REFERENCES ON THE ISSUANCE OF TRADE DISCOUNT INVOICES ACCORDING TO DECREE 123/2020/ND-CP AND CIRCULAR 78/2021/TT-BTC

– At Point dd, Clause 6, Article 10 of Decree No. 123/2020/ND-CP dated October 19, 2020 of the Government providing for invoice content:

“Article 10. Contents of invoices

Name, unit, quantity and unit price of goods or services; amount without value-added tax, value-added tax rate, and the total payment amount of value-added tax with value-added tax.

dd) In case a discount or sales promotion is offered by the seller, the invoice must clearly specify that discount or sales promotion. The price on which VAT is imposed (VAT-exclusive price) in case of discount or sales promotion shall be determined in accordance with the Law on VAT.”

– In Clause 22, Article 7 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance guiding as follows:

“Article 7. Taxable prices

Taxable prices for goods and services specified from Clauses 1 to 21 of this Article include surcharges and additional charges in addition to the prices of goods and services to which business establishments are entitled.

If a business establishment applies the form of trade discount to customers (if any), the VAT taxable price is the discounted commercial selling price for the customer. If the trade discount is based on the quantity and sales of goods or services, the discount amount of the sold goods shall be adjusted on the goods and service sale invoice of the last purchase or the following period. If the discount amount is made at the end of the sales discount program (period), an adjusted invoice shall be issued with a list of the invoice numbers to be adjusted, the adjusted amount and tax amount. Based on the adjusted invoice, the seller and the buyer declare and adjust the sales and purchase revenue, output and input taxes.”

– At point e, Clause 1, Article 7 of Circular No. 78/2021/TT-BTC dated September 17, 2021 of the Ministry of Finance guiding as follows:

“Article 7. Handling of erroneous e-invoices and e-invoice datasheets sent to tax authorities

Erroneous e-invoices:

e) If the value specified in the invoice is wrong, an increase (“+” mark) or decrease (“-“ mark) shall be specified in the invoice according to the actual value.”

Pursuant to the above regulations and guidelines, refer to the following principle, if the Company is using e-invoices according to Decree No. 123/2020/ND-CP of the Government with trade discount applied at the end of the program (period) to discount goods sold to customers as prescribed by law, the trade discount must be clearly shown on the e-invoice, specifically:

– The Company shall issue an adjusted e-invoice, on the invoice it will be written: Adjustment due to trade discount (enclosed with a list of invoice numbers to be adjusted); the adjusted amount and tax amount (on the adjusted invoice the Company does not put a “-“ mark because this is not a case of incorrect invoice adjustment, this principle has also been guided by the Bac Ninh Tax Department through the official dispatch).

– Based on the adjusted invoice, the Company declares and adjusts sales revenue, output tax, and declares and adjusts purchased revenue and input tax (if any).