Circular No. 2128-TC/TCT regarding the issuance of invoices when buying and selling goods

LETTER

NUMBER 2128-TC/TCT OF SEPTEMBER 29, 1993 BY THE MINISTRY OF FINANCE ON THE ISSUE OF INVOICES WHEN BUYING AND SELLING GOODS
REGARDING THE ISSUE OF INVOICES WHEN BUYING AND SELLING GOODS

RESPECTFULLY SUBMITTED TO: - Ministries, sectors, mass organizations at the central level,

- People's Committees of provinces and centrally governed cities,

To implement the Prime Minister's Directive on strengthening the implementation of the system of issuing invoices when buying and selling goods and providing services for payment, following Circular No. 61TC/TCT dated July 22, 1993 of the Ministry of Finance, we would like to draw attention to the following points:

1- According to Decision No. 292/CT dated November 17, 1988 of the Council of Ministers (now the Government), all activities involving the purchase and sale of goods and provision of services for payment must issue valid invoices and vouchers uniformly issued by the Ministry of Finance. In addition to organizations and individuals engaged in production and business operations who must issue invoices and vouchers when buying and selling goods and providing services for payment... The following cases, if they have product sales or service provision for payment, must also issue invoices and vouchers (the type of invoice uniformly issued by the Ministry of Finance) to be handed over to customers:

- Individual households engaged in production and business operations that have not been granted business registration but sell products or provide services for payment must issue invoices and vouchers according to regulations, except for small and sporadic sales or service provision as stipulated in point b, Section 2, Part I of Circular No. 61TC/TCT dated July 22, 1993 of the Ministry of Finance.

- Administrative agencies, public institutions... without production and business functions but with surplus product or asset sales or service provision for payment must also issue invoices and vouchers when selling products or assets and providing services for payment.

Organizations and individuals engaged in production and business operations, administrative agencies, public institutions, mass organizations, military units... when purchasing goods or renting services from administrative agencies and public institutions must request the seller to issue invoices and vouchers (the type of invoice uniformly issued by the Ministry of Finance) to hand over to themselves as proof of payment settlement with the unit head and financial authorities.

State agencies under various sectors and levels assigned the task of inspecting and supervising the market to combat speculative trading, smuggling... when selling confiscated goods must use sales invoices uniformly issued by the Ministry of Finance to hand over to customers.

Tax agencies at all levels, when selling stamp papers to organizations and individuals, must also use invoices issued by the Ministry of Finance to hand over to customers. The issuance of invoices and vouchers to organizations and individuals engaged in production and business operations, administrative agencies, public institutions, mass organizations, military units with product sales or service provision for payment is entrusted to tax agencies at all levels.

When purchasing invoices at the tax agency, administrative and public institutions (without production and business functions) must follow these procedures:

- Submit a letter requesting to purchase invoices to the tax agency.

In the letter, clearly state the purpose of requesting to purchase invoices, the type of invoices needed, the estimated quantity of invoices needed for the year (divided by quarters), and commit to strictly implementing regulations on management, use, and settlement of invoices...

- Provide an introduction letter from the sending agency for the staff member to purchase.

The head of the tax agency, upon receiving the letter requesting to purchase invoices, will review the content of the letter, approve the sale, and guide the purchasing unit to fill out the invoice purchase form and maintain a record. At the same time, coordinate with the financial authority to organize inspections of invoice usage, promptly identify violations, and guide the units to use invoices correctly for their intended purposes and in accordance with regulations...

2- Production and business units, administrative agencies, public institutions, mass organizations, military units... when purchasing floating goods on the market, purchasing from family-run businesses, farmers, fresh produce... in small quantities where the sellers do not have invoices (the type of invoice issued by the Ministry of Finance) to hand over to buyers, the units must prepare a detailed list recording the name of the seller, the item, value, and signed and stamped by the head of the purchasing unit (as proof of accounting).

If purchasing from farmers or family-run businesses with large values and in large quantities, concentrated purchase locations, the purchasing unit must inform the local tax agency to conduct inspections and confirm the list before transporting the goods out of the purchase location.

3- All purchases from organizations and individuals engaged in business with large values must require the seller to issue invoices to hand over as proof of payment. Purchases from wholesalers or itinerant traders must also obtain invoices.

4- We request the People's Committees of provinces and cities, ministries, sectors, and mass organizations to direct production and business units, administrative agencies, public institutions, mass organizations, and military units under their jurisdiction, especially individual households engaged in production and business operations, to strictly implement the Prime Minister's Directive and the Ministry of Finance's guiding circular on the issuance of invoices and vouchers when buying and selling goods. At the same time, direct tax, finance, inspection, market supervision, police, prosecution agencies... to strengthen inspections, supervision, timely detection and handling of violations, and promote strict compliance by organizations and individuals.

5- To encourage buyers and service users to request sellers to issue invoices to hand over to them, and to encourage organizations and individuals to check, detect, and assist functional agencies in checking and detecting violations of the invoice issuance system. We request the People's Committees of provinces and cities to base on the specific characteristics of their localities to direct the finance and tax agencies to take appropriate measures to encourage compliance. Specifically:

- Timely reward organizations and individuals who detect or help the tax agency detect violations of the invoice issuance system when buying and selling goods as stipulated in Circular No. 25TC/TCT dated March 24, 1993 of the Ministry of Finance guiding the implementation of Decision No. 180TTg dated December 22, 1992 of the Prime Minister on establishing a fund to combat illegal business practices.

- Study organizing lottery draws based on the number of invoices issued and used in their locality to reward organizations and individuals who purchase goods with winning invoices.

- Timely examine and reduce taxes for individual households engaged in small-scale production and business operations that have properly maintained invoices and documents in accordance with point b, section 2, part II of Circular No. 61 TC/TCT dated July 22, 1993 issued by the Ministry of Finance when purchasing and selling goods.

- Apply income tax based on the difference between selling price and purchase price for organizations and individuals that have properly implemented accounting systems and invoice/document maintenance.