On October 7, 2022, the accountant discovered the above error and notified Company B. Company A and Company B made a document and wrote a replacement VAT invoice right on October 7, 2022. 

Mr. Nguyen Van Cuong asked, is it right or wrong for Company A to write such a replacement invoice? How to declare VAT if the VAT invoice dated October 7, 2022 replaces the invoice dated September 25, 2022? 

The Ministry of Finance responded to this issue as follows:

Pursuant to Decree No. 123/2020/ND-CP dated October 19, 2020 of the Government regulating invoices and documents:

Article 3 provides for the interpretation of terms:

“In this Decree, the following terms are construed as follows:

… 7. Lawful invoices and documents are invoices and vouchers that must be correct and complete in form and content as prescribed in this Decree…”.

Article 10 stipulates the content of the invoice.

Article 19 provides for handling invoices with errors:

"... 2. In case an e-invoice with a tax authority's code or an electronic invoice without a tax authority's code has been sent to the buyer and the buyer or seller detects that there is an error, the following actions shall be taken:

… b) Wrong case: Tax code; If the invoice amount is incorrect, the tax rate or tax is incorrect, or the goods listed on the invoice are not in accordance with the specifications and quality, you can choose one of two ways to use the e-invoice as follows:

b1) The seller issues an e-invoice correcting the erroneous invoice. In case the seller and the buyer have agreed on making a written agreement before issuing the invoice to adjust for the invoice already made with errors, the seller and the buyer shall make a written agreement clearly stating the error, then e-invoicing seller corrects errors in the invoice.

An e-invoice for adjustment of an e-invoice that has been made with errors must contain the words "Adjustment for invoice Model No... symbol... number... date... month...".

b2) The seller shall issue a new e-invoice to replace the erroneous e-invoice, unless the seller and the buyer have agreed on making a written agreement before issuing a replacement invoice for the wrong invoice already made, the seller and the buyer make a written agreement specifying the error, and then the seller issues an electronic invoice to replace the incorrect invoice.

New e-invoices to replace made-up e-invoices with errors must have the words "Replace the invoice Model No.... symbol... number... date... month... year".

The seller digitally signs the new e-invoice that corrects or replaces the erroneous e-invoice and then sends it to the buyer (for the case of using an e-invoice without the agency's code) or send it to the tax authority for the tax authority to issue a code for a new e-invoice to send to the buyer (for the case of using an e-invoice with a tax authority's code)...".

Pursuant to the Government's Decree No. 125/2020/ND-CP dated October 19, 2020 on penalties for administrative violations on taxes and invoices.

Pursuant to Article 47 of the Law on Tax Administration No. 38/2019/QH14 dated June 13, 2019 of the National Assembly:

"Article 47. Additional declaration of tax return

1. Taxpayers who discover that the tax declaration dossiers submitted to the tax authorities are incorrect or erroneous may additionally declare the tax declaration dossiers within 10 years from the expiration of the tax period submission deadline. there are errors or omissions, but before the tax authorities, the competent agencies announce the inspection and examination decisions.

2. When the tax authority or competent authority has announced the tax inspection and examination decision at the taxpayer's office, the taxpayer may still make additional declarations to the tax declaration dossier; tax authorities shall impose penalties for administrative violations of tax administration for the acts specified in Articles 142 and 143 of this Law...".

Pursuant to Clause 4, Article 7 of Decree 126/2020/ND-CP dated October 19, 2020 of the Government:

"4. Taxpayers may submit additional declarations for each tax return with errors according to the provisions of Article 47 of the Law on Tax Administration and according to the form prescribed by the Minister of Finance. Taxpayers make additional declarations as follows:

a) In case the additional declaration does not change the tax liability, only the explanation of the additional declaration and relevant documents must be submitted, the additional declaration is not required.

In case the annual tax finalization declaration has not been submitted, the taxpayer shall make additional declarations in the monthly and quarterly tax declaration dossiers with errors or omissions, and concurrently synthesize additional declaration data into the annual tax finalization declaration dossier.

If the annual tax finalization declaration has been submitted, only the annual tax finalization declaration shall be additionally declared; especially in case of additional declaration of personal income tax finalization declaration for organizations and individuals paying incomes from salaries and wages, they must also make additional declarations of monthly and quarterly declarations with corresponding errors and omissions.

b) If the taxpayer makes additional declarations leading to an increase in the payable tax amount or a decrease in the tax refunded by the state budget, he/she must fully pay the additional payable tax amount or the overpaid tax amount and late payment interest to the state budget (if any).

In case the additional declaration only increases or decreases the amount of VAT still deductible, it must be declared in the current tax period. Taxpayers are only allowed to make additional declarations to increase the VAT amount requested for refund when they have not yet submitted the tax return of the next tax period and have not submitted the application for tax refund.

Pursuant to the above provisions, in case an e-invoice has been made and sent to the buyer, detecting that there is an error in the buyer's tax identification number, the company shall handle the e-invoice made with errors according to the instructions at Point a of this Clause. Point b, Clause 2, Article 9 of Decree No. 123/2020/ND-CP dated October 19, 2020 of the Government.

A legal invoice is an invoice that is correct and complete in form and content as prescribed in Decree No. 123/2020/ND-CP.

In case the company issues an adjusted invoice or a replacement invoice according to the provisions of Article 19 of Decree No. 123/2020/ND-CP above, the company shall declare tax on these invoices according to regulations in Article 47 of the Law on Tax Administration No. 38/2019/QH14 dated June 13, 2019 of the National Assembly and Clause 4, Article 7 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government.