In the process of entering accounting declarations, you often encounter the problem of what your invoice is and whether this invoice is valid or not. With knowledge and practical experience, this article will help you better understand invoices.
- Overview of the invoice.
a). What is an invoice: An invoice is a document requesting payment for items with the quantity and unit price listed on that document. The invoice is issued by the seller. After the buyer pays, the seller will confirm on the invoice such as stamping to certify that payment has been made. At that time, the invoice has the same effect as a receipt or receipt .
b). Proper invoice identification : An invoice that complies with legal regulations must have:
_ Required supplier information: Company name, tax code, address and this information must be correct on the business license.
_ Required customer information: Company name, tax code, address and this information must be correct on the business license.
_ Invoice issuance time:
For commercial – service – construction – manufacturing – processing activities… normally, the time to issue an invoice is when the commercial activity is completed and the buyer has paid.
For business activities of trade – service – construction – production – processing… with contracts or contract appendices that stipulate payment time, the time for issuing invoices depends on the provisions of the contract.
_ Pre-printed information on the invoice: Invoice number, invoice symbol, invoice number (numbers jump continuously according to the book), information of the invoice printing unit (for printed invoices).
_ Detailed information on the invoice: Export content (specific export or export with list), unit of measure (if any), quantity, unit price, total amount, tax rate, amount in words.
_ Stamp:
If the seller is a company employee, sign in the seller’s place and stamp the invoice on the left corner.
If the seller is the legal representative, sign where the seller is and then stamp there, and the stamp must cover part of the signature.
_ Specific identification through invoice number and symbol:
VAT invoice printing
Normally there will be 2 to 3 copies (copy 1: kept at the office, copy 2: given to customers, copy 3: kept internally at the company).
Denominator:
2-copy form: 01GTKT2/001 (if the company changes the information in the next printing order, the suffix number will jump to 002,…).
3-copy form: 01GTKT3/001 (if the company changes the information in the next printing order, the suffix number will jump to 002,…).
Symbol: Usually the abbreviation of the unit’s name followed by the year of invoice issuance and the final character P ( this P is the character for printed invoices).
For example: Thien Minh Trading and Service Company Limited wants to order to print VAT invoices in 3-copy format and the year of issue is 2018 (this is the company’s first printing order).
Invoice form: 01GTKT3/001
Symbol: TM/18P (this symbol does not have to be the company’s abbreviation).
Self-printed VAT invoice:
Normally there will be 2 to 3 copies (copy 1 is kept at the office, copy 2 is given to the customer, copy 3 is kept internally at the company).
Denominator:
2-copy form: 01GTKT2/001 (if the company changes the information in the next print, the suffix number will jump to 002,….).
3-copy form: 01GTKT3/001 (if the company changes the information in the next print, the suffix number will jump to 002,….).
Symbol: Usually the abbreviation of the unit’s name followed by the year of invoice issuance and thefinal character T (this T is the character for printed invoices).
For example: Thien Minh Trading and Service Company Limited wants to issue self-printed VAT invoices in 2-copy form and the year of issue is 2018 (this is the company’s first printing order).
Invoice form: 01GTKT2/001
Symbol: TM/18T (this symbol does not have to be the company’s abbreviation).
Electronic VAT invoice:
Sample number: The only difference between printed invoices and self-printed invoices is that there is no distinction between copies.
Symbol: Usually the abbreviation of the unit’s name followed by the year of invoice issuance and thefinal character E (this E is the character for printed invoices).
For example: Thien Minh Trading and Service Company Limited wants to issue electronic VAT invoices and the issuance year is 2018 (this is the company’s first printing order).
Invoice template: 01GTKT 0 /001
Symbol: TM/18E (this symbol does not have to be the company’s abbreviation).
Sales invoice: Normally, units using sales invoices will purchase directly from the tax authority. These invoices are pre-printed according to the form and symbol prescribed by the tax authority.
Denominator:
Sales invoice purchased at tax office: 02GTKT 3/001 , 02GTKT 2/001
Electronic sales invoice: 02GTKT 0 /001
Symbol: Pre-determined by the tax authority but still P for printed tax authority, E for electronic invoice.
c). Notes on invoices:
_ All invoice contents must be printed on the same side of paper.
_ Invoices are not allowed to be issued with a backdated date. If issued with the wrong date, they must be recalled and replaced with invoices that have been delivered to the customer. It is best to issue them at the right time.
_ If the invoice has the wrong unit name or tax code, it is mandatory to recall and issue a replacement invoice for the invoice delivered to the customer. If other information is incorrect, the buyer and seller must agree to make a record of invoice adjustment.
_ Invoices that want to be declared for tax deduction and reasonable expenses must be notified to the tax authority and accepted by the tax authority.
_ To look up invoice issuance notice, visit: http://tracuuhoadon.gdt.gov.vn .
_ To look up customer or supplier information, you can visit: https://dichvuthongtin.dkkd.gov.vn and http://tracuunnt.gdt.gov.vn
- Classify invoices.
2.1. Value added tax invoice.
In Clause 1, Article 2 of Circular 39/2014/TT-BTC it is written:
“Value added invoice (also known as VAT invoice, red invoice) is an official invoice issued by the Ministry of Finance of Vietnam, applicable to organizations and individuals who declare and calculate tax according to the deduction method in business activities, buying and selling services, domestic transportation, export to non-tariff zones and cases considered as export, export of goods, provision of services abroad”.
2.2. Sales invoice.
At point b, clause 2, article 2 of Circular 39/2014/TT-BCT it is written:
“Sales invoices are used for the following subjects:
Organizations and individuals declare and calculate value added tax using the direct method when selling goods and services domestically, exporting to duty-free zones and cases considered as export, exporting goods and providing services abroad.
When organizations and individuals in the duty-free zone sell goods and provide services domestically and when selling goods and providing services between organizations and individuals in the duty-free zone, exporting goods and providing services abroad, the invoice must clearly state “For organizations and individuals in the duty-free zone”.
2.3. Industry-specific invoices.
In addition to the two main types of invoices above, there are also a number of other types of invoices that, depending on the specifics of that industry, have different names, shapes, and contents.
At point c, d, clause 2, article 2 of Circular 39/2014/TT-BCT it is written:
“Other invoices include: stamps; tickets; cards; insurance receipts…
Air freight receipts; international freight receipts; banking service fee receipts…, the form and content of which are prepared in accordance with international practices and relevant legal provisions.”
- Invoice form.
3.1. Self-printed invoices: Self-printed invoices are invoices that business organizations print themselves on computer equipment, cash registers or other types of machines when selling goods or providing services.
3.2. Electronic invoice: Electronic invoice is a collection of electronic data messages on the sale of goods and provision of services, which are initiated, created, sent, received, stored and managed according to the provisions of the Law on Electronic Transactions and its implementing documents.
3.3. Printed invoices: Printed invoices are invoices printed by organizations according to a template for use in selling goods and providing services, or printed by tax authorities according to a template for issuance and sale to organizations, households and individuals.
- Conditions for using invoices.
To use invoices, the following conditions are required:
4.1. For self-printed invoices.
_ Charter capital from 15 billion or more.
_ For businesses established after June 1, 2018, if the charter capital is less than 15 billion, they can still use self-printed invoices, as long as they purchase fixed assets, machinery, equipment, factories, vehicles, etc. worth over 1 billion and have an accompanying invoice.
4.2. For printed invoices.
_ Has hung a business sign at the head office address.
_ Has a document confirming the company’s right to use the head office address is legal (house lease contract, house loan contract, land use right certificate with the name of the company director).
_ Certificate of business registration, seal registration, round seal.
_ Has tables, chairs, books and other related items proving that the company is operating.
_ Has a contract for the purchase and sale of goods or provision of services proving that the company is operating and has a need to issue invoices to customers.
After checking the legal headquarters and the business operating at the headquarters, the Tax Department will issue a Headquarters Inspection Record or a Headquarters Inspection Confirmation, allowing the business to order invoice printing.
4.3. For electronic invoices.
According to Circular No. 32/2011/TT-BTC dated March 14, 2011:
“From January 1, 2019, it will apply to the remaining 30% of organizations and businesses. The goal is that by early 2020, 80% of businesses and organizations will use electronic invoices, electronic invoices with codes from the Tax Department. At the same time, from this point on, electronic invoices will also be deployed for business households with annual revenue of 3 billion VND or more.
This is the roadmap proposed by the General Department of Taxation and the Ministry of Finance in the proposal to develop a decree to replace Decree No. 51/2010/ND-CP and Decree No. 04/2014/ND-CP of the Government regulating invoices for the sale of goods.”
_ Is an economic organization that meets the conditions and is conducting electronic transactions in tax declaration with the tax authority.
_ Having an electronic signature as prescribed by law, the digital signature used to sign electronic invoices can also be used to sign other transactions with tax and insurance authorities.
_ Have an infrastructure system: location, information transmission lines, information networks, transmission equipment such as computers, other electronic devices, etc. to meet the requirements of controlling, processing, using, preserving and storing electronic invoices.
After meeting the above conditions, the Enterprise completes the procedures to issue an electronic invoice and sends it to the General Department of Taxation. Once the tax authority accepts, the Enterprise will be able to use the electronic invoice.
Some electronic invoice providers you can refer to: MISA, THAISON, VIETTEL, IINVOICE,……