Buzz
Decree 119/2018/NĐ-CP outlining the roadmap for electronic invoice usage has come into effect, mandating organizations and enterprises to transition to this invoice system. Below are the procedures for registering to use electronic invoices with and without codes from tax authorities for your reference.
Essential Facts About Electronic Invoices
Section I: Registration for Using Tax-Inclusive Electronic Invoices
For electronic invoices with tax agency codes, the system issues authentication codes stored by the General Department of Taxation, thus organizations and businesses are exempted from submitting usage reports.
1. Entities Eligible for Registering Tax-Inclusive Electronic Invoices
As per Decree 119/2018/ND-CP, entities including businesses, organizations, households, and individuals engaged in commercial activities using tax-inclusive electronic invoices are subject to the following conditions:
- Businesses, economic organizations, and other entities utilizing tax-inclusive electronic invoices for the sale of goods or provision of services, without differentiation based on individual transaction values. They also employ tax-inclusive electronic invoices for high-tax-risk situations.
- Households and individuals engaged in business activities, maintaining regular accounting records with a workforce of at least 10 and achieving annual revenues of at least 3 billion dong in agriculture, forestry, aquaculture, industry, construction, or revenues of at least 10 billion dong in trade and services, must use tax-inclusive electronic invoices. Those not mandatory but maintaining accounting records may also opt for tax-inclusive electronic invoices as per regulations.
2. Procedures for Registering Tax-Inclusive Electronic Invoices
Businesses and organizations registering for tax-inclusive electronic invoices from the Tax Department must comply with the following:
- Step 1: Visit the website gdt.gov.vn/wps/portal of the Tax Department.
- Step 2: Fill in accurate details on the registration/change form for using electronic invoices according to template 01.
- Step 3: Within one working day, the Tax Department will send a notification to the organization/business regarding approval or disapproval of the registration for using tax-inclusive electronic invoices.
If your organization/business is approved by the Tax Department, you can use tax-inclusive electronic invoices, canceling existing paper invoices (if any).
If there are changes in the registration information for using tax-inclusive electronic invoices, organizations and businesses need to update the information and resend it to the tax authority using form number 01.
Section II: Registration for Using Tax-Exclusive Electronic Invoices
Electronic invoices without codes resemble paper invoices but are processed via software; businesses must manage this data themselves instead of relying on the Tax Department.
1. Entities Eligible for Registering Tax-Exclusive Electronic Invoices
According to Article 2, Clause 11 of Decree 119/2018/ND-CP, businesses operating in sectors such as electricity; petroleum; postal services and telecommunications; air, road, rail, sea, and waterway transportation; water supply; finance and banking; insurance; healthcare; e-commerce; supermarket chains; and commerce, as well as economic organizations that have or will conduct transactions with the tax authority electronically, develop IT infrastructure, accounting software systems, electronic invoice software capable of issuance, inquiry, and storage as per regulations, and ensure the transmission of electronic invoices to buyers and the tax authority are eligible to use tax-exclusive electronic invoices (except as stipulated in Clause 3 of this Article and cases of registering for tax-inclusive electronic invoices) for the sale of goods or provision of services, without differentiation based on individual transaction values.
However, the aforementioned economic organizations, if classified as high-tax-risk, will transition to using authenticated electronic invoices when selling goods or providing services, without differentiation based on individual transaction values.
2. Procedures for Registering Tax-Exclusive Electronic Invoices
Businesses need to follow these steps:
- Step 1: Visit the website gdt.gov.vn/wps/portal of the Tax Department.
- Step 2: Fill in accurate and complete information on the registration/change form for using invoices according to template 01.
- Step 3: The tax authority will send a notification of acceptance or rejection of the registration for using tax-exclusive electronic invoices within approximately one working day.
If the tax authority does not accept, businesses need to register for tax-inclusive electronic invoices instead of tax-exclusive ones.
III. Form 1: Declaration for Registering/Updating Information for Using Electronic Invoices
We hope that with the sharing of procedures for registering tax-inclusive and tax-exclusive electronic invoices above, you have learned how to register for using these invoices.
