Nghe An: Businesses still face difficulties when using electronic invoices
(Baonghean.vn)-Since 2020, the Government has issued Decree No. 123/2020/ND-CP on invoices and documents, according to which agencies and businesses will switch to electronic invoices instead of paper invoices. The implementation of the regulation still faces some difficulties and problems.
Breakthrough regulations on recording invoices and documents
According to Decree No. 123/ND-CP of the Government oninvoice and voucherand Circular No. 32/2011/TT-BTC dated March 14, 2011 of the Ministry of Finance thenElectronic invoice(Electronic invoice) is a collection of data messages about the sale of goods and provision of services created, established, sent, received, stored and managed by electronic means.
This invoice is initiated, created, and processed on the computer system of the organization that has been granted a tax code when selling goods and services and is stored on the computers of the parties according to regulations. Electronic invoices include export invoices, value-added invoices, sales invoices, other invoices (including: stamps, tickets, cards, insurance receipts)...; transportation receipts, bank service fee collection documents... The form and content of the invoice are created according to international regulations and practices. Electronic invoices ensure the principle of continuity and time sequence, each invoice number is guaranteed to be created and used only once.
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| Representatives of Nghe An Tax Department leaders had a dialogue with businesses in Vinh City about implementing electronic invoices according to Decree 123 in mid-2020. Photo: Nguyen Hai |
An invoice must meet the following conditions to be recognized as an electronic invoice. That is, an electronic invoice has full contents according toAccounting LawNo. 88/2015/QH13 such as name and reference number of accounting voucher; date, month, year of making accounting voucher; name, address of agency, organization, unit or individual making accounting voucher; name, address of agency, organization, unit or individual receiving accounting voucher; content of economic and financial transaction arising; quantity, unit price and amount of economic and financial transaction written in numbers; total amount of accounting voucher used to collect and pay money written in numbers and in words; signature, full name of the person making, approving and people related to accounting voucher.
Next, the above electronic invoice is presented in the form of electronic data, encrypted without being changed during transmission over computer networks, telecommunications networks or on information carriers such as magnetic tapes, magnetic disks, payment cards; at the same time, the security and integrity of data must be ensured.
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| People come to do tax administrative declaration procedures at Vinh City Tax Department. Photo courtesy of Nghe An Newspaper |
In addition, to be registered to issue electronic invoices, enterprises must be qualified economic organizations and are conducting electronic transactions in tax declarations with tax authorities; using electronic transactions in banking activities; and have qualified staff. At the same time, they must have the capacity to meet the requirements to initiate, create, and use electronic invoices according to regulations; and have a location and technical infrastructure to carry out the process of backing up, restoring, and storing data. To issue electronic invoices, enterprises must carry out 3 steps: have a decision to apply electronic invoices; notify the issuance of electronic invoices to the management agency and the General Department of Taxation's electronic information page according to the 3-party mechanism and digitally sign the sample invoice and send it to the tax management agency.
Advantages and disadvantages of applying electronic invoices?
After nearly 2 years of implementation, the reality at businesses has provenUsing electronic invoices helps businesses save time (reducing up to 70% of the issuance process steps and 90% of disputes related to invoices, shortening up to 99% of payment time, invoice management, saving 80% of costs for each invoice)... When using electronic invoices, businesses do not need to wait to receive invoices by post andworried about lost documentsLike before; with just the internet and one click, shoppers will receive their invoices no matter where they are.
THowever, through research and discussion at a number of businesses, we found that while commercial and service businesses have found it very convenient to apply electronic invoices, construction and transportation businesses also face some difficulties.
According to an accountant of a construction company on Pham Dinh Toai Street (Vinh City), the construction project is typically settled according to progress every month or quarter, or even at the end of the year. Regulations on electronic invoices, all changes must be invoiced and reported to the tax authority, which is difficult for businesses, especially construction projects in remote areas.
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| Representatives of the Taxpayer Support and Propaganda Department and Nghe An Tax Department answered questions at the online conference on the application of Resolution 406 of the National Assembly on tax exemption and reduction for businesses affected by the Covid-19 pandemic at the end of 2021. Photo: Nguyen Hai |
In addition, a difficulty is related to habits and awareness. Accordingly, the majority of Vietnamese people consider invoices to be synonymous with paper documents and electronic invoices are not yet widely known, so when issuing to customers, businesses often encounter many difficulties in explaining to customers what electronic invoices are and the legality of these invoices. In Nghe An, from July 1, 2022, 100% of businesses applying electronic invoices is a big challenge because up to 90% of businesses are small and medium-sized, so the conditions for infrastructure investment and human resources are not commensurate. Not to mention many businesses in mountainous areas, the provision of electronic invoice services still has some limitations and shortcomings...
For the above reasonsTherefore, during the implementation process from October 2020 to present, there have been many cases of incorrect recording of electronic invoices. Regarding this situation, the Tax Department has provided instructions on handling errors with electronic invoices as follows:In case the invoice has been issued and sent to the buyer but the goods have not been delivered, the services have not been provided or the seller and the buyer have not declared taxes, if an error is discovered, the buyer and the seller shall agree to delete the incorrect invoice. In case the invoice has been issued and sent to the buyer, the goods have been delivered, the services have been provided, the seller and the buyer have declared taxes, and then an error is discovered, the seller and the buyer must make a written agreement with the electronic signatures of both parties and clearly state the error.
From my practical experience in applying electronic invoices, I personally realized that at first, when recording electronic invoices, I was not familiar with them, so there were mistakes, but later, with experience, it will be easier to handle. That is, before finalizing the information content to send to the tax authority to get the signature and tax code, the accountants of the two parties buying and issuing the invoice can exchange the draft pdf soft copy to supplement and edit the information before officially finalizing it to issue and send it to the tax authority, which will reduce mistakes, forcing to correct or cancel the invoice...
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| Representatives of Nghe An Tax Department, business associations and VCCI Nghe An branch at the national online forum to discuss and resolve tax problems related to import, export and customs procedures. Photo: Nguyen Hai |
Finally, it is the initiative and readiness of businesses, because in the past, traditional invoices only required a code and did not require the signature of the tax authority, so tax revenue was different from actual revenue, leading to tax losses. Now, according to the new regulations, electronic invoices must have the digital signature of the tax authority, which is one of the three parties, to be valid and accepted. If fraudulent, there will be heavy fines, so small businesses are not really excited.
However, in the difficult context, to improve competitiveness, many businesses are calculating to cut input costs and reduce indirect machinery, using electronic invoices is an effective solution. Electronic invoices are also a channel to monitor and manage tax revenue at businesses, so they need to be guided to apply strictly and practically./.
