Legal updates

To improve problems arising from the practices of businesses and tax authorities in the process of using electronic invoices, the Ministry of Finance submitted to the Government a draft Decree amending and supplementing Decree 123/2020/ND -CP regulates invoices and documents.

Accordingly, some notable contents of the Draft are as follows:

Accordingly, the General Department of Taxation guides:
In case Company A (in Vietnam) signs a contract with Company B (in Hong Kong) to provide sample testing services for goods before being imported to Vietnam, this testing service is subject to subject to contractor tax in Vietnam.

In case an electronic invoice has been created according to Decree No. 123/2020/ND-CP, sent to the buyer and then errors are discovered in the seller’s address and other contents are correct, then:

The company notifies the buyer that the invoice has errors and does not have to re-issue the

Accordingly, in case the Company has a work item accepted in June 2023 but invoices are issued in July 2023, it is an act of invoicing at the wrong time and the 8% VAT rate under stipulated in Clause 1, Article 2 of Decree 44/2023/ND-CP dated June 30, 2023.

Accordingly, the General Department of Taxation guides:
In case Company A (in Vietnam) signs a contract with Company B (in Hong Kong) to provide sample testing services for goods before being imported to Vietnam, this testing service is subject to subject to contractor tax in Vietnam.

Accordingly, the Tax Department of Bac Ninh province instructs:

In case Company A is an export processing enterprise (EPE) lending machinery and equipment to Company B to serve the export processing activities of the DNCX, when lending machinery and equipment, Company A must make an invoice.

In case the Company is an EPE that liquidates fixed assets in the form of domestic sale, at the time of sale or liquidation into the domestic market , the export and import goods management policy shall not apply unless the goods are under management according to conditions, standards and specialized inspection that have not been implemented when imported; goods managed by license must be agreed in writing by the import licensing agency as prescribed in Article 26 of Decree 35/2022/ND-CP.

Accordingly, Vietnam Social Insurance stipulates the structure of payment content to help the social insurance agency crosscheck and record payment information quickly and accurately to serve the timely settlement of participants’ benefits, in accordance with the policy regime.

The General Department of Taxation received Official Dispatch No. 1770/CAT-CSKT dated March 29, 2023 from the Phu Tho Provincial Police, requesting direction and coordination in preventing crimes of illegal purchase and sale of electronic invoices. Accordingly, the Phu Tho Public Security Agency investigated and discovered that a number of individuals had purchased businesses to issue invoices, sold them to organizations and individuals in need, causing damage to the state budget.

Accordingly, to ensure the consistent implementation of the guidance of the General Department of Taxation (in Official Dispatch No. 2121/TCT-CS) on the use of electronic invoices, Ho Chi Minh City guides the following contents:

Regarding invoicing in case the buyer returns the goods due to improper specifications and quality:

In case the organization or individual buying the goods, the seller has issued an invoice, the buyer has received the goods, but then the buyer detects that the goods are not in accordance with the regulations, the quality must be returned in whole or in part, the seller makes an invoice to return the goods to reduce or replace the invoices made, the seller and the buyer have an agreement to specify the returned goods