Question:
Currently, Decree 126, effective from December 15, 2020, applies to the fourth quarter of 2020. I have two issues that need assistance and clarification as follows:
1. According to Decree 126, the tax authorities require electronic invoice data to be submitted to the tax authorities using form 02. However, the current electronic tax portal does not support the submission of this form. Should we submit it directly on paper or in the attachment section of the VAT return?
2. According to this Decree, personal income tax (PIT) must be reported periodically regardless of whether the business has income to report or not. The tax declaration software supports quarterly reporting even when the business has no income. However, for the annual PIT settlement, the software does not allow for reporting for businesses that did not generate any income (no PIT deduction). Should we submit a paper document created in Word or Excel directly to the tax authority for the annual PIT settlement since the electronic tax portal does not accept returns in a format other than XML?
3. Currently, all documents from the tax authorities do not allow for the issuance of electronic invoices based on a summary. In practice, when we undertake construction or installation projects or make bulk sales, we sign economic contracts. Can we issue invoices based on these economic contracts? (For example, in construction, it is not possible to itemize all expenses such as materials and labor costs, and when installing a machinery system, it is also not possible to itemize all small materials).”
Answer:
For question 1:
According to Circular No. 68/2020/TT-BTC dated July 24, 2020, of the Ministry of Finance guiding Decree No. 126/2020/NĐ-CP on electronic invoices in Clause 2, Article 6, which stipulates that invoices in Form 02 are only used for electronic invoices under Article 9 of Decree No. 119/2018/NĐ-CP.
For businesses that do not meet the conditions for issuing electronic invoices under Decree No. 119/2018/NĐ-CP, they are not required to submit electronic invoices in Form 02. Therefore, you should follow the guidance provided by the tax authorities or use the VAT return attachment if available.
For question 2:
The issue raised is related to the functionality of the tax declaration software, which may not support certain cases, such as annual PIT settlement for businesses with no income. In such cases, you can consider preparing the PIT settlement manually in Word or Excel, as needed, and submit it directly to the tax authorities, as the electronic tax portal may not support these specific situations.
For question 3:
According to current regulations, you can issue electronic invoices based on economic contracts, as long as they meet the legal requirements and are in compliance with the relevant regulations regarding electronic invoices and summary invoices. However, you should ensure that the invoices accurately reflect the transactions and comply with the law.
