There are several instructions on handling invoices with errors which are specified in Decree No. 123/2020/ND-CP dated October 19th, 2020 of the government and Circular No. 78/2021/TT-BTC dated September 17th, 2021 of the Ministry of Finance as follows:
1. In case the seller discovers that there are errors in the digital invoice that has been issued with a code from the tax authorities and has not yet been sent to the buyer, the seller shall notify the tax authorities according to form No. 04/SS-HDDT, Appendix IA issued together with Decree No. 123/2020/ND-CP on cancelling digital invoices with erroneous codes and generating new digital invoices, digitally signing them and sending them to tax authorities to issue new codes that replace the generated invoices to send to buyers. The tax authorities shall cancel the digital invoices that have been issued with erroneous codes which are stored on the tax authorities’ system.
2. In case a digital invoice with the tax authorities’ code or a digital invoice without the tax authorities’ code has been sent to the buyer and the buyer or seller discovers errors, the matter shall be handled as follows:
a) In case there are errors in the buyer’s name and address, but the tax code is correct and other information is correct, then the seller notifies the buyer of the errors, but they do not have to re-issue the invoice. The seller must notify the tax authorities about the digital invoice with errors according to form No. 04/SS-HDĐT Appendix IA issued together with Decree No. 123/2020/ND-CP, except in the case that the digital invoice is without the tax authorities’ code in spite of the above errors and the invoice data have not been sent to the tax authorities.
b) In case of errors in: the tax code; the monetary amount stated in the invoice; the tax rate or tax amount; or if the goods listed on the invoice are not of the correct specifications or quality, there are two possible methods to choose from:
b1) The seller issues an adjusted invoice to correct the erroneous invoice. In case the seller and buyer have agreed to draw up a written agreement before generating an invoice to correct the erroneous invoice, then the seller and buyer shall make a written agreement clearly stating the errors, and the seller shall issue another digital invoice with adjustments to correct the erroneous invoice.
The digital invoices issued to correct the erroneous invoices must have the following line: “Adjustment for invoice form no…. type… number… day… month… year”.
b2) The seller issues a new digital invoice to replace the erroneous invoice unless the seller and buyer have agreed to draw up a written agreement before generating another invoice to replace the erroneous invoice, then the seller and buyer shall make a written agreement clearly stating the errors, and the seller shall issue another digital invoice to replace the erroneous invoice.
The new digital invoices that replace the erroneous invoices must have the following line: “To replace invoice form no…. type… number… day… month… year”.
The seller digitally signs the new adjusted or replacement digital invoice, then sends it to the buyer (in case of using a digital invoice without the tax authorities’ code) or send it to the tax authorities so that the tax authorities could issue a code for the new digital invoice to send to the buyer (in case of using a digital invoice with the tax authorities’ code).
In case the issued digital invoice has errors and the seller has resolved it through invoice adjustment or replacement as prescribed in Point b, Clause 2, Article 19 of Decree No. 123/2020/ND-CP, and the newly issued invoice continues to have errors, the seller will follow the method applied when resolving the errors for the first time.
c) For the aviation industry, exchange and return invoices from air transportation documents are considered adjustment invoices without the need to include the following information “Increase/decrease adjustment for invoice form no…. type… number… date… month … year”. Air transport companies are allowed to issue their own invoices for cases of return or exchange of air transportation documents issued by agents.
3. In case the tax authorities discover that the digital invoice with the tax authorities’ code or the digital invoice without the tax authorities’ code contains errors, the tax authorities shall notify the seller according to form No. 01/ TB-RSĐT Appendix IB issued together with Decree No. 123/2020/ND-CP for the seller to check for errors.
According to the notification time limit stated in form No. 01/TB-RSDT Appendix IB issued together with Decree No. 123/2020/ND-CP, the seller shall notify the tax authorities according to form No. 04/SS-HDĐT in Appendix IA issued together with Decree No. 123/2020 /ND-CP on checking digital invoices that have been issued with errors, in which it is specified that the basis for the checkup is form No. 01/TB-SRDT of the tax authorities (including digital data and the date of notification).
After the notification period specified in form No. 01/TB-RSDT Appendix IB expires, if the seller does not notify the tax authorities, the tax authorities shall continue to notify the seller a second time according to form No. 01/TB-RSDT Appendix IB. In case the second notification deadline is exceeded as specified in form No. 01/TB-RSDT Appendix IB and the seller still don not notify the tax authorities, then the tax authorities shall consider switching to inspecting the seller’s use of digital invoices.
4. Within 01 working day, the tax authorities shall notify the seller about the reception and processing results according to form No. 01/TB-HDSS Appendix IB issued together with Decree No. 123/2020/ND-CP. Cancelled digital invoices have no use value but are still stored for reference.
5. In case the issued digital invoice contains errors requiring the replacement of the tax authorities’ code or the digital invoice contains errors that need to be resolved in the form of adjustment or replacement invoice as prescribed in Article 19 of Decree No. 123/2020/ND-CP, the seller may choose to use form No. 04/SS-HDĐT in Appendix IA issued together with Decree No. 123/2020/ND-CP to notify the adjustment for each erroneous digital invoice or notify the adjustment to multiple erroneous digital invoices, then send a notice according to form No. 04/SS-HDĐT to the tax authorities at any time but no later than the last day of the tax declaration period for value-added taxes arising from adjustment invoices.
In case the seller issues an invoice when collecting money before or while providing the service as prescribed in Clause 2, Article 9 of Decree No. 123/2020/ND-CP, after which there is a cancellation or termination of the service, the seller shall cancel the digital invoice that has been generated and notify the tax authorities of the invoice cancellation according to form No. 04/SS-HDĐT in Appendix IA issued together with Decree No. 123/2020/ND- CP.
In cases where, according to regulations, a digital invoice is made without the invoice form number, or the invoice type, the invoice number contain errors, then the seller shall only make adjustments without cancelling or replacing.
Particularly for the number value on the invoice that contains errors: the adjustment must increase (represented by the positive sign) or decrease (represented by the negative sign) in accordance with the actual adjustment.
6. For digital invoice data summary table:
a) After the time limit for sending the summary table of digital invoice data to the tax authorities, in case of missing digital invoices in the summary table of digital invoice data sent to the tax authorities, the seller shall send an amended summary table;
b) In case the summary table of digital invoice data sent to the tax authorities contains errors, the seller shall send the adjusted information to supplement the declared data in the summary table;
c) To adjust invoices on the digital invoice data summary table as prescribed in Point a.1, Clause 3, Article 22 of Decree No. 123/2020/ND-CP, the following information must be filled: invoice form number, invoice type, invoice number. The information is to be filled in column 14 “relevant invoice information” of form No. 01/TH-HDĐT issued together with Decree No. 123/2020/ND-CP (except for digital invoices that do not require the invoice form number, invoice type, invoice number as prescribed in Clause 14, Article 10 of Decree No. 123/2020/ND-CP).
7. Additional supplements to the tax declaration dossiers related to the adjustment and replacement of digital invoices (including cancelled digital invoices) shall adhere to the provisions of the tax administration law.