Instructions on how to account for returned sales invoices

1. Documents and documents when returning sold goods:

1.1. For buyers who are individual:

️⛳ The buyer is an individual or an organization that does not have the function of issuing invoices, the two parties shall make a dossier, including:

✔ Make a record clearly stating the criteria: type of goods, quantity, the value of returned goods at the tax-exclusive price, VAT amount according to the issued sales invoice (including the number of symbols, date, and month of the invoices);

✔ State the reason for returning the goods and the compensation agreement (if any);

✔ Recall the issued invoice or make a record of the withdrawal of the issued invoice.

1.2. For buyers who are business:

✔ The two parties make a record of returning goods similar to the case where the buyer returns the goods as an individual.

✔ Buyer issues a return invoice (in whole or in part depending on the number of goods returned).

Note: Specify the reason for the return on the invoice.

2. Instructions on how to account for returned sales invoices:

2.1. For the seller:

✅ Invoices to be returned in any period shall be declared in that period;

✅ Based on the tax rate of the returned goods, declare the corresponding items on the declaration 01/GTGT, from there, subtract the revenue and tax rate on returned sales from the revenue and tax rate on that item.

✅ Calculation method:

👉 When issuing sale invoice:

➥ Revenue Recognition:

                          Dr. 111, 112, 131

                               Cr.  511

                                Cr. 33311

➥ Cost of Cost Recognition:

                          Dr. 632

                                Cr. 156

👉 When receiving returned sales invoices:

➥ When entering the warehouse:

                           Dr 156: Cost of returned goods sold.

                                  Cr 632: Cost of returned goods sold.

➥ Record decrease in Revenue:

                           Dr 5212: Returned goods sold (Amount before tax) (If according to Circular 200)

                           Dr 511: (If according to Circular 133)

                           Dr 33311: (VAT amount on returned goods) (If any)

                                  Cr. 111, 112, 131,..: Total amount on the invoice.

➥ If there are costs involved in the return process:

                           Dr 641: Selling expenses (According to Circular 200)

                           Dr 6421: Selling expenses (According to Circular 133)

                                  Cr. 111, 112,...

➥ At the end of the transition period

                           Dr 511: Sales and service provision (5111, 5112)

                                  Cr 5212: Returned goods sold.

2.2. For the buyer:

🔰Take the value and tax rate of goods purchased for the period minus the value and tax rate of the goods returned.

🔰 Calculation method:

👉 When buying:

                           Dr. 156, 152, 153, 211,...

                           Dr 1331 (if any)

                                  Cr. 111, 112, 331.

👉 When issuing an invoice to return goods:

                           Dr 331/1111/112: Total value of returned goods;

                                  Cr. 156/152/211…: Value of returned goods;

                                  Cr. 133: VAT on returned goods.

➥ Note: In some cases where the buyer is the one who does not have an invoice, he/she has been specifically instructed according to Circular 39/2014/TT-BTC in Appendix 4, Point 2.8, on invoicing as follows:

✔️ “Organizations and individuals purchase goods, the seller has issued an invoice, the buyer has received the goods, but then the buyer discovers that the goods are not in accordance with the specifications and quality, they must return all or part of the goods. When returning goods to the seller, the establishment must issue an invoice, clearly stating the goods returned to the seller due to improper specifications, quality, and VAT (if any). "

✔️ This invoice is the basis for the seller and the buyer to adjust the purchase and sale turnover and the declared VAT amount. When declaring on the declaration Form 01/GTGT, the parties all declare the decrease. The seller adjusts the sales revenue, the buyer reduces the purchase revenue (Note, from January 1, 2015, there is no longer PL 01-1/GTGT ​​and Appendix 02-1/GTGT)

✔️ In case the buyer is an entity without an invoice when returning the goods, the buyer and the seller must make a record or agree in writing clearly stating the type of goods, quantity, and value of returned goods at price without VAT, VAT amount according to the sales invoice (signature number, date, month of the invoice), the reason for the return, enclosed with the invoice delivered to the customer and sent to the seller. This record is kept together with the sales invoice to serve as a basis for adjusting the declaration of sales and VAT.

✔️ In case the seller has shipped the goods and issued an invoice, the buyer has not received the goods but discovers that the goods are not in accordance with the specifications and quality, must return the whole goods, or a part of the goods, when returning goods, the buyer and seller must make a record specifying the type of goods, quantity, value excluding VAT, and VAT amount and reason for the return of goods according to the sales invoice (number, symbol, date of the invoice) along with an invoice to send back to the seller that the seller can re-issue a VAT invoice for the number of goods received and serve as a basis for the seller to adjust sales and output VAT.

✔️  If the buyer does not have an invoice when returning the goods, the buyer and the seller must make a record clearly stating the type of goods, quantity, and value of the returned goods at the VAT-exclusive price, the amount of VAT. according to the sales invoice (signature number, date, month of the invoice), the reason for the return of the goods, and the seller withdraws the issued invoice.

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