INSTRUCTIONS FOR E-INVOICING AUTHORIZATION ACCORDING TO CIRCULAR 78

The Ministry of Finance has just issued Circular No. 78/2021/TT-BTC guiding invoices and documents, effective from July 1, 2022. The Circular has specifically guided new points on authorization to make e-invoices. Accordingly, goods sellers and service providers who are enterprises or economic organizations that do not directly issue invoices may authorize a third party to issue e-invoices. TASCO Tax Agent invites customers and readers to consult!

Content:

⚡ What is e-invoicing authorization?

⚡ Principles of e-invoicing authorization

⚡ Notify the authorization to the tax authority

⚡ Authorization contract/authorization agreement

1. What is e-invoicing authorization?

Authorization to make e-invoices is when an economic organization, enterprise or other organization that sells goods or provides services assigns a third party to issue an e-invoice, that the making of this invoice is the responsibility of the business, economic organization or organization that sells or provides that service.

The authorization includes two parties, including:

👉 The authorizing party is: an economic organization, an enterprise or another organization that sells goods or provides services.

👉 The authorized party is: The third party has an affiliated relationship with the seller, and must be eligible to use e-invoices and not in the case of discontinuing use of e-invoices.

2. Principles of e-invoicing authorization:

Pursuant to the provisions of Article 3 of Circular No. 78/2021/TT-BTC guiding as follows:

✔️ The seller of goods, providing services is an enterprise, economic organization, or other organization that is authorized to a third party (a party that has an affiliated relationship with the seller, and must be eligible to use e-invoices and not in the case of discontinuing use of e-invoices) issue e-invoices for the sale of goods and services.

Affiliate relationship is determined according to the provisions of the tax management law.

✔️ E-invoicing authorization must be made in writing (contract or agreement) between the authorizing party and the authorized party.

Along with that, the Circular also clearly states that the authorization is determined as a change in the use of e-invoices registration information, so the authorizing party and the authorized party must notify the tax authority according to regulations in Article 15 of Decree No. 123/2020/ND-CP.

✔️ An electronic invoice made by an authorized organization is an electronic invoice with or without the tax authority's code and must show the names, addresses, and tax identification numbers of both parties.

✔️ The authorizing party and the authorized party are responsible for posting on the website of their unit or making a public announcement on the mass media so that the buyer of goods or services is aware of the authorization to issue invoices.

When the authorization period expires or the authorization expires before the time limit for e-invoice making as agreed between the parties, the authorizing party or the authorized party cancel the listings and announcements on the website of their units or or making a public announcement on the mass media about the authorization to issue invoices.

✔️ In case the authorized invoice is an e-invoice without a tax authority's code, the authorizing party must transfer the e-invoice data to the direct management tax authority or through a service provider to transfer e-invoice data to the direct management tax authority.

✔️ The authorized party is responsible for making the authorized e-invoice according to the actual arising, according to the agreement with the authorizing party and complying with the principle of authorizing invoicing as prescribed.

Previously, in Decree No. 119/2018/ND-CP and Circular No. 68/2019/TT-BTC there were no regulations on e-invoicing authorization.

3. Notify the authorization to the tax authority:

The principle when authorizing an invoice is to notify the tax authority, the notification is done as follows:

💥 Invoice authorization is determined as a case of changing the use of e-invoices registration information according to the provisions of Article 15 of Decree 123/2020/ND-CP.

The two parties use Form No. 01DKTD/HDĐT issued together with Decree 123 to notify the tax authority of the e-invoices authorization, including the case of termination before the deadline for e-invoicing authorization according to the agreement.

💥 The two parties fill in the other party's information in Form No. 01DKTD/HDDT as follows:

+ For the authorizing party and the authorized party in Part 5 "List of digital certificates in use", fill in the full information of the digital certificates used by both parties.

+ For the authorized party in column 5, Part 6, "Invoices authorization registration", fill in the name, authorizing organization and authorizing party’s tax identification number.

4. Authorization contract/authorization agreement:

- The invoices authorization must be shown in writing as a contract or agreement.

- The content of the authorization contract or agreement must fully show the following information:

📌 Names, addresses, tax identification numbers and digital certificates of both parties.

📌 Authorized e-invoices information (invoice type, invoice model number, invoice symbol).

📌 Authorize purposes.

📌 Time limit for invoice authorization.

📌 Authorized invoices payment method (specify the responsibility to pay for goods and services on the authorized invoice).

- The two parties are responsible for storing the authorization document (contract or agreement) and presenting it when the competent authority requests.

Currently, regulations on e-invoices and how to use and convert them are one of the "hottest" issues for businesses, business organizations, and business households in the whole country. Lots of legal documents have been issued in response to the actual development situation, so entrepreneurs need to update in time to avoid violating the legal regulations on e-invoices. Please contact TASCO Tax Agent immediately for advice if customers have any questions related to this issue via hotline: 0975480868 (Zalo) or the contact methods below!

 

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