Legal News

[Taxation] Additional points regarding "time of creation of invoice for export goods" in the draft Decree amending and supplementing Decree No. 123/2020/ND-CP dated October 19, 2020 regarding invoices and vouchers

2023/10/05

The previous Decree 123/2020/ND-CP stipulates the timing of invoice creation for export goods as follows:
・There are no specific regulations regarding the timing of invoice creation for exported goods for EPE companies and companies applying the “direct method” for VAT declaration.
・It only stipulates the time when invoices are created for exported goods by companies that apply the “deduction method” for VAT declaration and tax payment. Specifically, the provision stipulates that “after completing procedures for exporting goods, companies must prepare a VAT invoice for the exported goods.” However, it is not clear how long companies need to issue invoices after completing export procedures.

The government has issued a draft Decree amending and supplementing Decree 123/2020/ND-CP dated October 19, 2020, which states that all enterprises (EPE enterprises, Non-Government Companies that declare and pay VAT using the “direct method”). The following two points of note have been corrected and supplemented regarding the time of invoice creation for export goods of EPE companies (non-EPE companies that declare and pay VAT using the “deduction method”).
・The invoice will be created within 24 hours after the customs authorities confirm the completion of customs procedures with the customs declaration form.
・After completing the procedures for exporting goods, the company creates an invoice for the exported goods.

As mentioned above, it is expected that the timing of invoice creation will become more clear in the future. However, as it is currently a draft, we will share new information on Law News as soon as it becomes available.

*When it is confirmed that the export declaration has been cleared through customs (customs procedures and tax obligations have been completed) and the product has passed through the supervised area of the customs system according to official letter 3446/TCHQ-GSQL dated July 3, 2023. The export procedure for the product is deemed to have been completed.

References:
-Draft Decree amending and supplementing Decree No. 123/2020/ND-CP of October 19, 2020 regarding invoices and documents
-Decree No. 123/2020/ND-CP dated October 19, 2020 issued by the Government regarding invoices and vouchers.
-Official letter 3446/TCHQ-GSQL dated July 3, 2023 issued by the General Directorate of Customs regarding the point of completion of export procedures
-Circular 39/2018/TT-BTC dated April 20, 2018 amending and supplementing Circular 38/2015/TT-BTC issued by the Ministry of Finance.

*This article was translated by Yarakuzen.