The Circular addresses important matters that accountants working for enterprises, economic organizations, other entities, business households or individual businesses should consider, including the followings (according to the Official Dispatch No. 4178/TCT-CS dated October 15, 2019):
1. From November 1, 2020 enterprises, economic organizations, other entities, business households or individual businesses will be required to register their use of electronic invoices in accordance with instructions given in the Circular No. 68/2019.
2. Information shown on electronic invoices
An electronic invoice is basically similar to a paper one referred to in the Circular No. 39/2014/TT-BTC and will have additional information fields, including: Tax authority’s code, shown on electronic invoices required to carry tax authority’s codes; State Budget-owned fees and charges and other relevant information (if any).
“According to Clause 2 of Article 151 of the 2019 Law on Tax Administration, July 1, 2022 will be the final deadline by which it is mandatory for all entities and persons to comply with regulations on electronic invoices and other documentary evidence. According to the Official Dispatch No. 4178, the General Department of Taxation has, however, kept reaffirming the same regulations as in the Decree No. 119/2018/ND-CP: “From November 1, 2020 enterprises, economic organizations, other entities, business households or individual businesses shall have to register their use of electronic invoices“. This means that there is a conflict between the Law and the sub-Law document. Therefore, the Government is expected to issue another legal document to resolve such conflict in order to ensure regulatory consistency for people’s compliance and convenience”, Lawyer Bui Tuong Vu, Director of THƯ VIỆN PHÁP LUẬT Co., Ltd., noted.
3. 7 cases in which electronic invoices are exempted from the full information requirement
- Electronic invoices for goods sold by supermarkets or commercial centers are issued to buyers who are non-business persons;
- Electronic invoices for petrol sold to customers are issued to non-business persons;
- Electronic invoices exist in a form of stamp, ticket or card;
- Electronic documentary evidence for aviation transport services issued via websites and e-commerce systems in conformance to international conventions to buyers who are non-business persons are classed as an electronic invoice;
- Invoices for construction and installation services, or building of commercial houses sold to receive installment payments made under sale contracts, are regarded as electronic invoices;
- Electronic dispatch and consignment notes are deemed as electronic invoices;
- Invoices for payment transactions made by using the Interline method between airlines are issued under the regulations adopted by the International Air Transport Association.
4. Electronic invoice’s format
General Department of Taxation designs and publicizes functions containing electronic invoice data, digital signatures, and provides tools enabling display of information shown on electronic invoices in accordance with regulations in force.
5. Use of electronic invoices;
Pursuant to regulations laid down in Article 12 in the Decree No. 119, with respect to use of electronic invoices without tax authority’s codes, business sectors are determined as tier-4 sectors of the economy according to the Standard Industry Classification prescribed in the Decision No. 27/2018/QD-TTg dated June 7, 2018.
6. Cases in which high risks related to taxes on use of electronic invoices carrying tax authority’s codes arise
If an enterprise posing high tax-related risks is the one having its equity worth less than 15 billion dong and falling into one of eight (8) situations referred to in Clause 3 of Article 6 in the Circular No. 68/2019, it may use electronic invoices carrying tax authority’s codes for 12 consecutive months of its business.
7. Use of electronic invoices with codes assigned for each issue
Entities, enterprises, business households and individual businesses eligible to receive electronic invoices carrying tax authority’s codes for each of their issue as provided in Clause 4 of Article 6 in the Circular No. 68 must submit their applications for grant of electronic invoices to tax authorities, and make VAT declarations, PIT, CIT and other tax or fee payments (if any) before obtaining electronic invoices.
8. 7 cases in which use of electronic invoices with or without tax authority's codes
They are 7 cases specified in Article 9 and 15 in the Circular No. 68.
Entities subject to the requirement for suspension of use of invoices will continue to use electronic invoices with or without tax authority’s codes after informing supervisory tax authorities of continued business or tax authority’s permission for restoration of their tax identity numbers or regulatory authority’s decision to cancel decisions on enforcement of recovery of tax debts.
9. Actions to be taken to deal with electronic invoices with or without codes that contain errors (click here for details).
10. Response to any issues arising from use of electronic invoices carrying codes
Please see details in Article 12 of the Circular No. 68/2019/TT-BTC of the Ministry of Finance.
11. Effect of legal documents on electronic invoices
- From November 14, 2019 to October 31, 2020, the following legal instruments will remain in force:
+ Circular No. 32/2011/TT-BTC dated March 14, 2011;
+ Circular No. 191/2010/TT-BTC dated December 1, 2010;
+ Circular No. 39/2014/TT-BTC dated March 3, 2014;
+ Decision No. 1209/QD-BTC dated June 23, 2015;
+ Decision No. 526/QD-BTC dated April 16, 2018;
+ Decision No. 2660/QD-BTC dated December 14, 2016;
+ Circular No. 37/2017/TT-BTC dated April 27, 2017.
- From November 1, 2020 all Circulars and Decisions of the Ministry of Finance will be repealed.
12. By October 31, 2020, if any business has received notices of use of electronic invoices from tax authorities, but has not yet had facilities necessary to use electronic invoices, they can send invoice data to tax authorities by using the Form No. 03 (Appendix to the Decree No. 119) and submitting their VAT declaration form.
13. Use of electronic invoices by public educational institutions and medical establishments
- Public educational institutions and medical establishments already using payment receipts may continue to use such receipts.
- Upon receipt of notices of use of electronic invoices from tax authorities, they must:
+ send invoice data to tax authorities by using the Form No. 03 in the Appendix to the Decree No. 119 and submit VAT declaration forms if they have not yet had resources necessary to issue electronic invoices.
+ register use of electronic invoices if they has met information facility and other regulatory requirements.
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