The method that handles incorrect e-invoices according to Decree 123 and Circular 78

Tax Agent TASCO has summarized the contents that the business community needs to pay special attention to regarding the procedure for handling incorrect e-invoices according to Decree 123 and Circular 78.

Pursuant to the provisions of Article 19 of Decree 123 and Article 7 of Circular 78.

1. In case the invoice has not been sent to the buyer with errors.

✨  The seller shall notify the tax authority according to Form No. 04/SS-HDDT Appendix IA issued with this Decree about the cancellation of the e-invoice with the wrong code.

✨  Make a new e-invoice, digitally sign it and send it to the tax authority to issue a new invoice code to replace the invoice already made to send to the buyer.

✨  The tax authority shall cancel the electronic invoice that has been issued with an error code stored on the tax authority's system.

2. In case the invoice has been sent to the buyer, it is discovered that there is an error.

💢  In case the seller issues an invoice when collecting money before or during service provision, then there is a cancellation or termination of service provision:

▪️  The seller cancels the e-invoice made.

▪️ Notify the tax authority of the invoice cancellation according to Form No. 04/SS-HDDT in Appendix IA issued with Decree No. 123.

💢  In case there is only a mistake in the buyer's name and address but no wrong tax code, other contents are correct:

▪️ The seller notifies the buyer of the error of the invoice and does not have to re-invoice.

▪️ The seller shall notify the tax authority of the incorrect e-invoice according to Form No. 04/SS-HDDT Appendix IA issued with Decree 123 unless the e-invoice does not have the tax authority’s code with the above error has not sent invoice data to the tax authority.

💢  In case there is a mistake: tax code; If the invoice amount is incorrect, the tax rate or tax amount is incorrect, or the goods written on the invoice are not in accordance with the rules and quality, you can choose one of two ways to use the electronic invoice as follows:

▪️ The seller issues an e-invoice adjusting the issued invoice with errors:

+ An e-invoice for adjustment of an e-invoice that has been made with errors must have the words "Adjustment for invoice Model No... symbol... number... date... month...".

+ For the content of the value on the invoice with errors, then: increase adjustment (positive sign), decrease adjustment (negative sign) in accordance with the actual adjustment.

▪️ The seller issues a new e-invoice to replace the e-invoice with an error. A new e-invoice that replaces an incorrect e-invoice must have the words "Replace the invoice Model No.... symbol... number... date... month... year".

+ In case the seller and the buyer have agreed on making a written agreement before issuing the invoice to adjust or replace the incorrect invoice, the seller and the buyer shall make a written agreement clearly writing the error.

+ In case the e-invoice has been made with errors and the seller has processed it in the form of adjustment or replacement, then it is discovered that the invoice continues to have errors, the next processing times the seller will follow the form applied when handling the error for the first time.

💢  For the aviation industry, the invoice for exchange or refund of air transport vouchers is considered an adjusted invoice without the information "Increase/decrease adjustment for invoice Model No... symbol... day month Year". Air transport enterprises are allowed to issue their own invoices for cases of refund or exchange of transport vouchers issued by the agent.

3. In case the tax authority detects that the e-invoice has been made with errors.

▶️ The tax authority shall notify the seller according to Form No. 01/TB-RSDT in Appendix IB issued with this Decree for the seller to check for errors.

▪️ According to the notice period stated on Form No. 01/TB-RSDT Appendix IB, the seller shall notify the tax authority according to Form No. 04/SS-HDDT in Appendix IA issued with this Decree about the check the e-invoices made for errors.

▪️ If the seller fails to notify the tax authority after the notice period specified on Form No. 01/TB-RSDT Appendix IB, the tax authority shall continue to notify the seller for the second time using Form No. 01/TB-RSDT Appendix IB. If the deadline for the second notification is overdue on Form No. 01/TB-RSĐT in Appendix IB, but the seller does not give notice, the tax authority shall consider switching to the case of checking the use of e-invoices.

▶️ Thus, in principle, when an enterprise issues an invoice and there is an error detected by the buyer, seller, or tax authority, the seller (invoice issuer) will be treated for the error by notifying the Tax authority of the error, then issuing a replacement or adjusted invoice to handle the error and sending it to the buyer and to the Tax authority. Depending on the specific case, there are many ways to handle it as mentioned above.

▶️ Tax Agent TASCO has summarized the contents that the business community needs to pay special attention to related to the procedure for handling incorrect e-invoices according to Decree 123 and Circular 78. However, this is only is specified in the document, in fact, there are other cases that arise, you can contact TASCO Tax Agent for more specific support.

Contact TASCO Tax Agent immediately in the following ways for a completely free consultation!!!

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