New contents of Circular No. 68/2019/TT-BTC

11/13/2019

On September 30th, 2019 Ministry of Finance has issued Circular No. 68/2019/TT-BTC taking effect from November 14th, 2019 as guidance on implementation of some article of Decree No. 119/2018/ND-CP on electronic invoices (“e-invoices”). Then on October 15th, 2019 General Department of Taxation has issued Official Letter No. 4178/TCT-CS as introduction of some article of Circular No. 68/TT-BTC as below:

 1. Contents of electronic invoices:

  • Beside the principal contents similar to paper invoices as guidance in Circular No. 39/2014/TT-BTC of the Ministry of Finance, there are some additional articles: the tax authority’s identification code on authenticated invoices; Fee and charge payable to the State budget, and other relevant contents (if any). Particularly, symbol and code of invoice shall be applied as guidance in Clause 1 Article 3 Circular No. 68/2019/TT-BTC.
  • Issuance date of e-invoices: the date on which the seller’s digital or electronic signature is added to the invoice in format of dd/mm/yyyy and followed with instructions in Article 4, Circular No.68/2019/TT-BTC.

 2. Some cases e-invoices are not required to fulfill adequate information:

  • Electronic invoice issued by a supermarket or shopping mall to a non-business buyer;
  • Electronic invoices for sale of oil and gas to non-business individuals;
  • Electronic invoices in the form of stamps, tickets or cards;
  • Electronic air ticket issued via websites and e-commerce systems to non-business individuals following international practice shall be consider as an electronic invoice;
  • Invoices for construction and installation; construction of houses for sale under instalment plans;
  • Electronic deliver note;
  • Invoices for interline payment between airliners issued in accordance with regulations of International Air Transport Association.

 3. Electronic invoice format

  • The electronic invoices shall be XML documents. General Department of Taxation shall create and announce the format of transaction information, digital signatures and tools for display of electronic invoices as prescribed.

 4. Application of electronic invoice

  • Regulated in Article 12 Decree No. 119/2018/ND-CP.
  • In case of unauthenticated invoices, the business lines shall be level-4 codes according to the List of fields and business lines in the Prime Minister’s Decision No. 27/2018/QD-TTg dated June 7th, 2018.

 5. Use of authenticated invoices in case of high tax risk

  • Enterprise whose equity is below VND 15 billion and has one of eight signals stipulated in Clause 3 Article 6 Circular No. 68/2019/TT-BTC shall use authenticated invoices for 12 consecutive months.

 6. Use of authenticated invoices when each time of incurring

  • Regulated in Clause 4, Article 6 Circular No. 68/2019/TT-BTC.
  • Organizations, enterprises, households and individuals eligible for provision of separate authenticated shall submit the application for provision of authenticated invoices to the tax authority and make completely declaration and payment for value added tax (“VAT”), personal income tax, corporate income tax, other taxes and fees (if any) before being granted authenticated invoices.

 7. Use of electronic invoice in case of goods and services exporting

  • Regulated in Clause 5, Article 6, Circular No. 68/2019/TT-BTC.
  • Exporting and export entrustment are required to use electronic VAT invoice or electronic sales invoice.

8. Suspension of use of authenticated and unauthenticated electronic invoices

  • Regulated in Article 9 and Article 15, Circular No. 68/2019/TT-BTC.
  • Enterprise, business organizations, other organizations, business households and individuals suspended to use invoice shall continuously use authenticated or unauthenticated invoices after notifying to tax authority about continuing operation, or restoration of tax code, or cancelation of decisions on enforcement of tax debts.
  • In case of suspension of business operation, the seller needs electronic invoices for customers to execute the contracts signed before the date of Tax authority’s operating suspension notification shall submit written notification to tax authority to continuously use separate authenticated invoices.

 9. Processing erroneous authenticated/ unauthenticated electronic invoices

  • Regulated in Article 11 and Article 17, Circular 68/2019/TT-BTC.

 10. Transmission of electronic invoice data to tax authorities

  • Regulated in Article 16, Circular 68/2019/TT-BTC

+ Data transmission method in form of Data electronic invoice summary (specified in Appendix 2 attracted Circular No. 68/2019/TT-BTC) shall be applied in service provision in the following fields: postal and telecommunications, insurance, finance and banking, air transport; Sale of electricity, clean water if customers’ codes or TINs are available; sale of goods/services to individual buyers whose name and address are not required on the invoices; sale of oil and gas to non-business individuals. Time of transmission and deadline for submission of VAT return are stipulated in Law on tax administration and implementing documents.

+ Adequate information transmission method is applied for another cases. Time of data transmission is when fulfilling sufficiently contents of invoice and invoice is simultaneously sent to customer and tax authority.

+ Form of data transmission: Directly or indirectly via provider of electronic invoice-related services.

 11. Handling problems when using authenticated invoices

  • Regulated in Article 12, Circular 68/2019/TT-BTC.

 12. Effect

  • During the period from the effective date of Circular No. 68/2019/TT-BTC to October 31st, 2020, the following documents are still effective:

+ Circular No. 32/2011/TT-BTC dated December 1st, 2010;

+ Circular No. 39/2014/TT-BTC dated March 31st, 2014;

+ Decision No. 1209/QD-BTC dated June 23rd, 2015;

+ Decision No. 2660/QD-BTC dated December 14th, 2016;

+ Circular No. 37/2017/TT-BTC dated April 27th, 2017.

  • From November 1st, 2020, the above circulars and decisions shall cease to have effect.
  • From November 1st, 2020, enterprises, business organizations, other organizations, business households and individuals shall apply for use of electronic invoices in accordance with Circular No. 68/2019/TT-BTC.