05 NOTES ON E-INVOICES APPLICABLE FROM NOVEMBER 1, 2021 THAT EVERY ACCOUNTANT NEEDS TO KNOW

1. Pilot application of e-invoices in 6 provinces and cities

Hanoi, Ho Chi Minh City, Quang Ninh, Hai Phong, Phu Tho and Binh Dinh will be the 06 localities to start piloting the "death" for paper invoices, from November 2021.

In order to effectively implement e-invoices according to the new regulations, plan to pilot implementation from November 2021 in 06 provinces and cities including: Hanoi, Ho Chi Minh City and Hanoi. Ho Chi Minh City, Hai Phong, Phu Tho, Quang Ninh, Binh Dinh.

Thus, businesses in the above 06 provinces and cities should pay special attention to the pilot application of e-invoices from November 2021 in accordance with the provisions of Decree 123/2020/ND-CP and Circular No. 78/2021/TT-BTC.

Across the country, from July 1, 2022, e-invoices will be officially applied.

2. How to write an invoice when receiving VAT reduction from November 1, 2021

From November 1, 2021 to the end of December 31, 2021, many goods and services will be reduced VAT in the spirit of Resolution 406/2021/NQ-CP

Invoicing for goods and services eligible for VAT reduction is guided by Decree 92/2021/ND-CP as follows:

- In case of calculating VAT by deduction method

When making a VAT invoice for the provision of goods and services subject to VAT reduction, at the VAT rate line write "the prescribed tax rate (5% or 10%) x 70%”; value added tax; the total amount to be paid by the buyer;

- In case of calculating VAT by the percentage method on revenue

When making a sales invoice for the provision of goods and services subject to VAT reduction, in the column "Amount of money" write the full amount of goods and services before reduction, in the line "Add goods, services" is recorded by the number that has reduced 30% of the percentage of revenue, and at the same time notes: "reduced... (amount) equivalent to 30% of the rate to calculate VAT according to Resolution No. 406/NQ-UBTVQH15”.

This is a very important note for accountants in invoicing from November 1, 2021.

3. A separate invoice must be made for each goods and service eligible for tax reduction

Resolution 406 stipulates a series of goods and services eligible for VAT reduction from November 1, 2021 to December 31, 2021, including:

1️⃣ Transport services (rail transport, water transport, air transport, other road transport);

2️⃣ Accommodation Service; Food Service; services of travel agencies, tour operators and support services, related to the promotion and organization of tours;

3️⃣ Publishing products and services;

4️⃣ Film services, television program production, sound recording and music publishing; art works and services of creation, art, entertainment;

5️⃣ Services of libraries, archives, museums and other cultural activities; sports, entertainment services.

✔️ Does not include publishing software and goods and services produced and traded in the form of online.

According to Clause 4, Article 3 of Decree 92 guiding Resolution 406, in case an enterprise or organization trades in many goods and services, when making invoices, the enterprise or organization shall make separate invoices for goods and services eligible for VAT reduction.

4. Correct mistakes when making invoices according to the unreduced tax rate

Clause 5, Article 4 of Decree 92/2021/ND-CP clearly states that, in case an enterprise or organization has issued an invoice and declared at the tax rate or percentage level to calculate VAT that has not been reduced, then:

- The seller and the buyer make a record or have a written agreement, clearly stating the mistakes.

- The seller issues a correction invoice and delivers the correcting invoice to the buyer.

Based on the adjusted invoice, the seller declares and adjusts the output tax, and the buyer declares the adjustment of input tax (if any).

5. How to handle invoices that are tickets with pre-printed face value

If an enterprise or organization trading in goods and services eligible for VAT reduction has issued an ordered invoice printed in the form of a ticket with a pre-printed face value that has not been used up yet and has a need to continue using it, according to Clause 6 Article 3 of Decree 92, these businesses and organizations need to stamp according to the price that has been reduced by 30% of the VAT rate or the price that has been reduced by 30% of the percentage rate, in addition to the pre-printed price criteria to continue using.

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