PRINCIPLES OF CREATION OF INVOICES AND INVOICING TIME

PRINCIPLES OF CREATION OF INVOICES AND INVOICING TIME

Pursuant to Decree No. 123/2020/ND-CP dated October 19, 2020 and Circular No. 78/2021/TT-BTC dated September 17, 2021.

I. PRINCIPLES OF CREATION OF INVOICES

When selling goods or providing services, the seller must create an invoice to the buyer (including goods or services for promotion or advertising or used as samples; goods and services donated, granted, presented as gifts, exchanged or given as salary for employees and for internal consumption (except goods internally circulated for further production); and goods loaned, lent or returned and must fill in all contents as required

II. INVOICING TIME

1. The time of creating an invoice for goods sale (including sale of state property, property confiscated and expropriated to the state fund and sales of national reserve commodities) is the time of transfer of the right to own or use goods to the buyer, regardless of whether the invoiced amount is paid or not.

2. The time of creating an invoice for service provision shall be the time of completion of provision of services, regardless of whether the invoiced amount is paid or not. When the service provider collects service charges before or upon providing the service, the date of making out the invoice is the date of collecting charges (excluding the case of collecting deposits or advances to ensure the performance of contracts of providing the following services: Accounting, audit, financial and tax consultancy; valuation; technical survey and design; supervision consultancy; and formulation of a construction investment project).

3. The time of creating an invoice for some specific cases:

a. For construction and installation, the time of creating an invoice shall be the time of acceptance or handover of works, work items, construction and installation volumes, whether the invoiced amount is paid or not.

b. For cases of providing large quantities of services, which arise regularly, and take time to check data between service providers and customers, partners, as in the case of electricity supply activities, water, television services, postal services transmission, telecommunications services, logistics services, ... that are sold in a certain period, the time of creating an invoice shall be the time of completion of data checking between the parties but not later than the 7th of the month preceding the month when the service provision arises or not more than 07 days from the end of the conventional period.

c. For organizations dealing in real estate, infrastructure construction or residential building for sale or transfer:

- In case the ownership or use right has not been transferred yet: If the payment is made according to the project implementation schedule or the payment schedule specified in the contract, the time of creating an invoice shall be the date of payment or the date as agreed in the contractual payment agreement.

- In case the ownership or use right has been transferred: The time of creating an invoice shall be the time of the ownership or use right has been transferred.

d. For retail commercial establishments, food and beverage establishments under the model of a system of stores selling directly to consumers, but the accounting of all business activities is carried out at the head office, the cash register system connected to the computer has not met the conditions for connecting and transferring data with the tax agency, customers shall receive the printed receipt for every transaction of selling goods, providing food and beverage, the data of such receipts is achieved in the system and the customers do not wish to receive e-invoices, at the end of the day, the business establishment shall base on information from the receipts to synthesize and create e-invoices for goods sale, food and beverage provision transactions during the day. In case customers require e-invoices, the business establishment shall issue e-invoices for customers.