Can abbreviations be used on electronic invoices? Abbreviation regulations!

What is an electronic invoice? Abbreviations on electronic invoices. Regulations on abbreviations on electronic invoices. Regulations on valid electronic invoices. Refer here.

What is an electronic invoice? Can it be abbreviated on an electronic invoice?

1. What is an electronic invoice? 

Electronic invoices are accounting documents created, established, stored and managed in electronic data form.

Electronic invoices are used by organizations and individuals selling goods and providing services to create and record information about the sale of goods and services, including 2 types:

• Electronic invoice with tax authority code;
• Electronic invoices do not have tax authority codes.

See also: 

>> Regulations on electronic invoices;

>> Viettel, Easyinvoice, Mobiphone electronic invoice service – 2023.

2. Can abbreviations be used on electronic invoices?

According to Clause 5, Article 10 of Decree 123/2020/ND-CP, organizations and individuals selling goods or providing services are allowed to abbreviate some common nouns in cases where the buyer’s name and address have too long information.

Specifically, what are the abbreviations on the electronic invoice? Please take some time to read the content below.

Regulations on abbreviations on electronic invoices

1. Regulations on address on electronic invoices

In case the address on the invoice is too long, the seller is allowed to abbreviate some common nouns on the invoice but must still ensure to provide full house number, street name, ward, commune, district, county, city.

STT	Abbreviated nouns are allowed.	Abbreviation as
1	Ward	P
2	Town	TT
3	District	Q
4	Town	TX
5	City	TP
6	Vietnam	VN

2. Regulations on buyer’s name on electronic invoice

Similar to the address information on the invoice, the seller is allowed to abbreviate the buyer’s name in case the name is too long. 

However, even if you use an abbreviation, you still have to ensure that the buyer’s name is correct. At the same time, the abbreviation must match the name on the business registration and tax registration (if the buyer is a business with a tax code).

It is not allowed to abbreviate any content related to economic and financial transactions on electronic invoices.

Latest regulations on electronic invoices

1. Invoice name, invoice symbol, invoice number symbol

➤ The invoice name must show the specific invoice type such as:

• Value added tax invoice;
• VAT invoice cum tax refund declaration;
• VAT invoice cum receipt;
• Sales invoice;
• Invoice for sale of public assets;
• Stamps, tickets, cards;
• National reserve sales invoice.

➤ Invoice symbols and invoice number symbols must be implemented in accordance with the instructions of the Ministry of Finance.

2. Invoice number

Invoice number is the serial number shown on the invoice when the seller creates the invoice.

• Invoice number has maximum 8 digits;
• Created in order from smallest to largest and must have the same invoice symbol;
• Starting from number 1 on the date of invoice start date or 01/01 of each year;
• Ends on December 31st each year and up to 99,999,999.

3. Name, address, tax identification number of seller and buyer

The invoice must show the name, address, and tax code of the seller and buyer exactly as the name, address, and tax code stated on the business registration certificate, business household registration certificate, branch registration certificate, and tax registration certificate. In case the buyer does not have a tax code, the tax code does not have to be shown on the invoice.

4. Signature of seller, signature of buyer

• If the seller is an organization or enterprise, the seller’s digital signature on the invoice is the digital signature of the enterprise or organization;
• If the seller is an individual, the seller’s digital signature on the invoice is the signature of the individual or authorized person.

Note:

Electronic invoices are not required to have the buyer’s digital signature. In case the buyer is a business establishment and there is an agreement between the buyer and seller that the electronic invoice is created with the signature of both.

Electronic invoices issued by tax authorities for each occurrence do not necessarily have to have digital signatures of the seller and buyer.

See also: 

>> What is a digital signature? Why are businesses required to have one?

>> Price list for new registration & renewal of Viettel ca digital signature – Guaranteed cheap.

Instructions for handling incorrect electronic invoices 

In the process of creating electronic invoices, errors will inevitably occur. Therefore, fdiinvietnam.com would like to share with you how to handle errors on invoices. 

Depending on each error case, the handling will also be different, specifically divided into 2 cases as follows:

➤ Case 1: 

The seller discovers an error in the electronic invoice with the tax authority’s code but has not yet sent it to the buyer. In this case, the seller must notify the tax authority of the cancellation of the invoice with the wrong code (according to form 04/SS-HDDT). At the same time, the seller must create a new invoice, sign it and send it to the tax authority to issue a replacement code.

➤ Case 2: 

The seller discovers an error in the electronic invoice with or without a tax authority code after sending it to the buyer. In that case:

• If the invoice only contains errors in the buyer’s name and address, the seller does not need to re-issue the invoice. However, the seller must be responsible for sending a notice to the buyer and the tax authority (according to form 04/SS-HDDT) about the errors in the buyer’s name and address;
• For errors in tax codes, quantities, unit prices, total amounts, tax rates, etc., sellers can consider choosing to issue a replacement invoice or an adjustment invoice for the previously issued incorrect invoice.

See details:

>> Instructions on how to handle and adjust incorrectly written electronic invoices;

>> Create replacement invoice – adjustment invoice according to Circular 78 & Decree 123.

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