Cancellation of an e-invoice: What is the procedure?

1. What is the cancellation of an e-invoice and the destruction of an e-invoice?

It is necessary to know the definition of the cancellation of an e-invoice and the destruction of an e-invoice before making the procedure.

* What is the cancellation of an e-invoice?

The cancellation of an e-invoice is prescribed in Clause 10, Article 3, Decree No. 123/2020/ND-CP as follows:

“10. Cancellation of an invoice or document means an act of invalidating an invoice or document.”

* What is the destruction of an e-invoice?

Clause 11, Article 3, the Decree No. 123/2020/ND-CP explains the destruction of an e-invoice

“11. Destruction of an invoice or document:

a) Destruction of an invoice or document means a method of making an e-invoice or e-document no longer existing on the information system, and making information contained in such e-invoice or e-document inaccessible and irreferable.

b) Destruction of an invoice printed on order by a tax agency, destruction of an invoice or document which is printed on order or self-printed means the use of methods of burning, cutting, shredding or other forms of destruction, ensuring that the information and data recorded in the invoice or document with destroyed number could not be re-used.

From above definitions, it can be seen that cancellation of an e-invoice and destruction of an e-invoice are different.

- The e-invoice still “exists” but is invalid (is applicable in the cancellation of an e-invoice containing errors in accordance with law provisions).

- The e-invoice does not exist in the system for e-invoices or does not exist in reality for paper invoices. 



2. When are e-invoices canceled/destructed?

* When are e-invoices canceled?

Pursuant to Clause 1, Article 19, Decree No. 123/2020/ND-CP, the seller shall notify the cancellation of an e-invoice in case the seller discovers that an e-invoice is granted with the tax agency’s code that has not been sent to the buyer contains errors.

Besides, Clause 1, Article 7 of the Circular No. 78/2021/TT-BTC also prescribes the processing of error-containing e-invoices and tables summarizing e-invoice data that have been sent to tax offices in some cases

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b) In case the seller issues an invoice upon charge collection before or while providing services under Clause 2, Article 9 of Decree No. 123/2020/ND-CP, then it/he/she cancels or terminates service provision, the seller shall cancel the issued e-invoice and send to the tax office a notice of such cancellation, made according to Form No. 04/SS-HDDT provided in Appendix IA to Decree No. 123/2020/ND-CP;

Therefore, error-containing e-invoices shall be canceled in some cases (normally adjustment in invoices).

* When are e-invoices destructed?

Article 27, Decree No. 123/2020/ND-CP on the destruction of invoices printed on order by tax agencies in the cases as follows:

(1) Invoices no longer in use by enterprises, economic organizations, business households, and individuals must be destroyed.

The time limit for the destruction of invoices is at least 30 days, after notifying the tax agency.

(2) Enterprises, economic organizations, business households and individuals that keep invoices with expired validity as notified by the tax agency (except for the notice due to the enforcement of tax debt coercive measure) shall destroy these invoices.

The time of destruction is within 10 days after the tax agency notify their expired validity or after finding lost invoices;

Note:

- Invoices created by accounting units shall be destroyed in accordance with the accounting law.

- Invoices that are not yet created but serve as material evidence of legal cases may not be destroyed but shall be handled in accordance with law provisions.



3. Procedure for the cancellation of e-invoices

Clause 1, Article 9, Decree No. 123/2020/ND-CP prescribes the cancellation of an e-invoice as follows:

- In case the seller discovers that an e-invoice granted with the tax agency’s code that has not been sent to the buyer contains errors, the seller shall notify the tax agency using Form No. 04/SS-HDDT provided in Appendix IA attached to Decree 123 and prepare a new e-invoice with a digital signature for sending to the tax agency for grant of a new e-invoice.

The tax agency shall cancel the e-invoices with erroneously issued codes saved on the tax agency’s systems.

4. Procedure for the destruction of e-invoices

* Things must be done

Clause 2, Article 27, Decree No. 123/2020/ND-CP prescribes the destruction of invoices by enterprises, economic organizations, business households, and individuals is prescribed as follows

- Make a list of invoices to be destroyed.

- Form an invoice destruction council

The invoice destruction council must consist of representatives of the leaders and accounting divisions of their organizations.

Invoice destruction council members shall sign the invoice destruction minutes and take responsibility before the law for any errors.

*  Invoice destruction dossier

 An invoice destruction dossier comprises:

- The decision to form the invoice destruction council, except for business households and individuals;

- The list of invoices to be destroyed, specifying the invoice title, invoice form symbol, invoice symbol, the number of invoices to be destroyed (from number… to number…, or the specific numbers of invoices to be destroyed if those invoices have non-consecutive serial numbers);

- The invoice destruction minutes;

- The invoice destruction notice, which specifies the type, symbol, and quantity of invoices to be destroyed, from number… to number…, the reason for destruction, date and hour of destruction, and destruction method (made according to the Form No. 02/HUY-HDG provided in Appendix IA attached to the Decree 123).

Invoice destruction dossiers shall be kept at enterprises, economic organizations, business households, and individuals using those invoices

Particularly, an invoice destruction notice shall be made in 02 copies, one for filing and the other to be sent to the direct tax administration agency within 05 days after invoices are destroyed.

Here are the regulations on the cancellation of an e-invoice and the destruction of an e-invoice.