Tax Alert July 2018 The Draft Decree on Electronic Invoice

Transcription

1 Tax Alert July 2018 The Draft Decree on Electronic Invoice July 2018 Tax Update Page 1

2 The draft Decree on Electronic Invoice (E-invoice) of the Government regulating e-invoices for sale of goods and services has been submitted to the members of the Government for review and comment. Below are the key points under the draft Decree: Subjects of application and effective date Characteristics of e-invoices Forms of e-invoices Conversion to paper invoices Building database on e-invoices Organizations providing services on e-invoices July 2018 Tax Update Page 2

3 Subjects of application and effective date The Decree will be applied to all enterprises established and operating under the provisions of Vietnamese laws and take effect after 45 days from the signing date. Decree No. 51/2010/ND- CP dated 14/05/2010 and Decree No. 04/2014/ND-CP dated 17/01/2014 of the Government regulating invoices for sale of goods and services will be expired after 24 months from the effective date of the new Decree. Thus, enterprises will have a period of 24 months from the effective date of the new Decree to make the transition to e-invoice. Characteristics of e-invoices E-invoices are issued in a standard format and are subject to the management of the tax authorities via the link to the e-invoice database of the tax department. Forms of e-invoices There are two forms of e-invoices: E-invoices with or without the verification code of the tax authorities. E-invoices without the verification code will be directly connected to the e-invoice database of the tax department; and will be applicable to enterprises doing business in the fields of electricity; petroleum; posts and telecommunication; air, road, rail, sea, and waterway transportation; clean water; credit financing; insurrance; medical; e- commerce business; supermarket; commercial and enterprises, or economic organizations which have or will conduct transactions with the tax authorities by electronic means and satisfy the conditions for softwares, data transfer and storage, etc. For the remaining cases using e-invoices with the verification code of the tax authorities, the seller issues and digitally signs e-invoices on the web portal of the General Taxation Department (GDT) or using services of Taxation- Value Added Network providers (T-VAN) supplying compatible software, data transfer and storage, etc. July 2018 Tax Update Page 3

4 Conversion to paper invoices The conversion of e-invoices into paper invoices is only for the purpose of recording and monitoring in accordance with the Law on Accounting and is NOT valid for executing transaction or payment. For goods in transit, authorities or competent people can access the Web Portal of the GDT for detail information. Building database on e-invoices The tax authorities will be responsible for building, collecting, processing, and sharing data of e-invoice for related organizations. Organizations providing services on e-invoices Eligible organizations operating in information technology field are allowed to provice e- invoices services. July 2018 Tax Update Page 4

5 Contact Please contact the below EY professionals from Ernst & Young Vietnam Limited for more information on this update or our Tax & Advisory Services: Ha Noi Office Huong Vu Trang Pham Nhung Nguyen Executive Director Japanese Business Services Junichi Harada Korean Business Services Kyung Hoon Han Ho Chi Minh Office Robert King Manager Manager EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com Ernst & Young Vietnam Limited. All Rights Reserved. VN No ED None This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax or other professional advice. Please refer to your advisors for specific advice. ey.com Thinh Xuan Than thinh.xuan.than@vn.ey.com Phat Tan Nguyen phat.tan.nguyen@vn.ey.com Thy Anh Huynh thy.anh.huynh@vn.ey.com Japanese Business Services Takahisa Onose takahisa.onose@vn.ey.com Korean Business Services Cheon Ju Lee cheon.ju.lee@vn.ey.com Director July 2018 Tax Update Page 5