For the most part, the biggest purpose and difference in deciding to establish a company rather than a sole proprietorship is that the company will be entitled to use Value Added Tax invoices, while the sole proprietorship will not. However, currently, businesses can use Value Added Tax invoices in two ways: printing invoices and electronic invoices online.
And to help everyone better understand the conditions and how to use each type of invoice differently and how to use it to suit your business needs, please read the information below.
An invoice is a document prepared by the seller, recording information about the sale of goods and services according to the provisions of law.
A legal invoice is an invoice that ensures correct and complete form and content according to the provisions of law.
Value added tax invoice is an invoice for selling domestic goods and services for organizations and individuals declaring value added tax according to the deduction method;
1. Printing invoice
Printed invoices are invoices ordered by a business to a specialized printing unit (qualified) to print according to a template for use in business activities of goods and services, or ordered by the tax authority to print according to a template to issue and sell to organizations and individuals.
And normally, businesses will choose to submit documents to the tax department directly managing them to request a document of eligibility to use VAT printed invoices and then proceed to print them. Instead of buying invoices from the tax authority.
There are 2 types of printed invoices, the first type is bound into a book for handwriting, the second type is using a continuous paper printing system, then can be handwritten or can use a dot matrix printer to print continuously to print invoices for customers (this type is often applied for printing large quantities).
2. Electronic invoice
An electronic invoice is an invoice that is created, created, and processed on the computer system of a business organization or individual that has been granted a tax code when selling goods or services and is stored on the computers of the Parties in accordance with the provisions of law on electronic transactions.
Electronic invoices are used in accordance with the provisions of law on electronic transactions.
NOTE: After printing invoices, businesses must submit an invoice issuance notice that is accepted by the tax authority, then 2 or 3 days later they are allowed to use the invoice, then the invoice is considered valid. In case, if the invoice issuance notice is not made or is not accepted but the business still uses the invoice, the invoice is considered invalid, illegal and must be withdrawn.
In the current situation, tax authorities also encourage businesses to use electronic invoices for more convenient management, and what other advantages does it have?
- For businesses: Using electronic invoices helps businesses save time, costs and cumbersome procedures. Customers who live far away do not have to spend much time to receive invoices from you, in just a few clicks, they will receive invoices wherever they are if there is internet. Therefore, there is no situation of losing invoices during the process of delivering invoices to customers. Of course, payment will also be faster and easier for businesses.
- Regarding costs, when using electronic invoices, businesses will not have to pay many fees compared to using paper invoices such as: Cost of printing paper, ink, cost of sending invoices to customers and especially reducing the cost of storing invoices;
- Electronic invoices will reduce the time spent searching for invoices; increase security; help store and manage invoices permanently; there is no risk of loss or damage like when storing paper invoices…
- In addition, another benefit that electronic invoices bring is that they will help businesses with tax administrative procedures. Instead, when using paper invoices, businesses must submit an application to use printed invoices to the tax authority, and must follow many other procedures for the tax authority to agree to allow businesses to be eligible to use them, which takes a long time and costs a lot of money. When using electronic invoices, basically tax administrative procedures will be carried out electronically. Just notify the tax authority online about the use of electronic invoices and they can be used immediately after the notification is accepted.
- In addition, Tax and Customs agencies will also easily manage and have a complete database of invoices; support and serve the work of inspection, examination, tax refund, and invoice reconciliation for businesses…
So can a business register for both paper invoices (printed or self-printed) and electronic invoices?
Reading up to here, everyone will have a question: can businesses use both paper invoices and electronic invoices at the same time?
The answer is yes. Currently, businesses can completely use both forms of invoicing in parallel. And still have to make a periodic Invoice Usage Report for both forms.