Question 1: Is an invoice converted from an e-invoice valid? What are the principles for converting e-invoices to paper invoices?
Answer:
According to Article 7, Decree 123/2020/ND-CP:
- When an e-invoice is converted into a paper invoice, the paper invoice only has value for record-keeping and accounting purposes as regulated by accounting laws and electronic transaction laws. It has no validity for transactions or payments, except in cases where the invoice is created from a cash register connected to electronic data transfer with the tax authority as regulated.
- The principle for converting e-invoices to paper invoices must ensure consistency between the content of the e-invoice and the converted paper invoice. A lawful e-invoice can be converted into a paper invoice when there is a request for an economic or financial transaction, or at the request of the tax administration agency, auditing agency, inspection agency, investigation agency, and as prescribed by law on inspection, examination, and investigation.
Question 2: How is the invoice issuance time determined under Decree 123/2020?
Answer:
According to Article 9, Decree 123/2020/ND-CP:
- The time for issuing an invoice for goods sale is the time of transfer of ownership or right to use the goods to the buyer, regardless of whether payment has been received or not.
- The time for issuing an invoice for service provision is the time when the service is completed, regardless of whether payment has been received or not. If the service provider collects money in advance or during the provision of the service, the invoice issuance time is the time of collection (excluding cases of collecting deposits or advances to secure the performance of contracts for accounting, auditing, financial and tax consulting; appraisal; survey, technical design; supervision consulting; and construction investment project preparation services).
- In cases of multiple deliveries or phased handover of services, an invoice must be issued for each delivery or handover for the corresponding volume and value of goods or services delivered.
Question 3: For construction activities that require time to reconcile data between the enterprise and the customer, can an invoice be issued after the reconciliation is completed?
Answer:
- According to Clause 4, Article 9, Decree 123/2020/ND-CP, cases of providing services in large quantities, frequently arising, requiring time to reconcile data between the service providing enterprise and customers or partners, such as providing direct support services for air transport, supplying aviation fuel to airlines, electricity supply activities (except for subjects specified in point h of this clause), water, television services, postal and delivery services (including agency services, collection and payment services on behalf of others), telecommunications services (including value-added telecommunications services), logistics services, information technology services (except for cases specified in point b of this clause), etc.
- Construction activities are not among the cases that require time to reconcile data. Therefore, the invoice issuance time is for each delivery or handover, where an invoice must be issued for the corresponding volume and value of goods or services delivered.
Question 4: How are errors handled if an e-invoice with a tax authority code or an e-invoice without a tax authority code has been sent to the buyer, and the buyer or seller discovers an error?
Answer:
According to Clause 2, Article 19, Decree 123/2020/ND-CP:
- If there is an error in the buyer’s name or address but no error in the tax code, and other contents are correct, the seller informs the buyer of the error on the invoice and does not have to issue a new invoice.
- If there is an error in the tax code, an error in the amount stated on the invoice, an error in the tax rate, tax amount, or goods listed on the invoice that do not conform to specifications or quality, one of two methods can be chosen:
- 1. The seller issues an e-invoice to adjust the previously issued erroneous invoice. If the seller and buyer agree to establish a written agreement before issuing an adjustment invoice for an erroneous invoice, then the seller and buyer shall establish a written agreement clearly stating the error, after which the seller shall issue an e-invoice to adjust the erroneous invoice.
- 2. The seller issues a new e-invoice to replace the erroneous e-invoice. If the seller and buyer agree to establish a written agreement before issuing a replacement invoice for an erroneous invoice, then the seller and buyer shall establish a written agreement clearly stating the error, after which the seller shall issue an e-invoice to replace the erroneous invoice.
- For the aviation industry, invoices for exchanges or refunds of air transport documents are considered adjustment invoices and do not require the phrase “Adjust increase/decrease for invoice Form No… symbol… dated… month… year.”
