Each business’s accountant needs to clearly understand the characteristics of value-added invoices to be able to declare them accurately, and honestly, and avoid confusion. Viet An tax agent would like to provide information about value-added invoices as follows.
- Law on Value Added Tax 2008, amended and supplemented in 2013, 2014, 2016.
- Decree 123/2020/ND-CP regulates invoices and documents, amended and supplemented by Decree 41/2022/ND-CP.
What is a value-added invoice?
Value-added invoice (also known as “Red Invoice”) is a type of document prepared by the seller, recording information about selling goods, providing services to the buyer, and using services according to regulations. provisions of the law. This action is often referred to by the phrase “invoicing”.
This tax is according to the form issued and guided by the Ministry of Finance, applicable to organizations and individuals that declare and calculate taxes using the deduction method.
Value-added invoices are declared and calculated by organizations using the deduction method for value-added tax in the following activities:
- Selling goods and providing services domestically;
- International transport activities;
- Export to non-tariff zones and cases considered as exports;
- Exporting goods and providing services abroad.
Characteristics of value-added invoices
- Shows information about the business’s goods and services purchase and sale operations;
- Used in organizations that declare and calculate value-added tax using the deduction method;
- Value-added invoices are prepared with all required content according to regulations;
- Must be notified of release to tax authorities before use.
- A value-added invoice is a legally valid invoice. It separates the real value of the goods and the added value, which is the basis for tax deduction.
Invoices are expressed in the following forms:
- Self-printed invoices are invoices printed by business organizations themselves on computer equipment, cash registers, or other machines when selling goods or providing services;
- Electronic invoice is a collection of electronic data messages about selling goods and providing services, created, created, sent, received, stored, and managed according to the provisions of the Law on Electronic Transactions and other regulations. Implementation guidelines;
- Printed invoices are invoices ordered by organizations to print according to a form for use in selling goods or providing services, or ordered by tax authorities according to a form to issue and sell to organizations, households, or individuals.
Regulations on value-added invoices
Mandatory contents and some regulations on value-added invoices:
- Invoice name: value-added invoice, value-added invoice cum tax refund declaration, value-added invoice cum receipt.
- Some bills.
- Name, address, and tax code of the seller.
- Name, address, and tax code of the buyer. In case the buyer does not have a tax code, the invoice does not have to show the buyer’s tax code.
- Name, unit of measure, quantity, and unit price of goods and services in Vietnamese. In case foreign words need to be added, the foreign words are placed on the right in parentheses ( ) or placed immediately below the Vietnamese line and have Font size smaller than Vietnamese text.
- Value-added tax rate: the value-added tax rate corresponding to each type of goods and services according to the law on value-added tax.
- Total amount without value-added tax, value-added tax rate, total value-added tax amount by each type of tax rate, total value-added tax amount, and total payment amount with value-added tax increase.
- Seller’s signature, buyer’s signature.
- The invoice time is displayed in the format of day, month, and year of the calendar year.
- The time of digital signature on the electronic invoice is the time when the seller and buyer use the digital signature to sign on the electronic invoice displayed in the format of day, month, and year of the calendar year. In case the electronic invoice has been issued and the time of digital signature on the invoice is different from the time of invoice creation, the tax declaration time is the time of invoice creation.
- The tax authority’s code for electronic invoices has the tax authority’s code as prescribed in Clause 2, Article 3 of this Decree.
- Fees and charges belonging to the state budget, trade discounts, promotions (if any), and other related contents (if any).
- Name and tax code of the organization receiving invoice printing for invoices ordered by tax authorities.
- Letters, numbers and currency shown on the invoice:
- The writing displayed on the invoice is Vietnamese.
- The numbers displayed on the invoice are Arabic numbers.
- The currency listed on the invoice is Vietnam Dong.
- Other content on the invoice: can create additional information about the logo or logo to represent the brand, brand, or representative image of the seller. Depending on the characteristics, nature of the transaction, and management requirements, the invoice may display information about the Sales Contract, shipping order, customer code, and other information.
Note about some optional content on the value-added invoice
- The electronic invoice does not necessarily have the buyer’s electronic signature.
- For electronic invoices issued by tax authorities each time they arise, it is not necessary to have the digital signature of the seller and buyer.
- Electronic invoices for sales at supermarkets and shopping centers for non-business individual buyers do not necessarily have to have the buyer’s name, address, or tax code.
- invoices for selling gasoline to non-business individuals do not necessarily have to include the invoice name, invoice form symbol, invoice symbol, and invoice number; name, address, tax code of the buyer, electronic signature of the buyer; digital signature, electronic signature of the seller, value-added tax rate.
- Electronic invoices that are stamps, tickets, or cards do not necessarily have the seller’s digital signature (except in the case of stamps, tickets, or cards that are electronic invoices with codes issued by tax authorities), buyer criteria (name, address, tax code), tax amount, value added tax rate. In case stamps, tickets, and electronic cards have a face value, it is not necessary to have unit, quantity, and unit price criteria.
- Electronic documents for air transport services exported via websites and e-commerce systems prepared according to international practice for non-business individual buyers identified as electronic invoices are not consistent on the invoice. It is necessary to have an invoice symbol, invoice form symbol, invoice serial number, value-added tax rate, tax code, buyer address, and seller’s digital signature.
- For invoices for construction and installation activities; Activities of building houses for sale with payment according to progress according to the contract, the invoice does not necessarily have to have the unit of calculation, quantity, or unit price.
- For the warehouse release cum internal transportation note, the warehouse release cum internal transportation note shows information related to the internal dispatch order, consignee, shipper, export warehouse location, and receiving location, transportation.
- Invoice used for Interline payment between airlines is createdAccording to the regulations of the International Air Transport Association, the invoice does not necessarily have the following criteria: invoice symbol, invoice form symbol, address name, buyer’s tax code, digital signature. of the buyer, unit of measure, quantity, unit price.
- The invoice issued by the air transport enterprise to the agent is the invoice issued according to the report reconciled between the two parties and according to the general list, the invoice does not necessarily have a unit price.
- For construction, installation, production, and provision of products and services of national defense and security enterprises serving national defense and security activities according to Government regulations, the invoice does not necessarily have to have a unit of measure; quantity; or unit price; In the name of goods and services, write the provision of goods and services according to the contract signed between the parties
Note for output value-added invoices
- Enterprises subject to paying value-added tax (VAT) according to the tax deduction method when selling goods and services subject to VAT must use VAT invoices, including cases of selling goods and services subject to consumption tax. special receptor.
- However, when a business issues a value-added invoice, it must be reasonable, strict, and in accordance with the rules of law and financial agencies for that invoice to be accepted by the tax authority.
- Businesses need to pay attention to the wording when writing names of goods and services on invoices. This is the basis for determining the applied value-added tax rate. For example, in an enterprise with a transportation business during the period of value added tax reduction for transportation activities from 10% to 5%. If the invoice says transportation service, the tax rate will be 5%, but if it says car rental, the tax rate will be 10%.
- With the deduction method, purchase invoices with a value of 20 million or more must be transferred through the payment bank to be able to deduct value-added tax.
Above is the information to answer the question: What is a value-added invoice? Viet An Law Firm – Tax Agent is pleased to support your business with procedures for full tax declaration services and a number of services related to tax accounting services. Please contact us for detailed instructions.