VCN - Mr. Luu Duc Huy (photo), Director General of Policy Department, General Department of Taxation has made specific comments around the provisions of Decree 119 / ND-CP.
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Sir, the tax authorities have a long time to pilot the application of electronic invoices before the decision to apply nationwide. Could you tell us the advantages of this form, please?
The widespread application of e-invoices is implemented under Resolution No. 36a / NQ-CP dated October 14, 2015 on e-Government, promoting the development and application of information technology to implement the e-files, electronic invoices nationwide, and contributing to the management of informal economic activities.
Throughout the piloting process, there are some undeniable advantages of this form. First, electronic invoicing will help tax authorities and other agencies perform their state management functions well. For tax agencies, using electronic invoices helps the tax branch build a database on invoices. When all the enterprises develop electronic invoices, the tax branch will have a database of invoices, which can effectively serve the inspection, examination, tax refund and risk analysis for business or individual business.
Besides, customs offices at the border gates and airports can quickly get information to make tax refunds. The tax office and other state agencies do not need to spend time comparing bills as today.
For society, the use of electronic invoices overcomes fraud, use of illegal invoices, and false content in invoices. In fact, through the management of tax, the tax authorities have discovered some cases recording data differently in invoices; firstly by the seller stating and declaring a low value for low tax declaration, and secondly, by transferring to the buyer a value and tax rate that is higher for fraudulent purposes.
Therefore, the use of electronic invoices will overcome this situation because electronic invoices are electronic data messages. When electronic invoices are made, signed and sent, the contents of the seller's and buyer's electronic messages will be the same without the possibility of correction, so there will be no fraud as in the use of paper invoices mentioned above.
When the decree on electronic invoices officially came into force, hundreds of thousands of enterprises nationwide also have to "move" along. What will businesses benefit when applying the e-invoice, Sir?
The requirement to use electronic invoices instead of paper invoices provides many benefits to a business. Using electronic invoices helps businesses reduce costs, because if using paper invoices, businesses have to pay for printing paper, printing ink, invoice transfer costs to customers in cases of distant customers, as sellers must deliver or mail the invoice to the customer; particularly, to reduce the cost of archiving invoices.
Because electronic invoices can be stored in electronic databases, businesses do not have to spend on storage space like paper invoices. It also reduces invoicing time, enhances invoicing security; Helps to store and manage invoices permanently; No risk of loss, crumpled as when storing paper bills. At the same time, this method improves the efficiency of invoice management due to the rapid and timely collection of information electronically; Low cost, efficient operation and management.
Currently, the tax branch has implemented the information connection among tax offices and enterprises nationwide. Up to 99.9% of enterprises have made electronic declarations to the tax office; over 95% of businesses have paid electronically. This means that businesses have interacted electronically with the tax authorities.
In fact, not all enterprises or business households have adequate facilities and technical infrastructure to make electronic invoices. Does the tax office have any support for any difficulties, sir?
Decree 119 provides for five cases in which electronic invoices provided by the tax office are not collected, including:
Firstly, small and medium-sized enterprises, cooperatives, households and individuals doing business in geographical areas with difficult socio-economic conditions or geographical areas with exceptionally difficult socio-economic conditions.
Secondly, small and medium enterprises starting their own businesses according to the provisions of law, and households or individuals transforming into enterprises (except for the enterprises mentioned) within 12 months after the establishment of a business.
Thirdly, households and individuals that obtained a turnover in the previous year of VND 3 billion or more in the fields of agriculture, forestry, fishery, industry or construction, or have the preceding year's turnover of VND 10 billion in the field of trade and services for 12 months from the month of application of electronic invoices with the tax code.
Fourthly, other small and medium enterprises under the proposal of the People's Committees of the provinces and centrally-run cities and the Finance Ministry's regulations, excepting for those operating in economic zones, industrial parks and high tech zones.
Fifth, other cases needing encouragement for the use of electronic invoices shall be decided by the Ministry of Finance.
For the mentioned cases above, the General Department of Taxation shall directly provide services or authorize service organizations to provide e-invoices in the provision of electronic invoices with tax identification numbers free of charge.
It can be said that with Decree 119, it is the first time a decree regulates the time allowed for conversion within a 2 year period. What is the reason for the agency to extend such deadline, sir?
This is both a mandatory and an active and flexible provision enabling enterprises to have time to prepare for the conversion of electronic invoices nationwide. Specifically, organizations and individuals must complete the conversion to electronic invoices no later than November 1, 2020. This means that, since Decree 119 came into effect, both tax authorities and taxpayers have 24 months to switch to using and managing electronic invoices. This time is to prepare the conditions for facilities such as machinery, equipment, information technology infrastructure ... and training for households and businesses.
However, in practice, the conversion time is over 24 months, because before 1/11/2018 we have implemented preparatory steps on infrastructure such as IT infrastructure machinery, articles to apply electronic invoices when selling goods and providing services; Support for enterprise software installation.
At present, the tax authorities have taken steps to prepare for the conditions of material facilities such as: machinery, equipment, and information technology infrastructure, human conditions to apply electronic invoices when selling goods and provide services. The General Department of Taxation also directed the local taxation departments to train enterprises, assist enterprises in installing software to use electronic invoices.
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The General Department of Taxation has also implemented the information connection between tax offices and enterprises nationwide; completing the information technology infrastructure, providing technical solutions to ensure the implementation of electronic invoices on a large scale.
In addition to improving the legal basis, the Tax Department also issued circulars guiding and building information technology infrastructure. The Tax Department will also actively promulgate, guide and support, for ensuring that taxpayers apply electronic invoices in accordance with regulations.
Thank you Sir!
By Nhat Minh /Bui Diep