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1. Carry out the mandate to set up the E-invoice

Previously, in ‘Decree No. 119/2018/ND-CP’ and ‘Circular No. 68/2019/TT-BTC’, there were no regulations on authorization to make e-invoices. Therefore, authorization of e-invoicing is one of the highlights of the Circular. Accordingly, sellers of goods and providers of services are entitled to authorize a third party (a party that has an affiliated relationship with the seller, is eligible to use e-invoices and is not in discontinuance) to make e-invoices for the sale of goods and services. The authorized e-invoice must show the name, address and tax identification number of the authorizing party and the name, address and tax identification number of the authorized party and must be true to the actual arising. The authorization must be made in writing (contract or agreement) between the two parties and must fully show the information as prescribed in Article 3 of the Circular. The authorizing party and the authorized party must notify the tax authority in accordance with regulations as authorization determines the changes to information provided to register for using e-invoices.

2. Errors in e-invoices sent to tax authorities

The management of e-invoices by tax authorities has changed significantly after the Circular with the introduction of new rules as follows:

• In case the e-invoice has errors, the tax authority’s code must be re-issued, or if the e-invoice has errors that need to be adjusted or replaced, the seller can notify such adjustment for each invoice with errors or notify the adjustment of multiple incorrect e-invoices to the tax authorities by no later than the last day of the value-added tax declaration period in which the adjusted e-invoice arises.
• In case the invoice issued by seller while collecting money before or while providing the service is terminated or cancelled, the seller shall cancel such e-invoice and notify the tax authority about the cancellation of the invoice.
• In case the e- invoice has errors and the seller made adjustment or replacement, but the invoice continues to have errors, the seller shall follow the same method previously used for rectification.
• If the value on the e-invoice has errors, it isnecessary to adjust by increasing (positive sign) or decreasing the value (negative sign) in accordance with the actual adjustment.

Note: The declaration supplemented with the application for e-invoice adjustment and replacement (including e-invoice cancellation) shall comply with the law on tax administration.   

3. Convert to apply e-invoice with tax authority’s code

Enterprises that are using e-invoices without the tax authority’s code, can apply for inclusion of tax authority’s code on the e-invoices according to regulations.

In addition, enterprises that are eligible to use e-invoices without a code as prescribed in Clause 2, Article 91 of the ‘Law on Tax Administration’, and identified with high tax risks as prescribed in ‘Circular No. 31/2021/ TT-BTC’ dated May 17, 2021 of the Ministry of Finance, if notified by the tax authority to apply for e-invoice with the tax authority’s code, must apply for the e-invoice with the tax authority’s code within ten (10) working days from the date of such notice. Twelve months after switching to e-invoices with the tax authority’s code, if the enterprise wishes to use e-invoices without the code, the taxpayer shall make the changes to the e-invoice as per the provisions of ‘Clause 2, Article 91’ of the ‘Law on Tax Administration’ and ‘Circular No. 31/2021/TT-BTC’ for consideration and approval.         

4. Forward processing of e-invoices announced before the date of issuance of this Circular

• Enterprises that have announced the issuance of ordered invoices, or self-printed e-invoices without codes, or have applied for e-invoices with tax authorities’ codes, or purchased invoices from tax authorities in advance until the date on which this Circular was promulgated may continue to use the invoices in the same form until June 30, 2022 and carry out the invoice procedures as prescribed in the ‘Decision: No. 51/2010/ND-CP’ dated May 14, 2010 and ‘No. 04/2014/ND-CP’ dated January 17, 2014 of the government.
• Enterprises established on or after the date this Circular is promulgated until June 30, 2022, in case the tax authorities notify the enterprise to issue e-invoices according to the provisions of ‘Decree No. 123 /2020/ND-CP’, ‘Decree No. 119/2018/ND-CP’ dated September 12, 2018, and ‘Circular No. 68/2019/TT-BTC’, companies shall comply with such notification from the tax office.  
• The use of personal income tax withholding vouchers shall continue to comply with ‘Circular No. 37/2010/TT-BTC’ dated March 18, 2010 of the Ministry of Finance (and amendments and supplements) and ‘Decision No. 102/2008/QD-BTC’ dated 12/11/2008 of the Ministry of Finance until the end of June 30, 2022.

This Circular will take effect from 01 July 2022. However, state agencies encourage enterprises that have been using e-invoices, especially newly established enterprises, to update their e-invoicing system as per the guidelines issued in this Circular before June 30, 2022. Hence, businesses should follow the rules of the new Circular and update their e-invoicing accordingly.