Instructions on how to create replacement invoices and adjustment invoices according to Circular 78/2021/TT-BTC & Decree 123/2020/ND-CP, notes before handling erroneous invoices.
I. Notes before handling erroneous invoices
Before handling an incorrect invoice, you need to determine which case you belong to in order to handle it correctly.
For electronic invoices, when creating and saving a draft invoice but not yet approving it for signature, the information can be sent to the customer for review, checking and editing.
In case you have signed and approved an invoice with a digital signature and discovered that the invoice has an error, you cannot edit that invoice anymore. At this time, you need to create a new electronic invoice to adjust or replace the erroneous electronic invoice.
- In case the e-invoice has been assigned a code by the tax authority but has not been sent to the buyer, when an error is discovered, the seller shall notify the tax authority according to form 04/SS-HDDT regarding the cancellation of the e-invoice with the code that was created with the error. At the same time, create a new invoice, digitally sign it, send it to the tax authority to issue a code to replace the created invoice with the error and send it to the buyer;
- In case an electronic invoice with or without a tax authority code has been sent to the buyer and an error is later discovered, it can be handled as follows:
- In case there is an error in the name and address of the buyer but not in the tax code, and other contents are not incorrect, the seller shall notify the buyer of the error in the invoice. At the same time, notify the tax authority of the error in the invoice according to form 04/SS-HDDT, without having to re-issue the invoice (except in the case of an electronic invoice without a tax authority code with the above error and the invoice data has not been sent to the tax authority);
- In case of errors in tax codes, invoice amounts, tax rates, tax amounts, or goods listed on invoices that do not match specifications or quality, the buyer and seller can choose to issue an adjustment invoice or a replacement invoice for the erroneous invoice. In this case, it is not necessary to issue an error notification form 04/SS-HDDT to the tax authority.
Below, fdiinvietnam.com will guide you on how to create replacement invoices and adjusted invoices according to Circular 78/2021/TT-BTC issued on September 17, 2021 and Decree 123/2020/ND-CP issued on October 19, 2020.
II. How to make an adjustment invoice
- In case the seller and the buyer have agreed to draw up a written agreement before drawing up an adjustment invoice for an invoice that has errors, the seller and the buyer will draw up a written agreement clearly stating the errors, then the seller will draw up an electronic invoice to adjust the invoice that has errors;
- On the adjusted electronic invoice issued for the erroneous invoice, there must be the line “Adjustment… for invoice number… symbol… date… month… year…”;
- In case a business issues an incorrect electronic invoice (invoice No. 1), then issues an adjustment invoice (invoice No. 2) and discovers that the invoice is still incorrect, it issues invoice No. 3 to adjust invoice No. 1 (at that time, invoice No. 1 has been adjusted by invoice No. 2).
1. Instructions for creating an adjustment invoice if there is an error in the information
In case of errors in tax codes, goods listed on invoices are not of correct quality specifications, units of calculation…
➞ On the adjusted invoice, write the correct information of the name of the goods and services sold. The unit, quantity, unit price, total amount, and tax rate sections will be left blank.
For example:
On August 20, 2022, company A exported DAIKIN FTKY50WVMV/RKY50WVMV air conditioners to company B. On September 12, 2022, it was discovered that the wrong name of the exported goods was DAIKIN FTKC50UVMV/RKC50UVMV air conditioners.
The two parties have discovered and agreed to issue an adjustment invoice for the incorrect invoice as follows:
2. Instructions for making an adjustment invoice if the amount is incorrect
In case of errors in the amount stated on the invoice, errors in the unit price, tax rate or tax amount, for the value content on the invoice with errors, when making an invoice to correct the error, only the difference amount needs to be recorded. If the adjustment increases, record a positive (+) sign, if the adjustment decreases, record a negative (-) sign corresponding to the amount to be adjusted.
For example:
On August 20, 2022, company A sold 2 DAIKIN FTKY50WVMV/RKY50WVMV air conditioners to company B. On September 12, 2022, it was discovered that the invoice had an incorrect unit price, leading to an incorrect amount (the actual selling price was 5,500,000 VND, but the invoice price was 6,000,000 VND).
The two parties have discovered and agreed to issue an electronic invoice to correct the incorrect invoice as follows:
III. Instructions on how to create a replacement invoice
- In case the seller and the buyer agree to make a written agreement before making a replacement invoice for the erroneous invoice, the seller and the buyer will make a written agreement clearly stating the error, then the seller will make a new electronic invoice to replace the erroneous invoice;
- The new electronic invoice replacing the erroneous invoice must contain the words “Replacement… for invoice number… symbol… date… month… year…”;
- The new electronic invoice will replace the erroneous invoice. When signing and issuing the replacement invoice, the erroneous invoice number will be deleted at the same time;
- In case a business issues an incorrect electronic invoice (invoice No. 1), then issues a replacement invoice (invoice No. 2) and discovers that the invoice is still incorrect, the business issues invoice No. 3 to replace invoice No. 2 (at that time, invoice No. 1 has been replaced by invoice No. 2).
For example:
On August 20, 2022, company A sold 2 DAIKIN FTKY50WVMV/RKY50WVMV air conditioners to company B. On September 12, 2022, it was discovered that the invoice had an incorrect unit price, leading to an incorrect amount (the actual selling price was 5,500,000 VND, but the invoice price was 6,000,000 VND).
The two parties have discovered and agreed to create an electronic invoice to replace the incorrect invoice as follows:
IV. Some frequently asked questions when creating replacement invoices and adjustment invoices
1. When sending a notice of error to the tax authority, do we have to wait until we receive a response from the tax authority before we can issue an adjustment invoice or a replacement invoice, or do we just need to send a notice to be able to issue a new invoice?
According to the provisions of Point b Clause 2 Article 19 of Decree 123/2020/ND-CP, taxpayers do not need to prepare an error notice (Form No. 04/SS-HDDT) and send it to the tax authority.
2. An invoice has been sent to the buyer and then an error is discovered. The seller cancels the invoice and issues a new invoice (without selecting to replace/adjust). The new invoice does not have the words “replace/adjust” for invoice number… is that okay?
According to regulations, a replacement or adjustment invoice must be issued to the buyer. The invoice must have the words “replacement/adjustment for invoice number… symbol… number… date… month… year”.
3. When making a notification of errors form 04/SS-HĐĐT, should it be made for each incorrect invoice or can it be made for multiple invoices? When should it be sent?
An error notice can be made according to form 04/SS-HDDT to notify the adjustment for each erroneous invoice or for many erroneous invoices and sent to the tax authority at any time, but no later than the last day of the tax reporting period in which the erroneous invoice is discovered.
4. In case of creating a replacement/adjustment invoice for an electronic invoice but then discovering that the invoice is still incorrect, will the next replacement/adjustment be made on the first invoice or on the most recent replacement/adjustment?
In case a business issues an incorrect electronic invoice (invoice No. 1), then issues an adjustment or replacement invoice (invoice No. 2) and discovers that the invoice is still incorrect:
- If choosing the adjustment method: The enterprise creates invoice number 3 to adjust invoice number 1 (at that time, invoice number 1 has been adjusted by invoice number 2).
- If choosing the replacement method: The enterprise issues invoice number 3 to replace invoice number 2 (in that case, invoice number 1 has been replaced by invoice number 2).