IN WHICH CASES DO BUSINESS INDIVIDUALS USING ELECTRONIC INVOICES WITH TAX CODES NOT HAVE TO PAY?

Do business individuals who declare taxes on a case-by-case basis have to issue electronic invoices? In which cases do business individuals who use electronic invoices with tax codes not have to pay according to the law? Through today’s article, let’s find out about this issue with Pham Consult!

Pursuant to Clause 2, Article 6 of Circular 78/2021/TT-BTC, the following provisions are made:

Applying electronic invoices to some other cases

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2. Business households and business individuals using electronic invoices include:

a) Business households and business individuals paying taxes by declaration method must use electronic invoices;

b) Business households and business individuals paying taxes by lump-sum method, if they request to use invoices, the tax authority shall issue individual electronic invoices for each occurrence;

c) Business households and business individuals declaring taxes for each occurrence, if they request to use invoices, the tax authority shall issue individual electronic invoices for each occurrence.

3. In the case of providing banking services, the invoice date shall be periodically implemented according to the contract between the two parties, accompanied by a list or other documents confirmed by both parties, but no later than the last day of the month in which the service provision occurs;

In the case of providing banking services in large quantities, arising frequently, requiring time to reconcile data between the bank and related third parties (payment organizations, international card organizations or other organizations), the time of invoice issuance is the time of completion of data reconciliation between the parties but no later than the 10th day of the month following the month of occurrence.

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Accordingly, business individuals who declare taxes on each occurrence and request to use invoices will be issued by the tax authority for each occurrence.

Electronic invoices are applicable to business individuals from July 1, 2022.

According to Clause 1, Article 14 of Decree 123/2020/ND-CP, the following provisions are made:

Providing electronic invoice services

1. In cases where electronic invoices with tax authority codes are used, service fees are not required for a period of 12 months from the date of starting to use electronic invoices, including:

a) Small and medium-sized enterprises, cooperatives, households and individuals doing business in areas with difficult socio-economic conditions or areas with particularly difficult socio-economic conditions. Areas with difficult socio-economic conditions or areas with particularly difficult socio-economic conditions shall be implemented according to the List of investment incentive areas issued together with Decree No. 118/2015/ND-CP dated November 12, 2015 of the Government detailing and guiding the implementation of a number of articles of the Investment Law and amendments, supplements or replacements, if any.

b) Other small and medium-sized enterprises as requested by the People’s Committees of provinces and centrally run cities to the Ministry of Finance, except for enterprises operating in economic zones, industrial parks, and high-tech zones.

The General Department of Taxation shall implement or authorize an organization providing electronic invoice services to provide electronic invoices with tax authority codes without having to pay service fees for the above subjects.

Accordingly, in cases of using electronic invoices with tax authority codes, business individuals shall not have to pay service fees within 12 months from the date of starting to use electronic invoices, including business individuals in areas with difficult socio-economic conditions, areas with especially difficult socio-economic conditions.

Areas with difficult socio-economic conditions, areas with especially difficult socio-economic conditions shall comply with the List of investment incentive areas issued together with Decree 118/2015/ND-CP.

According to Clause 1, Article 16 of Decree 123/2020/ND-CP, business individuals in the following cases must stop using electronic invoices with codes and electronic invoices without codes from the tax authority:

– Business individuals whose tax codes have expired.

– Business individuals whose tax authorities have verified and notified them of not operating at the registered business address.

– Business individuals who have notified competent state agencies of temporary suspension of business.

– Business individuals who have received a notice from the tax authority of stopping the use of electronic invoices to enforce tax debt collection.

– In cases where there is an act of using electronic invoices to sell smuggled goods, prohibited goods, counterfeit goods, goods that infringe intellectual property rights and are detected by competent authorities and notified to the tax authority;

– In case of the act of creating electronic invoices for the purpose of short selling goods or providing services to appropriate money from organizations or individuals, it is detected by the authorities and reported to the tax authority.

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