HOW TO CANCEL OUTSTANDING INVOICES WHEN USING ELECTRONIC INVOICES ACCORDING TO DECREE 123/2020/ND-CP

In the process of converting to using electronic invoices according to the new regulations of Decree 123/2020/ND-CP and Circular 78/2021/TT-BTC, businesses and organizations need to handle the current outstanding invoices, including paper invoices and electronic invoices according to the old regulations (Circular 32, Decision No. 1209). How to handle the number of outstanding invoices, this is a question of many units, TASCO Tax Agent will answer this question in the article below!

Currently, regulations on electronic invoices are always a headache for businesses because policies and legal documents are issued and revised continuously. How are the order and procedures for converting electronic invoices regulated? If the number of electronic invoices and paper invoices that have been used by the enterprise still exists, how should the units handle it? Thousands of questions make most of the accounting department at the units confused, however, electronic invoices are a very useful solution, saving considerable cost and time for the units to use.

Therefore, businesses should convert and replace invoices according to the order prescribed by legal authorities to avoid unfortunate mistakes!

Issued paper invoices and issued electronic invoices must be cancelled:

According to the provisions of Clause 3, Article 15 of Decree 123, stated:

From the time the tax authority accepts the registration for the use of electronic invoices as prescribed in this Decree, enterprises, economic organizations, other organizations, business households and individuals must stop using electronic invoices that have been announced for issuance according to the previous regulations, destroy paper invoices that have been announced but have not been used (if any). The order and procedures for cancellation comply with the provisions of Article 27 of this Decree.

Thus, according to the above provisions, from the time when an enterprise registers to use electronic invoices under Decree 123 and is accepted by the tax authority, the enterprise will stop using electronic invoices according to the old regulations and start cancel outstanding paper invoices (if any).

How to cancel outstanding invoices when converting to electronic invoices according to Decree 123/2020/ND-CP

Procedures for cancelling invoices of enterprises, economic organizations, business households and individuals shall comply with Article 27 of Decree 123 as follows:

👉 Enterprises, economic organizations, business households and individuals must make an invoices inventory table to be cancelled.

👉 Enterprises and economic organizations must set up invoice cancellation councils. The Invoice Cancellation Council must have a leader representative, a representative of the organization's accounting department. Business households and individuals are not required to establish a council.

👉 The members of the Invoice Cancellation Council must sign the invoice cancellation minutes and take responsibility before the law for any errors.

👉 Invoice cancellation documents includes:

     ⚡ Decide to set up invoice cancellation council, except for business households and individuals;

     ⚡ Invoice inventory table to be cancelled, detailing: Name of invoice, symbol of invoice number, invoice symbol, number of cancelled invoices (from number... to number... or detail each invoice number if the invoice number to be canceled is not continuous);   

     ⚡ Invoice cancellation minutes;

     ⚡ The notice of invoice cancellation result must have the following contents: type, symbol, number of cancelled invoices from number... to number, reason for cancellation, date and time of cancellation, method of cancellation according to Form No. 02/HUY- Council Appendix IA issued together with this Decree.

Invoice cancellation documents shall be kept at enterprises, economic organizations, business households and individuals using invoices. The Notice of Invoice cancellation results shall be made in 02 copies, one copy shall be kept and the other shall be sent to the tax authority directly managing within 05 days from the date of cancellation of the invoice.

For old electronic invoices in use, enterprises should contact their electronic invoice solution provider to support the discontinuation procedures on the software to avoid the issue of still issuing invoices after converting to using electronic invoices according to Decree 123.

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