Mrs. Thao asked, how should her company handle this situation? If they haven't canceled the old invoices in 2022, do they still need to submit a report on the use of invoices in 2022?

The Hanoi Tax Department responded to this issue as follows:

Based on Decree No. 123/2020/NĐ-CP on invoices and documents:

Article 15, Section 3 provides as follows:

"3. From the time the tax authority accepts the registration of electronic invoices according to the provisions of this Decree, enterprises, economic organizations, other organizations, households, and individuals doing business must stop using electronic invoices that have been announced to be issued according to previous regulations, destroy unused paper invoices that have been announced to be issued (if any). The order and procedures for destruction shall be carried out in accordance with Article 27 of this Decree."

Article 27 regulates the destruction of printed invoices purchased from the tax authority:

"1. Enterprises, economic organizations, households, and individuals doing business who have invoices that are no longer in use must destroy the invoices. The deadline for invoice destruction is no later than 30 days from the date of notification to the tax authority. In the case where the tax authority has notified that the invoices have expired (except in cases where the notification is due to tax enforcement measures), the enterprise, economic organization, household, and individual doing business must destroy the invoices. The deadline for invoice destruction is no later than 10 days from the date of the tax authority's notification of the expiration or from the date the lost invoices are found.

Types of invoices that have been created by accounting units are cancelled in accordance with the regulations on accounting laws.

Types of invoices that have not been issued but are physical evidence of criminal cases shall not be destroyed but handled in accordance with the law.

2. The destruction of invoices by enterprises, economic organizations, households, and individuals conducting business is carried out as follows:

a) Enterprises, economic organizations, households, and individuals conducting business must prepare a list of invoices to be destroyed.

b) Enterprises and economic organizations must establish a Council for the destruction of invoices. The invoice destruction council must have representatives of the organization's leadership and accounting department. Households and individuals conducting business do not have to establish a council when destroying invoices.

c) Members of the invoice destruction council must sign the invoice destruction record and take responsibility before the law for any errors.

d) The file for destroying invoices includes:

• The decision to establish the Invoice Destruction Council, except for individuals and businesses;

• The inventory list of invoices to be destroyed, specifying: the name of the invoice, the model code, the invoice symbol, the number of invoices to be destroyed (from number... to number... or specifying each invoice number if the invoices to be destroyed are not continuous);

• The record of invoice destruction;

• The notice of invoice destruction results must include the following information: type, symbol, the number of invoices destroyed from number... to number..., reason for destruction, date and time of destruction, and the destruction method according to Form 02/HUY-HDG Appendix IA issued with this Decree.

The file for destroying invoices is kept by the individual, business, or organization using the invoices. Only the notice of invoice destruction results will be prepared in two copies, one for retention and one to be sent to the tax authority directly managing the business, and it must be sent no later than 5 days after the date of invoice destruction.

3. Destruction of invoices by tax authorities

a) Tax authorities carry out the destruction of invoices that were printed by the Tax Printing House but have not been sold or issued and will not be used anymore.

b) The General Department of Taxation is responsible for regulating the procedure for destroying invoices printed by the Tax Printing House.”

Administrative penalties for violations related to invoices

Based on Article 27 of the Decree No. 125/2020/NĐ-CP dated October 19, 2020 of the Government on penalties for administrative violations in tax and invoice regulations:

"Article 27. Penalties for violating regulations on cancellation and destruction of invoices

1. Warning for the act of cancelling or destroying invoices beyond the deadline from 01 to 05 working days, from the expiration date of the requirement to cancel or destroy invoices as prescribed, with extenuating circumstances.

2. A fine of between 2,000,000 VND and 4,000,000 VND for one of the following acts:

a) Incorrectly cancelling the issued invoices but not creating them, or cancelling invoices that are no longer valid;

b) Not cancelling the issued invoices that are no longer valid or not cancelling invoices purchased by the tax authority after the expiry date;

c) Cancelling or destroying invoices beyond the deadline from 01 to 10 working days, from the expiration date of the requirement to cancel or destroy invoices as prescribed, except as prescribed in Paragraph 1 of this Article.

3. A fine of VND 4,000,000 to VND 8,000,000 shall be imposed for one of the following violations:

a) Cancelling, destroying invoices beyond the deadline of 11 working days from the expiration date for cancelling, destroying invoices as prescribed;

b) Failing to cancel, destroy invoices as prescribed by law;

c) Failing to cancel electronic invoices when making mistakes after the tax authority has notified the seller to check for errors;

d) Failing to cancel invoices that have not been issued but are no longer in use according to regulations;

e) Destroying invoices inappropriately in cases that require destruction as prescribed.

4. Remedial measures: Compulsory cancellation, destruction of invoices for violations specified in Point b of Clause 2, Point b, c, d of Clause 3 of this Article.

Based on the regulation above, the Hanoi Tax Department provides the following principle:

From the time the tax authority accepts the registration to use electronic invoices according to the provisions of Decree No. 123/2020/NĐ-CP, businesses, economic organizations, other organizations, households, and individuals engaged in business must stop using electronic invoices that have been previously notified according to previous regulations, and destroy unused paper invoices that have been previously notified (if any) according to the provisions in Clause 3, Article 15 of Decree No. 123/2020/NĐ-CP.

The procedures, processes, and documents for destroying invoices shall be implemented according to the regulations in Article 27 of Decree No. 123/2020/NĐ-CP.

The results of destroying invoices shall be recorded in two copies, one for retention and one to be sent to the tax authority directly managing the taxpayer no later than 5 days from the date of destroying the invoices.

Violations of the destruction of invoices shall be subject to administrative penalties for invoice violations according to the provisions of Article 27 of Decree No. 125/2020/NĐ-CP dated October 19, 2020.

Mrs. Thao is advised to contact the tax authority directly managing her for guidance according to the regulations.