Expand scope of electronic invoice application
VCN – in 2010, the Government issued Decree No. 51/2010/ND-CP stipulating invoices for sales of goods and services. In 2014, this Decree was amended and supplemented by Decree 04/2014/ND-CP. Two decrees have changed the method of invoice management, contributed to risk management and matched with international practices. However, due to changes from the actual situation, the amendments and supplements are unavoidable.
656 enterprises use electronic invoices
According to the Ministry of Finance, Decree on invoices has changed the method of invoice issuance and management of enterprises from the mechanism of “buying tax invoices of tax offices to “using self-printed invoices or printed invoices on order”. And changing the method of invoice management (paper) of the tax offices by decentralizing the local tax departments to order the invoice printing to sell organizations and individuals who are not enterprises but have business activities.
Thus, this provision has created an innovation in granting autonomy in invoices for enterprises, contributed to the reform of administrative procedures and raise the responsibility of local tax authorities in the invoice management. In addition, Decree No. 51 on invoices with the basic content of the issuance and use of paper invoices, but there are regulations on electronic invoices. The addition of e-invoice form plays an important role in creating a legal basis for enterprises to modernize corporate governance in line with the development of modern society.
Regulations on risky enterprises required to purchase invoices from the tax authorities for use within 12 months; Business households not allowed to use printed invoices on order or self-printed invoices and newly established enterprises required to notify the tax authorities for using printed invoices on order or self-printed invoices at the first time have partly restricted the status that business households and enterprises use printed invoices on order or self-printed invoices for illegal invoicing and illegal use, causing the loss of state revenues and trade fraud, and affecting the economy.
Decrees on invoices have contributed to enhancing the IT application in invoice management such as: To standardize the process of internal tax management, inspection and examination in tax offices, to develop software to update the issued invoices and invalid invoices with aim to support enterprises and tax offices in checking the invoices of enterprises that have issued invoices and invoices of enterprises that have escaped.
The application of electronic invoices selected by enterprises has also brought many benefits. At present, 656 enterprises use electronic invoices with the used number of about 277.98 million / 2016 over the country, but mainly in two major cities, Hanoi and Ho Chi Minh City where there are many large enterprises operating in the field of trade, services, developed IT infrastructure (such as the Vietnam Electricity Group, Vietnam Posts and Telecommunications Group, Vietnam Military Telecommunications Group, Vietnam Airlines Corporation, Sai Gon-Hanoi Railway Transport Corporation., etc).
The application of electronic invoices of the above enterprises has received good assessment and support from customers, brought practical benefits and save time and costs for enterprises, thereby boosting the IT application in business management and accounting and raising the efficiency of production and business, service quality and the competitiveness of enterprises. For customers, their habit of using paper invoices has gradually changed, they have cooperated with enterprises in using electronic invoices, which help them feel convenient in payment and access the website of the seller to view and download invoices as needed. Hence, they do not have to store and preserve invoices, avoiding the risk of loss of invoices and saving costs of invoice printing.
In particular, the pilot use of electronic invoices with tax code has contributed to reducing the time and costs for enterprises and limiting the invoice fraud. Currently, 315 enterprises have registered with the tax offices to issue invoices with the tax code. Of which, there are 201 enterprises in Hanoi and 114 enterprises in the Ho Chi Minh city. By the end of December 2, 1616, the total number of issued and verified invoices was 2,449,548 invoices, the total verified revenue was 18,934 billion VND and the total verified tax amount was 880.8 billion VND). The pilot use has reduced the time for tax administrative procedures and costs for enterprises and overcome the situation of fake invoices.
Expand scope of application
Besides positive results, there are many obstacles and shortcomings required for settlement. Thus, the Ministry of Finance is planning to amend the Decree on invoices with more specific regulations on electronic invoices
Firstly, the Ministry of Finance proposes to separate the paper invoices in the form of printed invoices on order or self-printed invoices and electronic invoices. Along with that, in order to meet the requirements of the Prime Minister’s Directive No. 26 / CT-TTg on implementing electronic invoices and documents in 2018, the Ministry plans to expand the scope of electronic invoice application of enterprise and the scope of application of electronic invoices with the tax code.
Specifically, for the electronic invoice of enterprise, the scope of application will be: enterprises which have applied will continue to apply the electronic invoices; Enterprises and business organizations are conducting electronic transactions in tax declaration with tax offices, or economic organizations conducts electronic transactions in banking activities; Enterprises and business organizations with tax codes, which are using paper invoices printed from computer systems before January 1, 2018, shall use electronic invoices of enterprise from January 1, 2018 in the sale of goods and services when meeting full above requirements; and Newly established enterprises and business organizations are eligible.
To use the electronic invoices of enterprise, an economic organization only needs to meet three requirements: having business establishments conducting electronic transactions in tax declaration with tax authorities or being economic organizations conducting electronic transactions in banking activities; Having an electronic signature in accordance with the law; Having software to sell goods and services connected with accounting software, ensuring data of electronic invoices for sales of goods and services to be automatically transferred to the software.
For electronic invoices with the tax code, the Ministry of Finance proposes to expand the scope of application including Enterprises and business organizations using electronic invoices before January 1, 2018; Enterprises and business organizations selling and buying invoices of tax offices before January 1, 2018; Business organizations with tax codes using paper invoices printed from computer systems before January 1, 2018 but not using electronic invoices of enterprise; Enterprises violating the management and use of invoices; Enterprises with high risks of compliance with tax law on using electronic invoices with tax code. Newly established enterprises not using electronic invoice of enterprise and not purchasing invoices printed by the tax offices shall use the electronic invoices with the tax code within 6 months; especially, small and medium enterprises and enterprises in difficulty not using electronic invoices of enterprise are supported by tax offices to use electronic invoices with tax code and business households in the roadmap of the Ministry of Finance are suitable with the scale, business lines, and geographical areas.
The Ministry of Finance is consulting widely the draft Decree to be submitted to the Government for consideration and promulgation by the end of 2017