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Official release of Circular providing

guidance on Invoices for year 2011
After various rounds calling for comments on the new
regulations for invoicing, the Ministry of Finance has
officially promulgated Circular 153/2010/TT-BTC on 28
September 2010 (Circular 153), providing guidance on the
implementation of Decree 51/2010/ND-CP dated 14 May
2010 of the Government on invoicing requirements for sales
of goods and provision of services replacing Circular
120/2002/TT-BTC dated 30/12/2002. Following our tax
update on Decree 51/2010/ND-CP and draft Circular on
Invoices, we would like to brief you on the key contents in
such official Circular as follows:

VND 5 billion charter capital threshold for using self-
printed invoices

After many amendments, Circular 153 finally concluded that
companies, other than those located in industrial zones,
economic zones, export processing zones, high-tech zones,
having their charter capital at a threshold of VND5 billion can
use self-printed invoices.

Issuance and sale of invoices by tax authorities

Under Circular 153, tax authorities will only provide or sell
invoices to a limited group of entities, including non-
enterprises but having business activities, household families
and individuals doing business, small enterprises (who
employ less than 10 employees), enterprises located in
difficult and special difficult socio-economic areas.

Thus. usage of illegitimate invoices. Time for issuing invoices Circular 153 states the timing date for issuing invoices in some particular cases as follows: ► For real estates business. building houses for sale. entities which are not subject to the above group. banking services. or of invoices not continued to be used. or (ii) prepare many consecutive invoices of which the following invoice must indicate the previous invoice number. the date of issue will be the day of payment as scheduled. signature. ► Export invoice will be determined by exporter properly as mutually agreed among relevant parties. kind of invoice. etc. or (iii) make separate listing sheet attached to the invoice. there are some cases where sellers’ seal/stamp and buyers' signature are not required. stocks. where tax code of buyers and sellers’ stamp are unnecessary like invoices issued at the supermarkets. In addition. each delivery or handing over must be invoiced for corresponding volume and value of transferred goods and services. the date of invoice shall be periodically made in accordance with agreement entered by relevant parties with enclosure of statements. enterprises can select to: (i) issue several separate invoices. the Circular also provides detailed regulations on management of invoices such as: the settlement of invoices by mistake or with errors. of damaged and lost invoices. ► For goods delivered over a period of time or service provided instages. supporting documents. Compulsory items indicated on invoices The compulsory items which should be included on the invoice are as follows: name. electricity. requiring invoices shall not be permitted to purchase invoices from tax authorities. illegal usage of invoices. RE transfer with collection of money under the project schedule or included in the contract. and the regulations on reporting invoice use. Nevertheless. Mandate to issue invoice The seller is authorized to mandate a third party for issuing invoice which must include the full name of the seller and chop its seal on the top left of invoice (except for invoices printed from October 2010 Tax Update|Page 2 . etc. Taxable revenue of exports will be determined upon the date of customs clearance certified on the customs declaration. cases and procedures for invoice cancellation. name of goods or services… Invoices printed by orders must show name and tax code of organizations engaging in printing. such as invoices for water. ► For banking services. date. but no later than the end of the month arising transactions. Usage of invoices Circular 153 has provided guidance on the usage of invoices where total lines of an invoice are not enough to write all the list of goods and services. infrastructure construction.

The proxy must be made in writing by and between both related parties. process of inspection on invoices. October 2010 Tax Update|Page 3 . Others The Circular also provides some regulations related to the notice on invoice issuance in case of changing of mandatee or electronic invoices). forms of writing signals to identify invoices. the usage of invoices shall be subject to the new regulations. enterprises which would have not yet used up such invoices will follow the provision of Circular 153 for disposal of such unused invoices. From 1 April 2011. The deadline for registration submission shall be no later than 20 January 2011. Branch using one sample of invoice with its Company. By 31 March 2011. order for printing and release Notice on invoice issuance from 2010 as prescribed. Transitional clause Entities having purchased invoices or having invoices printed by orders or self-printed which will not be used up to 31 December 2010 may register with the tax authorities for continuing to use such invoices until Quarter I/2011. Enterprises wanting to use invoices pursuant to Circular 153 from 1 January 2011 will be allowed to print. on the second issuance of invoices and onwards. changing the noticed contents. difference to the community it This publication contains information in summary Sarah Jubb Director form and is therefore intended for general sarah. please visit tuan.huynh@vn. On any specific matter. All Rights Reserved. each of which is a fuyuki. Trang Pham Senior Manager trang.ey. a UK company limited by by helping our them to achieve their objectives.ey.ey. reference should be made to Ronelle Aceron Senior Manager the appropriate advisor. It is not intended to be a substitute for detailed research or the exercise Nitin Jain Director of professional judgment. Neither Ernst & Young ©2010 Ernst & Young Vietnam separate legal person acting or refraining in this publication.phan@vn.tran@vn. We make a difference please contact: About Ernst & Young Hanoi Office Ernst & Young is a global leader in Japanese Business Services Takahito Nakajima Senior Manager takahito. huong. Jeff Sea Director FEA no. our 141. Ernst & Young Global Ho Chi Minh Office October 2010 Tax Update|Page 4 .com/vn Thy Anh Huynh Senior Manager Japanese Business Services Ernst & Young refers to the global organization of member firms of Ernst & Fuyuki Anzai Manager Young Global Limited.pham@vn.pham@vn.ey. does not provide services to clients. 16000100 Vietnam Limited nor any other member of the global Ernst & Young organization can accept Nhan Huynh Senior Manager any responsibility for loss occasioned to any Ernst & Young Vietnam is dedicated to providing the highest quality professional The Gia Tran Senior Manager services to all its clients through assisting the.Contacts Ernst & Young For more information on this bulletin and Tax & Advisory Assurance │Tax│ Transaction │Advisory Services of Ernst & Young Vietnam. Tuan Dinh Pham Senior Manager For more information. Nam Nguyen Partner nam. Huong Vu Partner tax.gia. our clients and our wider communities achieve their www.000 people are united by our shared values and an unwavering Thanh Trung Nguyen Senior Manager commitment to quality. whilst realizing the growth aspirations of the firm Hoang Vu Phan Senior Manager and our people and making a positive hoang. ronelle. transaction and advisory guidance only.