Official Letter 5027/CTDON-TTHT on Handling Electronic Invoices for Returned (Exchanged) Goods

TAX DEPARTMENT DONG NAI PROVINCIAL TAX DEPARTMENT No: 5027/CTDON-TTHT Regarding the handling of electronic invoices for returned (exchanged) goods

SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness Đồng Nai, ngày 25 tháng 6 năm 2024

 

To:	Growmax Seafood Feed Co., Ltd. Address: Lot F, Loc An - Binh Son Industrial Park, Long An Commune, Long Thanh District, Dong Nai Province Tax Identification Number: 3603686923

 

The Dong Nai Provincial Tax Department has received Inquiry No. 1003/2024/GX-CT dated May 24, 2024, from Growmax Seafood Feed Co., Ltd. (hereinafter referred to as the Company) regarding the handling of electronic invoices for returned (exchanged) goods. In response, the Dong Nai Provincial Tax Department provides the following guidance:

Pursuant to Clause 1, Article 4 of Decree No. 123/2020/ND-CP dated October 19, 2020, by the Government on the principles for the preparation, management, and use of invoices and documents:

Article 4. Principles for preparation, management, and use of invoices and documents

1. When selling goods or providing services, the seller must issue an invoice to the buyer (including cases of goods or services used for promotion, advertising, samples; goods or services given as gifts, donations, exchanges, or paid in lieu of wages for workers, and for internal consumption (except goods circulated internally for further production); goods issued under loan, borrowing, or return agreements) and must record full details as stipulated in Article 10 of this Decree. In case of using electronic invoices, the format must comply with the tax authority’s data standard as stipulated in Article 12 of this Decree.

According to point b, Clause 2, Article 19 of Decree No. 123/2020/ND-CP dated October 19, 2020, which regulates the handling of invoices with errors:

Clause 2. In case of errors in electronic invoices with or without tax authority codes sent to the buyer:

b) If there is an error in the tax code, amount, tax rate, or description of goods on the invoice, one of the following methods can be chosen for handling the electronic invoice:

b1) The seller issues an electronic invoice to correct the previously issued erroneous invoice. If the seller and the buyer agree to make a written agreement before issuing the correcting invoice, both parties must clearly state the error in the written document, after which the seller will issue the corrected electronic invoice.

The electronic invoice correcting the error must state "Correction for invoice Model number... code... number... date... month... year".

b2) The seller issues a new electronic invoice to replace the erroneous one, unless the seller and buyer have agreed in writing before the replacement invoice is issued, in which case they must record the error in the written document, and the seller will then issue a replacement electronic invoice.

The new electronic invoice replacing the erroneous one must state "Replacing invoice Model number... code... number... date... month... year".

The seller must digitally sign the new electronic invoice and send it to the buyer (for cases of electronic invoices without a tax authority code) or to the tax authority for the issuance of a code for the new invoice to send to the buyer (for cases of electronic invoices with a tax authority code).

Based on the above guidelines, if the Company, as the seller, accepts the return of goods (nearing expiration), either partially or completely, the Company must issue a corrective or replacement invoice for the previously issued invoice, in accordance with Clause 1, Article 4 and point b, Clause 2, Article 19 of Decree No. 123/2020/ND-CP dated October 19, 2020. Simultaneously, the Company must issue a new invoice when delivering new goods to the buyer as per the regulations.

The Dong Nai Provincial Tax Department informs the Company and requests compliance with the regulations outlined in the relevant legal documents.

Recipient: As above; General Department of Taxation (for information); Leadership of the Tax Department (for information); Website of Dong Nai Tax Department; Department of Personal Data and Taxpayer Rights, Inspection Division 5; File: VT, TTHT (Trang, 2b)

ON BEHALF OF THE DIRECTOR DEPUTY DIRECTOR     Nguyen Van Vien

See details here.