Headlines 26/10/2020 17:39 CH

Four important regulations regarding invoices are set forth in Decree 123/2020

Thanh Lợi

Below are four important regulations regarding invoices and e-invoices set out in the Decree No. 123/2020/ND-CP in force from July 1, 2022:

1. Abolishing the regulation ‘compulsorily using e-invoices from November 1, 2020’ under Decree 119

Decree No. 123/2020 prescribes the abolishment of clause 2 and 4 of Article 35 in the Decree No. 119/2018/ND-CP dated September 12, 2018:

    Article 35. Entry into force

    1. This Decree shall take effect from November 1, 2018.

    2. The implementation of e-invoices and e-invoices with tax authorities’ identification codes as provided by this Decree shall be completed by enterprises, economic or other organizations, business households and individuals by November 1, 2020.

    ......

    4. From November 1, 2020, the Decree No. 51/2010/ND-CP dated May 14, 2010 and the Decree No. 04/2014/ND-CP dated January 17, 2014 of the Government on invoices for sale of goods and provision of services shall be repealed. 

2. Permitted uses of invoices printed to meet tax authorities’ purchase orders after July 1, 2022  

Departments of Taxation in provinces and centrally-affiliated cities (hereinafter referred to as Department(s) of Taxation) may order the printing of invoices resold to the following customers:

 (1) the enterprises, economic organizations, sole proprietorship households or sole proprietors mentioned below if they do not have electronic transactions with tax authorities, information technology infrastructure, or accounting software systems or e-invoicing software functioning as the tools of using e-invoices and transmitting e-invoice data to buyers and tax authorities:

- Small- and medium-sized enterprises, cooperatives, sole proprietorship households and sole proprietors at areas facing socio-economic difficulties or extreme socio-economic difficulties (according to the list of areas given investment incentives as per the Decree No. 118/2015/ND-CP dated November 12, 2015 and other amending, supplementing or replacing documents (if any)). 

- Other small and medium-sized enterprises, subject to regulations of laws.

Notes: Enterprises, economic organizations, sole proprietorship households and individuals may buy invoices from tax authorities for a period of up to 12 months while tax authorities must have solutions to gradually converting to the use of e-invoices. Before converting into e-invoices, enterprises, economic organizations, sole proprietorship households and individuals must register their use of e-invoices with tax authority’s identity codes or without tax authority’s codes (if prescribed requirements are satisfied) under regulations in force.

 (2) enterprises, economic organizations, sole proprietorship households and individuals that register their use of e-invoices during the period of failure of tax authorities’ IT systems granting invoice codes under regulations in force.

3. Regarding the use of issued invoices

Enterprises, economic organizations that have informed the issue of externally printed or internally printed invoices or e-invoices without tax authority’s identity codes or have registered the use of e-invoices with tax authority’s codes, or have purchased invoices from tax authorities, by October 19, 2020, may continue to use these invoices from October 19, 2020 to end of June 30, 2022, and must follow invoice-related procedures as provided in the Decree No. 51/2010/ND-CP dated May 14, 2010 and the Decree No. 04/2014/ND-CP dated January 17, 2014.  

During the period from October 19, 2020 to June 30, 2022, if tax authorities advise business establishments of conversion into e-invoices under the Decree No. 123/2020 or the Decree No. 119/2016/ND-CP dated September 12, 2018, if they continue to use the aforesaid invoices because of their failure to meet information technology infrastructure requirements, they must send their invoice data to their supervisory tax authorities by using the Form No. 03/DL-HDDT given in the Appendix IA to the Decree No. 123/2020 and must submit their VAT declaration forms. Receiving tax authorities must set up the database containing their invoice data and have it posted on the Web Portal of the General Department of Taxation to enable e-invoice data searches.

4. Regarding the use of invoices by newly-established business establishments

With respect to businesses established during the period from October 19, 2020 to June 30, 2022, if tax authorities do not order them to use e-invoices in accordance with the Decree No. 123/2020, they must follow the tax authority’s instructions.

If they continue to use the invoices prescribed in the Decree No. 51/2010/ND-CP dated May 14, 2010 and the Decree No. 04/2014/ND-CP dated January 17, 2014 because of their failure to meet information technology infrastructure requirements, they must send their invoice data to their supervisory tax authorities by using the Form No. 03/DL-HDDT given in the Appendix IA to the Decree No. 123/2020 and must submit their VAT declaration forms. Receiving tax authorities must set up the database containing their invoice data and have it posted on the Web Portal of the General Department of Taxation to enable e-invoice data searches.

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