05 notes on e-invoices applicable from November 1, 2021 that every accountant needs to know

✨ One of the hottest new policies today for organizations, businesses, and business households is the regulations related to e-invoices. Here are 5 points that any accountant holding work related to invoices and documents of the unit also needs to pay attention to. Tax agent TASCO will clearly state this content in the following article, invite customers and readers to refer!

1. Application of e-invoices in 6 provinces and cities

• Hanoi, City. Ho Chi Minh, Quang Ninh, Hai Phong, Phu Tho, and Binh Dinh will be the 06 localities to stop for paper invoices, from November 2021.
• In order to effectively implement e-invoices according to the new regulations, this Ministry plans to pilot implementation from November 2021 in 06 provinces and cities including Hanoi, Ho Chi Minh City, and Hanoi. Ho Chi Minh City, Hai Phong, Phu Tho, Quang Ninh, Binh Dinh.
• Thus, businesses in the above 06 provinces and cities should pay special attention to the pilot application of e-invoices from November 2021 in accordance with the provisions of Decree 123/2020/ND-CP and Circular No. 78/2021/TT-BTC.
• Across the country, from July 1, 2022, electronic invoices will be officially applied.

2. How to write an invoice when receiving VAT reduction from November 1, 2021

⭐ From November 1, 2021 to the end of December 31, 2021, many goods and services will be reduced VAT according to Resolution 406/2021/NQ-CP

⭐ Invoicing for goods and services eligible for VAT reduction is guided by Decree 92/2021/ND-CP as follows:

💢 In the case of VAT calculation by deduction method

• When making a value-added invoice for the provision of goods and services subject to value-added tax reduction, at the value-added tax rate line write "the prescribed tax rate (5% or 10%) x 70%”; value-added tax; the total amount to be paid by the buyer;

💢 In case of calculating VAT according to the method of percentage on revenue

• When making a sales invoice for the provision of goods and services subject to value-added tax reduction, in the column "Amount of money" write the full amount of goods and services before the reduction, in the line "Add goods, services" is recorded by the number that has reduced 30% of the percentage of revenue, and at the same time notes: "reduced... (amount) equivalent to 30% of the rate to calculate value-added tax according to Resolution No. 406/NQ-UBTVQH15”.

⭐ This is a very important note for accountants in invoicing from November 1, 2021.

3. Goods and services eligible for tax reduction need to be billed separately

📌 Resolution 406/NQ-UBTVQH15 stipulates a range of goods and services eligible for VAT reduction from November 1, 2021, to December 31, 2021, including:

• Transport services (rail transport, water transport, air transport, other road transport);
• Lodging; Food Service; services of travel agencies, tour operators, and support services, related to the promotion and organization of tours; Publishing products and services;
• Publishing products and services;
• Film services, television program production, sound recording and music publishing; artwork and creative, artistic, entertainment services;
• Services of libraries, archives, museums, and other cultural activities; sports, entertainment, and entertainment services.

📌 Does not include publishing software and goods and services produced and traded in the online form.

📌According to Clause 4, Article 3 of Decree 92 guiding Resolution 406, in case an enterprise or organization trades in many goods and services, when making invoices, the enterprise or organization shall make separate invoices for goods and services subject to a VAT reduction

4. Correction of errors when making invoices according to the unreduced tax rate

✅ Clause 5, Article 4 of Decree 92/2021/ND-CP shows clearly that in case an enterprise or organization has issued an invoice and declared at the tax rate or percentage to calculate VAT that has not been reduced, then :

• The seller and the buyer make a record or have a written agreement, clearly stating the error
• The seller issues a correcting invoice and delivers the correcting invoice to the buyer.

✅ Based on the completed invoice, the seller declares and adjusts the output tax, and the buyer declares the adjustment of input tax (if any).

5. How to handle invoices that are tickets with a pre-printed value

• If an enterprise or organization dealing in goods and services eligible for VAT reduction has issued an ordered invoice printed in the form of a ticket with a pre-printed face value that has not been used up yet and has a need to continue using it, according to Clause 6, Article 3 of Decree 92/2021/ND-CP, these businesses and organizations need to stamp according to the price reduced by 30% of the VAT rate or the price that has been reduced by 30% of the percentage rate, in addition to the criteria pre-printed price for continued use.

If you have any questions, please contact the hotline: 0975.48.08.68 for a free and direct consultation!

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