Instructions on how to handle and adjust incorrectly written electronic invoices – New

Circular 78, Decree 123 handles electronic invoices with incorrect addresses, tax codes… for electronic invoices with and without tax codes. In this article, fdiinvietnam.com will guide you on how to handle incorrect invoices in each specific case.

I. How to handle electronic invoices with tax authority codes & without tax authority codes

Depending on each case of violation when creating electronic invoices with or without tax authority codes, as well as the time of detecting the error, the handling will be different, specifically:

1. In case an error is discovered when issuing an electronic invoice with a tax authority code before sending it to the customer

3 steps to adjust electronic invoices with tax authority codes when they are written incorrectly and have not been sent to customers:

• Step 1: Notify the tax authority according to form 04/SS-HDDT Appendix IA Decree 123, cancel the incorrectly issued electronic invoice;
• Step 2: Create a new electronic invoice, sign it, send it to the tax authority to get a code and send it to the buyer;
• Step 3: The tax authority will cancel the erroneous electronic invoice to save it on the tax authority’s system for lookup and management purposes.

FREE DOWNLOAD: Form 04/SS-HDĐT.

2. In case an error is detected when sending an electronic invoice with or without a tax authority code to the customer

2.1. In case of only errors in the name and address of the buyer

• In this case, the seller does not have to re-issue the invoice but only needs to notify the buyer of the error when issuing the invoice;
• At the same time, notify the tax authority according to form 04/SS-HDDT (except for cases where the electronic invoice does not have a code and has not sent data to the tax authority).

FREE DOWNLOAD: Sample invoice adjustment form for incorrect name and address.

2.2. In case of errors in tax code, quantity, unit price, total amount, tax rate…

In these cases, the seller can choose to adjust the invoice in one of the following two ways:

>> Method 1 :

• Make a record clearly stating the error (if there is an agreement to make a record before making the adjustment invoice) and issue the adjustment invoice;
• The adjusted invoice will show the words “Adjustment for invoice form number… symbol… number… date… month… year”.

>> Method 2:

• Make a record clearly stating the error (if there is an agreement to make a record before making a replacement invoice) and issue a replacement invoice;
• The replacement invoice must contain the words “Replacing invoice form number… symbol… number… date… month… year” (Decree 123/2020/ND-CP issued on October 19, 2020).

Note: For the aviation industry, electronic invoices for exchanging or refunding shipping documents are considered adjustments without the need to write “Increase/decrease adjustment for invoice…”.

Example 1:

Enterprise A sold 16 umbrellas for 160,000 VND/umbrella, with a tax rate of 10%, and issued invoice number… symbol… form number… dated November 1, 2021 to the buyer. However, it was later discovered that the content of the invoice had incorrect tax rate information of 5%. The enterprise handled the matter as follows:

>> Step 1 :   The two parties make a record of adjustment, clearly stating the error, and sign and stamp it (if the two parties have previously agreed in writing);

>> Step 2: The seller re-issues a new invoice to replace the erroneous invoice, with the line “replacement for invoice form number… symbol… number… dated November 1, 2021”, then re-enters the correct tax rate information with 10%.

 

FREE DOWNLOAD: Sample invoice adjustment form for incorrect tax rate.

 

Example 2:

On November 2, 2021, enterprise A discovered that an output invoice for selling mattress No…. symbol… form number… date… had an incorrect unit price, leading to an incorrect value of the goods. Instead of the correct unit price of 5,000,000 VND, the incorrect output was 4,500,000 VND. The enterprise handled as follows:

>> Make a record of price increase adjustment (if there is a previous agreement);

>> Issue an invoice to adjust the unit price for an incorrectly created invoice:

 

FREE DOWNLOAD: Sample price increase adjustment record.

 

II. How to handle incorrectly written invoices when the tax authority discovers errors

When the tax authority discovers an error, it is necessary to adjust the electronic invoice (with or without a tax authority code) according to the following steps: 

• Step 1: The tax authority issues notice form No. 01/TB-RSĐT Appendix IB to the seller to check for errors;
• Step 2: The seller prepares a notice form 04/SS-HĐĐT Appendix IA and sends it to the tax authority within the deadline in the notice.

Note: In case the deadline stated on the review notice in form 01/TB-RSĐT has passed and the tax authority has sent it twice but the seller has not responded with notice form 04/SS-HĐĐT, the tax authority will move on to the case of checking the business’s invoice usage.

III. Regulations on adjusting electronic invoices when there are errors

1. In case of errors in the issued electronic invoices that require re-issuance of codes or handling by adjustment/replacement, the seller shall use form No. 04/SS-HDDT to notify the adjustment for each invoice or multiple incorrectly issued electronic invoices. The notification shall be sent to the tax authority no later than the last day of the VAT declaration period in which the adjusted invoice is issued;
2. For incorrect electronic invoices that are handled by adjustment/replacement, the same handling method must be applied to subsequent errors (if any);
3. In case of errors that need to be adjusted up or down in value, when adjusting up (write positive sign), adjust down (write negative sign) to match the value that needs to be adjusted.
4. For electronic invoice data summary table:

>> If missing data is found, send additional information;

>> If there are any errors, please send correction information for the information declared on the summary table.

5. In case of canceling an electronic invoice and notifying the tax authority about the cancellation of the invoice according to form No. 04/SS-HDDT: The seller issues an invoice to collect money before or during the provision of goods and services that results in cancellation or termination of the provision of goods and services;
6. In case according to regulations, the electronic invoice is created without the invoice number symbol, invoice symbol, or invoice number with errors, the seller only applies adjustments without canceling or replacing;
7. The declaration of additional documents for adjusted/replaced/cancelled electronic invoices shall comply with the provisions of the Law on Tax Administration.

IV. Some frequently asked questions when handling incorrectly written electronic invoices