions involving the transfer or acquisition of at least 25% of the owner's capital contribution during the tax period; or borrowing or lending at least 10% of the owner's capital contribution at the time of the transaction during the tax period with individuals managing or controlling the enterprise or with individuals belonging to one of the relationships specified in point g of this clause.

 

[3] Clause 2, Article 5 of Decree No. 132/2020/ND-CP dated November 5, 2020 stipulates:

Article 16. Cessation of the use of electronic invoices

1. Businesses, economic organizations, other organizations, households, and individuals engaged in business activities falling under the following categories shall cease using electronic invoices with tax authority codes and cease using electronic invoices without tax authority codes:

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

b) 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;

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

d) 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;

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

e) In cases where the act of creating electronic invoices 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 authorities;

g) 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.

Based on the results of inspections and audits, if the tax authority determines that a business was established to conduct illegal buying and selling or use of electronic invoices, or to illegally use electronic invoices to evade taxes as prescribed by law, the tax authority will issue a decision to cease the use of electronic invoices; the business will be penalized according to the law.

 

4 Clause 2, Article 91 of the 2019 Law on Tax Administration stipulates: Businesses operating in the fields of electricity, petroleum, postal and telecommunications services, clean water, finance, 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 invoice creation 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 to tax authorities, are allowed to use electronic invoices without a tax authority code when selling goods or providing services, regardless of the value of each sale or service.

 

5 Point a.2, Clause 3, Article 22 of Decree No. 123/ND-CP stipulates:

“a.2) The method of transferring the full content of the invoice applies to cases of selling goods or providing services not covered by point a1 of this section.

After completing all the necessary details on the invoice, the seller sends the invoice to the buyer and simultaneously submits it to the tax authorities.

 

6 Point a.1, Clause 3, Article 22 of Decree No. 123/2020/ND-CP stipulates: “Specifically for the sale of petroleum products to customers, the seller shall compile data from all petroleum sales invoices for the day for each item to display on the electronic invoice data summary table and transfer this electronic invoice data summary table on the same day.”

 

7 Clause 1, Article 14 of Decree No. 123/2020/ND-CP stipulates:

“1. In cases where electronic invoices with tax authority codes are used, no service fee is charged for a period of 12 months from the start of using electronic invoices, including:

a) Small and medium-sized enterprises, cooperatives, households, and individual businesses operating in areas with difficult socio-economic conditions or areas with particularly difficult socio-economic conditions. Areas with difficult socio-economic conditions and areas with particularly difficult socio-economic conditions shall be determined according to the List of Investment Incentive Areas issued together with Decree No. 118/2015/ND-CP dated November 12, 2015 of the Government detailing and guiding the implementation of a number of articles of the Law on Investment and any amending, supplementing or replacing documents if any.

b) Other small and medium-sized enterprises as proposed by the People's Committee of the province or centrally-administered city to the Ministry of Finance, excluding enterprises operating in economic zones, industrial parks, and high-tech zones.

The General Department of Taxation shall provide, or authorize a service provider for electronic invoices, electronic invoices with tax authority codes to the aforementioned entities free of charge.”