Decision No. 110/2002/QD-BTC On Amending and Supplementing the Issuance, Management, and Usage Regime for Sales Invoices

Pursuant to …;

Regarding the amendment and supplementation of the issuance, management, and use of sales invoices

__________________

THE MINISTER OF FINANCE

Pursuant to the Value Added Tax Law and the Corporate Income Tax Law dated May 22, 1997;

Pursuant to Decree No. 178/CP dated October 28, 1994 of the Government stipulating the functions, tasks, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 22/CP dated April 17, 1996 of the Government on administrative penalties in the field of taxation;

Pursuant to Decree No. 49/1999/NĐ-CP dated July 8, 1999 of the Government on administrative penalties in the field of accounting;

To implement Directive No. 19/2002/CT-TTg dated September 13, 2002 of the Prime Minister on strengthening tax management for VAT;

To prevent illegal acts of buying, selling, and using invoices improperly for tax deduction, refund, and overstating the value of goods to embezzle state budget funds; at the proposal of the Director General of the State Tax Administration.

Pursuant to …;

Article 1: Supplement the issuance, management, and use of sales invoices issued together with Decision No. 885/1998/QĐ-BTC dated July 16, 1998 of the Minister of Finance as follows:

1- Supplement Article 10 as follows:

1.1- The procedures for purchasing invoices for the first time from the Ministry of Finance include:

a- For organizations and individuals purchasing invoices:

+ An introduction letter for purchasing invoices signed by the head of the organization.

+ A purchase invoice letter for organizations signed by the head; a request for purchasing invoices for household production and business operations signed by the household head (according to the attached model).

+ Presenting the identification card of the person directly purchasing the invoices.

+ A certificate of tax registration accompanied by a photocopied copy.

+ A diagram of production and business locations; transaction offices drawn by the organization or individual themselves, confirmed and committed by the head of the organization or individual regarding: Address, house number (for cities, towns) and village, commune... (for rural areas) to have grounds for monitoring transactions and managing. When changing production and business locations, transaction offices within 10 days, the organization or individual must send the new location diagram to the tax authority. If the organization or individual rents a production and business location, transaction office, they must present the lease contract (for comparison) and a photocopied copy for the tax authority to keep.

b. Responsibilities of the tax authority:

- The tax authority, after receiving the first-time invoice purchase application of organizations and individuals within five working days, shall be responsible for checking the actual existence of the organization or individual to sell invoices according to regulations; the quantity of invoices sold for the first purchase shall not exceed two volumes. The content of the inspection is stipulated in paragraph a, section 1.1, of this article and the identity of the head of the organization or individual engaged in production and business.

- The Director of the Provincial Tax Department, the Head of the District Tax Office, and the Team Leader of the Local Tax Team must be responsible for directing local tax officers to inspect within their jurisdiction and closely cooperate with other local tax authorities in managing and using invoices.

1.2- Procedures for purchasing invoices subsequently:

+ An introduction letter (signed by the head of the organization) accompanied by a purchase invoice letter for organizations; a request for purchasing invoices for household production and business operations signed by the household head.

+ Presenting the identification card of the person directly purchasing the invoices.

+ An invoice purchase form issued by the tax authority.

+ A list of invoices, documents, goods, and services sold according to Model No. 02/GTGT issued together with Circular No. 82/2002/TT-BTC dated September 18, 2002 of the Ministry of Finance (including organizations and individuals taxed under the direct method), confirmed by the tax management department that taxes have been declared. Based on the list of invoices used, the tax authority determines the quantity of invoices to be sold to the organization or individual.

Specifically, for households purchasing invoices for the first time and subsequent times, it must be the household head who purchases the invoices directly.

1.3- Stamping the name, address, and tax code on invoices:

The tax authority organizes the stamping of the name, address, and tax code of the organization or individual purchasing invoices on the second copy of the invoices before taking them out of the tax authority's premises.

2- Replace the content of Article 22 as follows:

The tax authority has the right to refuse to sell invoices or issue a decision to suspend the use of invoices for organizations and individuals who violate the use of invoices.

2.1- Tax authorities at all levels have the right to temporarily stop selling invoices to organizations and individuals purchasing invoices:

a- Not meeting the procedures and conditions stipulated for selling invoices as specified in point 1 of this article.

b- Not declaring taxes or declaring taxes but having no revenue after one month of purchasing invoices.

c- Not reporting the use of invoices as prescribed.

2.2- Tax authorities at all levels have the right to suspend the use of invoices for organizations and individuals who violate in the following cases:

a- Immediately suspend for acts of selling blank invoices (white invoices) and issuing invoices without corresponding goods or services.

b- Acts of violation below have been penalized by the tax authority but continue to violate such as:

- Erasing, altering invoices to show higher values than the actual value of goods or services.

- Issuing invoices for goods or services on the invoice given to the buyer (second copy) different from the invoice kept at the business (first copy).

- Business establishments losing invoices but not reporting to the tax authority as required by current regulations.

- Cases of violating the management and use of invoices, documents, and taxes that have been penalized by the tax authority.

Organizations and individuals who have rectified and corrected these violations will continue to be considered by the tax authority for selling invoices. In necessary cases, the tax authority may recommend the licensing authority to suspend or revoke the business registration of the violating organization or individual.

Article 2: Ministries, agencies equivalent to ministries, government agencies, People's Committees of provinces and centrally-administered municipalities are responsible for directing and supervising the implementation of the issuance, management, and use of sales invoices in their sectors and localities.

Article 3: This Decision takes effect fifteen days after the date of signature. All previous regulations and guidance contrary to this Decision are abolished.