Thông tư 120/2002/TT-BTC hướng dẫn thi hành Nghị định 89/2002/NĐ-CP về việc in, phát hành, sử dụng, quản lý hoá đơn do Bộ Tài Chính ban hành

CIRCULAR 

GUIDING THE IMPLEMENTATION OF THE GOVERNMENT’S DECREE No. 89/2002/ND-CP OF NOVEMBER 7, 2002 ON THE PRINTING, ISSUANCE, USE AND MANAGEMENT OF INVOICES

Pursuant to the Government’s Decree No. 89/2002/ND-CP of November 7, 2002 on the printing, issuance, use and management of invoices, the Ministry of Finance hereby guides in detail the implementation thereof as follows:

A. GENERAL PROVISIONS 

I. SUBJECTS AND SCOPE OF APPLICATION

The subjects and scope of application of the printing, issuance, use and management of invoices include:

1. Organizations and individuals selling and/or exchanging goods and services.

2. Organizations and individuals buying and/or exchanging goods and services.

3. Organizations and individuals ordering the printing of invoices or undertaking the printing of invoices.

4. Organizations and individuals buying and selling unprocessed agricultural, forestry and/or aquatic products.

5. For organizations and individuals not engaged in business activities, when liquidating and/or selling properties belonging to the State budget or selling goods confiscated into State funds, they shall comply with separate regulations of the Ministry of Finance.

II. TYPES, FORMS AND CONTENTS OF INVOICES

1. Invoice types prescribed in this Circular include:

- The value-added invoice.

- The common sales invoice.

- The financial-leasing invoice.

- The purchase invoice.

- The retail invoice (used for cash registers).

- Other types of invoices, stamps, tickets, cards pre-printed with par-values, and delivery-cum-internal transport cards, cards for delivery of goods for sale agency consignment, receipts of flight service charges, bills of lading…

2. Forms of invoices:

The forms of invoices must be suitable to activities of goods production and business as well as service provision and presented in either of the followings:

- Invoices printed in set forms: invoices issued by the Ministry of Finance for sale to organizations and individuals for use; invoices printed by organizations and individuals themselves according to regulations.

- Assorted stamps, tickets and cards pre-printed with par values.

3. Legally valid invoices must fully contain the following details: Full names; addresses; tax code (if any), payment accounts (if any) of buyer and seller; name of goods or service, calculation unit, quantity, unit price and money amount of goods; tax rate, VAT amount (if any); total amount payable; signatures of the seller and buyer. Cases where buyers do not sign invoices are prescribed in Clause 1.11, Section VI, Part B of this Circular.

B. PROVISIONS ON THE PRINTING, ISSUANCE, USE AND MANAGEMENT OF INVOICES

I. RESPONSIBILITIES OF INVOICE-PRINTING ORGANIZATIONS AND INDIVIDUALS

1. The Ministry of Finance shall authorize the General Department of Tax to print and issue invoices for sale to invoice-using organizations and individuals according to the provisions of law, and permit organizations and individuals to print by themselves invoices for use, ensuring the management requirements.

Invoices printed and issued by the General Department of Tax shall be sold in order to offset the printing, issuance and management costs. The selling price of invoices shall be uniformly set by the General Department of Tax for nationwide application.

2. Organizations and individuals shall be permitted to print by themselves invoices which have been approved by competent tax offices. If they change invoice forms, they must make re-registration thereof.

Before printing invoices of a new batch, organizations and individuals must report on the use of invoices of the old batch and register the sign, quantity and serial numbers of invoices and invoice-printing place with the tax offices.

3. Invoices shall be printed and issued as follows:

- Value-added invoices, form 01GTKT (deducted added value).

- Common sales invoices, form 02GTTT (direct added value).

- Delivery-cum-internal transport cards, form 03PXK (Goods delivery cards).

- Cards for delivery of goods for sale agency consignment, form 04HDL (goods consigned to agents).

- Financial-leasing invoices, form 05TTC (Financial leasing).

- Invoices for purchase of agricultural, forestry and/or aquatic commodities, form 06TMH (commodity purchase).

- Retail invoices (used for cash registers), form 07MTT (Cash registers).

4. Invoices must have signs using 20 capitalized Vietnamese letters (A, B, C, D, E, G, H, K, L, M, N, P, Q, R, S, T, U, V, X, Y), each consisting of 2 letters and the invoice-printing year. Invoices issued by the Ministry of Finance shall have their signs added with letter B or N after the invoice-printing year. Self-printed invoices shall have their codes added with letter T after the invoice-printing year.

For example: AA/2002N, AB/2002B, AA/2002T; AA and AB are signs; 2002 is the invoice-printing year; N and B indicate invoices issued by the Ministry of Finance; T indicates self-printed invoices.

5. Invoices copies:

Each invoice must have at least 3 copies; for cases of using invoices with 2 copies, the approval of the tax office is required; each copy shall be used as follows: copy 1: For archival; copy 2: Handed to the customer; and copy 3: For internal use. For invoices of exported goods or services, their copies 3 shall be archived at the customs offices. For invoices in the forms of stamps, tickets or cards, an appropriate number of copies may be used provided that it is approved by the tax offices.

6. Serial numbers of invoices must be printed with the natural and consecutive number sequence, with each having no more than 7 numerals in one invoice sign.

7. Retail invoices used for cash registers:

Organizations and individuals using cash registers for retailing goods or services at shops, stalls or department stores must use retail invoices (used for cash registers). Retail invoices used for cash registers shall be issued by the Ministry of Finance or registered for self-printing by organizations or individuals with the Tax Departments of the provinces or centrally-run cities. The form of retail invoices printed from cash registers must have such details as: name, address and tax code of the selling unit, quantity, unit price, amount to be paid, VAT rate, and VAT amount. Such an invoice must have at least two copies: copy 1 for archival and copy 2 for handing to customer.

II. RESPONSIBILITIES OF ORGANIZATIONS AND INDIVIDUALS ORDERING THE PRINTING OF INVOICES ALREADY PERMITTED FOR SELF-PRINTING

1. Organizations and individuals that order the printing of assorted invoices already permitted for self-printing must base themselves on the invoice forms already approved and with the certification of the heads of the organizations or individuals thereon. Invoice-printing contracts must be signed with the printing organizations, clearly stating the quantity, sign and serial numbers of invoices to be printed on order. After each printing round or the termination of each printing contract, the contracts between the party ordering the printing and the printing party must be liquidated. It is strictly forbidden to order the printing of invoices outside the signed contracts.

2. Organizations and individuals ordering the printing of invoices may select appropriate and convenient printing houses on the list of printing houses already registered with the General Department of Tax.

III. RESPONSIBILITIES OF ORGANIZATIONS AND INDIVIDUALS UNDERTAKING THE PRINTING OF INVOICES ALREADY APPROVED BY THE TAX OFFICES

1. Invoice-printing organizations must fully meet such conditions as having the printing practice permits issued by the competent agencies, adequate equipment and capability for printing invoices as prescribed by law.

2. If wishing to add more printing houses to the list of those already designated by the General Department of Tax, the provincial/municipal Tax Departments must consider the actual capabilities of such printing houses, so as to guide them to send requesting official dispatches to the General Department of Tax for approval. The procedures for registration with the General Department of Tax for being designated to print invoices include:

- The official request, committing to organize the invoice printing.

- A description of the existing printing equipment and capability.

- The tax registration certificate (a copy)

- The printing business registration certificate (a copy).

When printing invoices, the printing organizations must base themselves on the invoice forms already approved in writing by the Ministry of Finance (the General Department of Tax) to compare them with the invoice forms to be printed on order, which have been already approved by competent authorities. they must print invoices according to the contracts signed with the printing- ordering party, which clearly state the invoice quantity, sign and serial numbers. After finishing the printing of invoices, they must liquidate the contracts, destroy printing plates, zincographs as well as excessively or erroneously printed products. Where invoices are printed in small quantities and their printing plates or zincographs need to be retained for subsequent printing, they must be sealed up and kept at the printing houses.

3. To open books to keep track of the situation of invoice-printing orders, make and send quarterly reports to the tax offices on the quantities of printed invoices of each organization or individual ordering the invoice printing.

IV. ISSUANCE OF INVOICES

1. For invoices issued by the Ministry of Finance (the General Department of Tax).

1.1. When invoices are put into use, written announcements thereon must be sent to the provincial/municipal Tax Departments, describing the invoice types, the technical design characteristics of the invoice forms and the valid duration of their circulation.

1.2. Invoices shall be sold to organizations and individuals that cannot print invoices by themselves for use. When selling invoices, the tax offices must guide and inspect the organizations and individuals to write or stamp their names, addresses and tax codes on copy 2 of each invoice before they can take them out of the tax offices where invoices are purchased. The sale of loose invoices shall comply with the provisions at Point 1, Clause 1.8, Section VI, Part B of this Circular.

2. For self-printed invoices:

Five days after making registration for the circulation of the forms of self-printed invoices, organizations and individuals must send written notices on such circulation (enclosed with the invoice forms) to the managing tax offices and post up them at their head offices, sale and transaction places. Such a notice must clearly describe the invoice set form, type, presentation, size, pattern, logo, design features of the invoice form and the valid duration of circulation.

When changing the invoice set forms, organizations and individuals must announce publicly the invoice type, sign, serial numbers and the expiry time of their use to the managing tax offices and post up such notices and the forms of expired invoices at their head offices, sale and transaction places, effect the payment, settlement and return the unused quantities of invoices to the managing tax offices.

V. PROCEDURES FOR PURCHASING INVOICES, REGISTERING THE USE OF SELF-PRINTED INVOICES

1. Procedures for purchasing invoices

1.1. Organizations and individuals must fully carry out the following procedures for the first-time purchase of invoices:

a/ The paper of introduction together with the official dispatch applying for purchase of invoices, signed by the head of the organization, or the application for purchase of invoices, made by the head of the production and/or business household (made according to set forms).

b/ Production by the person directly purchasing invoices of his/her identity card (still in the law-prescribed use duration).

c/ The business registration certificate together with a copy thereof.

d/ The tax registration certificate together with a copy thereof.

e/ The chart of production and business locations, transaction offices, drawn by the organization or individual, with the certification and commitments by the head of the organization or the individual, including the addresses, house numbers and streets (for cities and provincial capitals) and villages, communes… (for the countryside), which shall serve as a basis for transaction monitoring and management. Within 10 days after changing their production and/or business locations- or transaction offices, organizations and individuals must send new location charts to the tax offices. If organizations or individuals rent production and/or business locations or transaction offices, they must produce the house-renting contracts, with the certification of the People’s Committees of communes, wards or township for comparison.

Within five working days after receiving the dossiers of application for first-time purchase of invoices from organizations or individuals, the tax offices shall have to check the existence of such organizations or individuals in order to effect the sale of invoices according to regulations; the quantity of invoices sold for the first time must not exceed two books. The to be-checked contents shall be a number of personal details of the heads of the business and/or production organizations or individuals declared in their official dispatches or applications for the purchase of invoices at Item a, and the contents at Item e of this Clause.

The directors of the Tax Departments, the heads of the Tax Sub-Departments, and the leaders of the local tax teams must direct tax officers in the localities to check and reply on the contents as requested by tax offices in other localities within three days in order to ensure the accurate and timely invoice sale.

The managing tax offices shall open books to monitor invoice-purchasing organizations and individuals and grant to each unit one book ST-22/HD.

1.2. Procedures for subsequent purchases of invoices:

a/ The paper of introduction together with the official dispatch applying for the purchase of invoices, signed by the head of the organization, or the application for the purchase of invoices, made by the head of the production and/or business household (made according to set forms).

b/ The production by the person directly purchasing invoice of his/her identity card (still in the law-prescribed use duration).

c/ The invoice-purchase book granted by the tax office.

d/ The list of invoices of sold goods or services, made according to form No. 02/GTGT (applicable also to organizations and individuals calculating tax according to the direct method), with the managing tax office’s certification that tax declaration has been made. Where the time of purchasing invoices does not coincide with the time of tax declaration, organizations and individuals shall declare by themselves the quantities of invoices already used according to form No. 02/GTGT and be responsible for their declared contents. Basing themselves on the lists, quantities of used invoices, and tax declarations, the tax offices shall determine appropriate quantities of invoices to be subsequently sold to organizations and individuals.

The heads of production and/or business households must directly buy invoices for the first and subsequent times. Where they cannot directly purchase invoices, the written authorizations with the certification of the administration of the localities where the heads of the households do business shall be required.

2. Procedures for making registration of the use of self-printed invoices

2.1. Procedures for making registration of forms of self-printed invoices

For corporations, business groups and unions having many companies, enterprises, units and/or branches, based in many provinces and/or centrally-run cities, they shall make registration for the use of self-printed invoices with the General Department of Tax; other organizations and individuals shall make registration at the provincial/municipal Tax Departments.

Organizations and individuals engaged in the goods production and trading and/or the service provision shall make registration of the use of self-printed invoices according to the following provisions:

a/ The official dispatch applying for registration of the use of self-printed invoices (for production and/or business organizations) or the application for registration of the use of self-printed invoices (for production and/or business households), made according to set forms.

b/ The invoice forms shall be designed by organizations and individuals themselves. An invoice form must include such details as name of the organization or individual, address, tax code, sign, serial number of the invoice; name, address and tax code of the goods purchaser, name of goods or service, calculation unit, quantity, unit price and the amount paid for the goods, VAT rate, VAT amount (if any), total sum payable, printed according to document No.: and dated…. of the tax office and the name of the invoice-printing house. The typical contents or logos of the units may be inserted into the invoice forms. If organizations or individuals wish to use bilingual invoices, the details shall be printed in Vietnamese first, then in the foreign language.

c/ The chart of production and business locations, transaction offices, drawn by the organization or individual, with the certification and commitment by the head of the organization or the individual, including the addresses, house numbers and streets (for cities and provincial capitals) and villages, communes… (for the countryside), which shall serve as a basis for monitoring transactions and management Within 10 days after changing their production and/or business locations or transaction offices, organizations and individuals must draw up new charts thereof. If organizations or individuals rent production and/or business locations or transaction offices, they must produce the house-renting contracts, with the certification of the People’s Committees of communes, wards or township (for comparison) together with a copy thereof for archival by the tax offices.

d/ Non-notarized copies:

- The business registration certificate.

- The identity card (still in the law-prescribed use duration) of the head of the production and/or business organization or individual.

e/ The original tax registration certificate, together with a copy.

Within five working days after receiving the dossiers of application for registration of the use of self-printed invoices from organizations or individuals, the tax offices shall have to check the existence of organizations or individuals having registered for self-printing of invoices in order to carry out the procedures for approving the registration of self-printed invoice forms.

When changing their invoice forms, organizations and individuals must make re-registration therefor.

2.2. Making registration for circulation of self-printed invoice forms

Organizations and individuals using self-printed invoices must make registration for circulation of their invoice forms with the tax offices where they have registered for the use of invoices, regarding the sign, quantity and serial numbers of invoices (from serial number … to serial number…). The tax offices shall base themselves on the organizations’ or individuals’ demands for invoices and their observance of the regulations on management and use of invoices to prescribe the quantities of self-printed invoices registered for circulation and use in each period of from one to three months. Before printing invoices of a new batch, organizations and individuals must report on the use of invoices printed in the previous batches to, and make registration for the new printing with, the tax offices regarding the sign, quantity and serial numbers of invoices.

The managing tax offices shall open books to monitor organizations and individuals that have made registration for circulation of forms of self-printed invoices and grant each unit one book ST-25/HD.

VI. USE OF INVOICES

1. For invoice-using organizations and individuals

1.1. When selling or exchanging goods and/or services, organizations and individuals must make out invoices according to regulations and hand them to customers.

1.2. Time of making out invoices: Invoices must be made out immediately when goods or services are delivered and other receivable amounts arise according to regulations. When making out invoices, the sellers must fully fill in the contents and details pre-printed in the invoice forms, and cross from left to right blank sections (if any). Invoices can be handwritten or typewritten with their copies having the same contents. Where invoices are erroneously inscribed and need to be destroyed, they should be crossed but not torn off from invoice books and all copies thereof must be archived.

Where invoice forms have a section for the unit head’s signature for approval, the unit heads may not necessarily sign for approval but can authorize the sellers to sign and inscribe their full names on invoices and hand them to customers. The authorization of the signing for approval of sales invoices must be decided in writing by the unit heads and copies 2 of these invoices must be affixed with the units’ or individuals’ seals on the upper left corner.

1.3. Invoices must be used according to their serial numbers, from small to big ones, without skipping any number.

1.4. Invoices shall not be required to be made out in the following cases of goods sale and service provision:

a/ Cases of retail of goods or provision of services to consumers, with the value being under VND 100,000 per payment, where buyers do not ask for the making out and handing of invoices. If buyers ask for invoices, the sellers must make out and hand invoices according to regulations. Though retail invoices for values lower than the prescribed level are not required to be handed to consumers, the lists of retailed goods or services must be drawn up according to regulations.

b/ For production and/or business organizations and individuals that make tax payment declaration, units enjoying State budget funding, units implementing projects, involving other expenditures which need to be accounted, when they buy goods valued at below the prescribed level for which invoices are not compulsory, they must still ask the sellers to make out and hand invoices to them according to regulations, which shall serve as a basis for tax declaration and for payment as prescribed.

1.5. When invoice-using organizations and individuals are merged, consolidated, dissolved, transform their ownership form, go bankrupt or cease operation, they must report on the payment and settlement of the use of invoices and return all unused invoices to the tax offices that have supplied invoices or effected the registration of the use of invoices within five working days as from the date of issuance of the decisions on their merger, consolidation, dissolution, ownership transformation, bankruptcy or operation cessation.

1.6. Invoice users:

a/ For value-added invoices, they include:

- Production and/or business organizations and individuals applying the deduction method for VAT calculation.

- Organizations and individuals acting as agents selling VAT-liable goods at right prices and applying the deduction method for VAT calculation.

b/ For common sales invoices, they include:

- Production and/or business organizations and individuals applying the direct method for VAT calculation.

- Organizations and individuals acting as agents selling special consumption tax-liable goods at right prices.

- Organizations and individuals acting as agents selling VAT-liable goods at right prices and applying the direct method for VAT calculation.

- Production and/or business households applying the method of direct payment of tax amounts kept stable for six months or the whole year and engaged in business activities not regularly requiring loose invoices made out by the tax offices. The making out of loose invoices is prescribed in Clause 1.8 of this Section.

c/ Organizations and individuals purchasing unprocessed agricultural, forestry and/or aquatic products may use invoices for purchase of unprocessed agricultural, forestry and/or aquatic products.

1.7. Invoices which can be used for VAT deduction, refunding and calculation of reasonable expenses as well as payments, must be:

a/ Goods or service purchase invoices

- Goods or service purchase invoices: originals, copies 2 (copies handed to customers).

- Invoices must be fully filled in according to regulations and remain untorn.

- Hand-written, typewritten or printed figures and words in invoices must be clear, full and accurate according to regulations, not be erased, deleted nor modified.

b/ Other cases:

- If goods-purchasing organizations or individuals lost original purchase invoices (copies 2) due to objective circumstances such as natural calamities, fires, or theft, they must declare and make reports on the quantities of lost invoices and the reasons for such loss, with the certification by the tax offices in case of natural calamities or fires, or with the certification by the local police in case of theft. Dossiers related to the invoice loss consist of:

+ The organization’s official dispatch or individual’s report on the loss of invoices.

+ The record on the loss of purchase invoices.

+ The copies (copies 1) of purchase invoices, with the certification, signature and stamp (if any) of the selling party.

When receiving the dossiers on loss of purchase invoices, the tax offices must notify the serial numbers of purchase invoices which are no longer valid and impose administrative sanctions on organizations or individuals that have lost invoices.

- Organizations and individuals purchasing assets subject to use registration (automobiles, motorcycles…) and having copies 2 of invoices kept by the asset-managing agencies (police) can use the following vouchers instead of purchase invoices: Cash receipts (copies 2, original) - Form CTT 41, receipts of registration fee (copies 2), invoices (copies 2) related to the registered assets.

1.8. Regarding the issuance of loose invoices:

For all cases of issuing loose invoices (without collecting money) under the provisions in Clause 1.2, Section IV, Part B of this Circular, to invoice-using organizations and individuals, including cases of goods sale by production and/or business households which pay fixed tax amounts and need to use invoices, the applications for use of loose invoices must be made. Loosely issued invoices are common sales invoices. On the basis of the applications of organizations and individuals, the tax agencies shall have to check the actual volumes of goods and services so as to issue invoices and collect VAT or enterprise income tax according to the fixed amounts inscribed on each invoice. Invoices shall be made out at the tax offices, with copies 1 and 2 to be handed to the persons who are issued invoices and copies 3 to be archived at the tax offices. Loosely issued invoices must be affixed with the stamps of the tax offices, where invoices are made out, on the upper left corner of each invoice copy. The tax offices must open books to separately monitor loose invoice-using organizations and individuals like other invoice-using organizations and individuals.

1.9. For asset-auctioning activities: The Councils in charge of enterprise dissolution or bankruptcy and the judgment-executing agencies may use invoices for sale of assets or goods. On the basis of their written requests, the tax offices shall sell invoices to the asset- or goods-selling organizations for use. The used invoices shall be affixed with the stamps of the goods-selling organizations on the upper left corner and shall be paid and settled with the tax offices which have sold invoices according to regulations.

1.10. Cases of re-making out invoices:

For cases of goods purchase or sale where the sellers have issued invoices and the purchasers have received the goods but then returned the whole or part of such goods due to their wrong specifications or inferior quality, the goods-purchasing organizations or individuals must make out invoices strictly according to regulations, clearly stating that the goods are returned to the sellers, the sum paid for the goods, VAT amount, enclosed with the storage or delivery cards (if any) for use as a basis for the sellers and purchasers to adjust the amounts and VAT paid for the goods when making tax declaration.

For cases where invoices have been torn off from invoice books but later detected containing errors and need to be destroyed, organizations and individuals must make reports thereon, signed by the goods purchasers and sellers for certification; if they are organizations, the signatures (and stamps) for certification of their heads shall be required; the purchasers and sellers must be accountable before law for the quantities of destroyed invoices.

1.11. Organizations and individuals purchasing goods and services:

When purchasing or exchanging goods or services, organizations and individuals shall have the right as well as the duty to request the sellers to make out invoices and hand copies 2 thereof to them for use according to their actual needs.

When production and/or business organizations and individuals that make declaration for tax payment, units enjoying State budget funding and project-implementing units purchase goods (including goods with the value being below the prescribed level without requiring invoices), they must receive invoices and check their contents, sign and inscribe clearly the purchasers’ full names thereon, or refuse to receive invoices inscribed with wrong details, or with values different from the actually-paid amounts.

Particularly for indirect purchase of goods such as purchasing goods via telephone or fax, the purchasers shall not have to sign the invoices but such invoices must be clearly inscribed that goods are purchased via telephone, fax….

For consumers having purchase invoices, including invoices for purchase of agricultural, forestry and/or aquatic products, they must retain such invoices so as to enjoy such prescribed benefits as product warranty, certification of lawful properties, registration of property ownership, participation in prize drawing, declaration of expenses when calculating tax…

2. The use of invoices for purchase of agricultural, forestry and/or aquatic products shall comply with the provisions in Article 10 of Decree No. 89/2002/ND-CP.

VII. MANAGEMENT OF INVOICES

1. For tax offices

1.1. The tax offices of all levels must effect the uniform management and use of invoices, open books to keep track of the receipt, delivery and sale of invoices, the registration of the use of invoices, monitor reports on the use of invoices, payment and settlement of the use of invoices according to the following regulations:

- Opening books to keep track of the receipt and delivery of invoices at the tax offices.

- Monitoring organizations and individuals that have made registration for the use of self-printed invoices according to form ST-25/HD and form ST-27/HD.

- Making reports, synthesizing quarterly reports for sending to the superior tax offices according to forms BC-27/HD, BC-20/HD, and BC-24/HD.

- Opening books to monitor invoice-purchasing organizations and individuals.

- Opening books to monitor the loss of invoices and the handling thereof.

- Opening books to monitor the verification of invoices.

- Opening books to monitor the use of fake invoices and wrong invoices.

- Opening books to monitor invoices of fled enterprises.

1.2. Invoices must be kept safely in preservation stores under the care of storekeepers; books must be opened to manage and monitor invoices according to regulations; invoices must be preserved and managed from damage or loss.

1.3. Notification must be made on loss of invoices and refusal to sell invoices, suspension of the use of invoices, withdrawal of invoices from organizations and individuals that no longer use invoices due to merger, dissolution, operation cessation, change of invoice forms, invoices already notified to be lost but later found, invoices with identical signs or serial numbers, useless torn invoices. When withdrawing invoices, detailed lists showing the sign, form, quantity and serial numbers of invoices of each organization or individual must be drawn up

1.4. Invalid invoices must be destroyed (including invoices lost then recovered). Lists of destroyed invoices must be drawn up and approved in writing by the General Department of Tax. Councils for destruction of invalid invoices must be set up, each consisting of a representative of the provincial/municipal Finance Service, a leader of the Tax Department, representatives of the Section of Inspection and Handling of Tax-Related Cases, the Section of Management of Print Forms, the General Planning Section, printed form accountant and print form storekeeper.

1.5. The invoice-managing agencies must work out regular concrete plans on supervising the situation of the use and management of invoices of organizations and individuals that print, order the printing of, issue and use invoices, and handle violations (if any).

1.6. Organizing the verification of invoices

The invoice-managing agencies at all levels shall have to organize the verification of invoices. The verification of invoices of agencies, branches, mass organizations and tax offices at all levels must be based on written requests for verification, enclosed with invoice copies. Replies on verification results must be issued in writing within 15 days after the requests for verification are received. Organizations or individuals requested to verify shall have to notify the verification results to the verification-requesting agencies and be accountable therefor.

1.7. Monitoring and handling of the loss of invoices

Upon receiving reports of organizations or individuals on the loss of invoices, the tax offices must send notices thereon according to form BC-23/HD to the General Department of Tax, the provincial/municipal Tax Departments and update them onto the national computer network so as to search for lost invoices.

The tax offices at all levels must make reports of the loss of invoices and impose sanctions thereon within 10 working days after issuing the notices on the loss of invoices. Sanctioning decisions must be issued according to the competence of the directors of the Tax Departments, the directors of the Tax Sub-Departments and sent to the superior tax offices (for cases handled by the Tax Sub-Departments, they must be reported to the General Department of Tax and Tax Departments). Monthly, the Tax Sub-Departments must sum up and report to the Tax Departments on the handling of the loss of invoices on the 10th day of the subsequent month. Quarterly, the Tax Departments must sum up and report on the general situation of the loss of invoices to the General Department of Tax on the 15th of the first month of the subsequent quarter.

1.8. Management of organizations and individuals using self-printed invoices

The tax offices at all levels must monitor and manage organizations and individuals using self-printed invoices:

a/ Archiving dossiers: Dossiers of organizations and individuals having registered for self-printing of invoices must be archived separately for each unit, consisting of the tax office’s written approval of the registration of the use of invoices, the approved invoice forms and invoice forms already registered for use (copies of invoice forms). The opening of books for monitoring, management and reporting must be computerized.

b/ The approval of the use of self-printed invoices shall be invalidated when detecting that organizations and individuals have put invoices into use but failed to announce the issuance of invoice forms, to make registration for the circulation and use of invoices, and printed invoices with identical serial numbers or signs.

1.9. Managing the printing of invoices

The tax offices shall monitor and manage the printing houses that print invoices for organizations and individuals, work out plans on inspecting, detecting and stopping acts of violation in ordering and/or undertaking the printing of invoices.

2. For invoice-using organizations and individuals.

2.1. Organizations and individuals engaged in production and business activities and/or the provision of services must use invoices strictly according to regulations. They are strictly forbidden to purchase, sell, give invoices to, or use invoices of, other organizations or individuals. They must not make out false invoices for VAT deduction or refunding declaration, reasonable expenses, cash payment, financial payment and settlement nor use invoices for other purposes. If these acts are committed in units, the heads of such units must bear joint responsibility for the unlawful invoices already signed for approval.

2.2. To open monitoring books, adopt management regulations and procure facilities to preserve and store invoices according to law provisions, specifically as follows:

a/ Monthly, to report on the situation of the use of invoices according to form BC-26/HD no later than the 10th of the subsequent month. Particularly for a number of specific sectors, reports on the use of invoices can be made on a quarterly basis given it is so approved by the General Department of Tax.

b/ To make annual reports on the payment and settlement of the use of invoices and send them to the direct managing tax offices before the 25th of February of the subsequent year.

2.3. Organizations and individuals that lose invoices must immediately report thereon in writing to the tax offices that have supplied or registered the use of invoice forms according to form BC-21/HD. Where invoices have been notified to be lost but then found, organizations and individuals must return them to the tax offices where they have purchased, or registered for the use of, invoices.

2.4. Unused or used invoices must be preserved and stored according to the tax and accounting and statistics legislation. Invoices must be safely preserved against damage or loss. For all cases of loss of invoices, organizations and individuals shall have to immediately report them to the direct managing tax offices for taking handling measures as prescribed. Invoice-using organizations and individuals must produce invoices being unused, in use and used to the tax offices and competent State bodies upon inspection.

2.5. Invoice-using organizations must regularly inspect individuals assigned to make out invoices when selling the units’ goods so as to monitor, redress and prevent in time any acts of violating regulations on the use of invoices; individuals committing violations regarding the use of invoices must be transferred to other jobs. The heads of organizations shall be accountable before law for the quantities of invoices already purchased, registered for use, used, declared for taxation, paid and settled.

C. HANDLING OF ADMINISTRATIVE VIOLATIONS

1. For the cases of violation of the provisions in Articles 12, 13, 14, 15 and 16 of the Government’s Decree No. 89/2002/ND-CP of November 7, 2002, the tax offices and the specialized financial inspection agencies must make reports on administrative violations according to regulations and handle them according to their competence defined in Articles 36 and 38 of Ordinance No. 44/2002/PL-UBTVQH10 of July 2, 2002 on Sanctioning Administrative Violations.

2. Measures to overcome tax-related consequences

Organizations and individuals committing acts of violating the provisions in Articles 12, 13, 14, 15 and 16 of the Government’s Decree No. 89/2002/ND-CP of November 7, 2002 and causing loss of tax revenues to the State budget shall, apart from being administratively sanctioned under the provisions of the above articles, be also subject to:

2.1. Full payment of evaded tax amounts.

2.2. Tax-related fines under the provisions of tax laws. If committing serious violations, they shall be examined for penal liability according to law provisions.

3. Other consequence-overcoming measures.

3.1. For organizations and individuals committing acts of violating the provisions at Points 1 and 2 above, the invoices involved in such violations must not be declared for calculation of VAT deduction or VAT refunding nor be accounted into reasonable expenses. Where payment has been made, such organizations or individuals shall be forced to repay the whole amounts already paid, deducted, refunded and/or accounted into expenses; for units enjoying State budget funding, they must not have such invoices settled as budget expenditures; for project-implementing units, they must not have such invoices paid or settled as expenditures; for investors, they must not account such invoices into the settled value of completed capital construction works.

For cases where quantitative or value disparities are detected in copies of the same invoices, administrative sanctions shall be imposed according to regulations and tax on such disparities shall be retrospectively collected before the invoices can be re-made, enclosed with written records on administrative sanctions.

For organizations and individuals that have purchased invoices but used them illegally (they fled away), such invoices shall not be accepted for declaration to calculate deductible or refundable VAT amounts nor accounted into reasonable expenses.

3.2. Cases of refusal to sell invoices and suspension of the use of invoices

a/ The tax offices at all levels may refuse to sell invoices to organizations or individuals in the following cases:

- Procedures prescribed in Section V, Part B of this Circular are not fully carried out.

- Tax declaration has not yet been made or tax declaration has been made but taxable turnover is not available one month after invoices are purchased.

- The use of invoices is not reported according to regulations.

b/ The tax offices at all levels may temporarily suspend the use of invoices by organizations and individuals that commit violations:

- Promptly suspend the use of invoices by organizations and individuals that sold and/or made out blank invoices.

- Organizations and individuals that continue committing the following violations though they have been handled by the tax offices for the same violations:

+ Erasure of invoices, inscription of copies of same invoices with different quantities and values of goods or services.

+ Business establishments’ failure to promptly report to the tax offices on loss of invoices according to current regulations.

+ Failure to abide by the competent authorities’ decisions to sanction administrative violations related to invoices or tax.

Once organizations and individuals have remedied the above-said violations, they shall continue to be considered by the tax offices for sale of invoices; the time limit for suspension of the use of invoices shall not exceed three months (90 days) after the decisions to suspend the use of invoices are issued. If violations are remedied within less than three months, the tax offices shall make written records to terminate the effect of the suspension of the use of invoices. Past the three-month time limit, if the violations are not remedied, the tax offices may propose the business license-granting agencies to withdraw the business registration certificate of the violators.

3.3. The tax offices may recover: invoices with expired use duration, invoices the forms of which have been changed, invoices already announced as lost then found, invoices with identical sign or serial numbers; torn invoices, invoices used at variance with regulations; amounts earned from the sale of invoice contrary to the provisions of this Circular.

4. Principles and procedures for handling violations, extenuating and aggravating circumstances, forced implementation and statute of limitations for implementation of sanctioning decisions.

The principles for handling violations, sanctioning procedures, extenuating and aggravating circum-stances for violations and the statute of limitations for sanctioning shall comply with the provisions of the Ordinance on Sanctioning Administrative Violations.

Organizations and individuals that are sanctioned for violations related to the printing, issuance, use and/or management of invoices must implement the sanctioning decisions within 10 days after the competent authorities issue such decisions; where they deliberately refuse to implement the sanctioning decisions, they shall be forced to implement them according to law provisions.

5. Competence to handle violations

The tax offices and the specialized financial inspection agencies shall have competence to handle violations related to the printing, issuance, use and/or management of invoices; the competence to handle violations related to the printing, issuance, use and/or management of invoices shall comply with the provisions in Articles 36 and 38 of the Ordinance on Sanctioning Administrative Violations.

6. Defining the competence to handle administrative violations in the domain of printing, issuance, use and/or management of invoices

6.1. The principles for defining the competence to handle administrative violations in the domain of printing, issuance, use and/or management of invoices in this Circular shall comply with the provisions in Article 42 of the Ordinance on Sanctioning Administrative Violations.

In the course of supervision and inspection, if the specialized financial inspection agencies detect that organizations or individuals have committed violations related to the printing, issuance, use and/or management of invoices, resulting in false tax declaration and/or tax evasion, they shall mete out administrative sanctions thereon and must transfer the dossiers thereon to the tax offices for handling corresponding to the level of penalty on false tax declaration and/or tax evasion.

6.2. For violations related to the printing, issuance, use and/or management of invoices, resulting in tax false declaration or tax evasion, which are by law serious enough to be examined for penal liability, the specialized supervision and inspection agencies must compile dossiers thereon and transfer them to the competent bodies for penal liability examination.

6.3. The agencies conducting legal proceedings shall have to notify the results of handling violations related to the printing, issuance, use and/or management of invoices to the agencies which have proposed the penal liability examination.

D. COMPLAINTS, DENUNCIATIONS AND COMMENDATION

Complaints and settlement of complaints and denunciations regarding violations related to the printing, issuance, use and/or management of invoices under the provisions of this Circular shall comply with the law provisions on complaints and denunciations.

Organizations and individuals that record merits in the detection, denunciation, supervision and handling of violations related to the printing, issuance, use and/or management of invoices shall be commended and/or rewarded according to the Government’s stipulations.

E. IMPLEMENTATION PROVISIONS

This Circular takes implementation effect from the date of its signing and replaces the Regime on issuance, management and use of sales invoices, issued together with Finance Minister’s Decision No. 885/1998/QD-BTC of July 16, 1998, Decision No. 31/2001/QD-BTC of April 13, 2001 and Decision No. 110/2002/QD-BTC of September 18, 2002 amending and supplementing the Regime on issuance, management and use of sales invoices and other regulations on the printing, issuance, management and use of invoices, which are contrary to the provisions of this Circular.

Organizations and individuals are requested to report on any problems arising in the course of implementation to the Ministry of Finance for timely settlement.