[Taxation] VAT declaration information regarding purchase VAT invoices with incorrect applicable tax rates
The Hanoi Tax Department has issued an official letter No. 62665/CTHN-TTHT dated August 25, 2023 regarding the VAT declaration for input VAT invoices with incorrect tax rates.
According to the newsletter, if the buyer or seller notices an error in the tax rate after the e-invoice created pursuant to Decree No. 123/2020/ND-CP (hereinafter called “Decree 123”) is sent to the buyer, the seller The adjustment process will be carried out based on Article 19, Paragraph 2, Item b of Decree 123.
If the invoice was prepared in accordance with Decree No.51/2010/ND-CP and Decree No.04/2014/ND-CP, the adjustment process will be carried out based on Article 12, Paragraph 6 of Circular No.78/2021/TT-BTC, which is regarding the correction of paper invoices.
If the tax rate stated on the invoice was incorrect and the seller did not adjust it himself, but the tax audit found that the seller had declared and paid tax based on the tax rate stated on the invoice and it was confirmed, the buyer can deduct input VAT from the invoice at the rate stated on the invoice in this case.
However, this point will ultimately require confirmation by the seller’s competent tax bureau pursuant to Article 12, Paragraph 5, b of Circular No.219/2013/TT-BTC.
Article 16 of the Tax Administration Law (Law No. 38/2019/QH14) provides for the buyer to request confirmation from the seller’s competent tax bureau regarding the seller’s fulfillment of tax obligations. Documents requesting confirmation regarding the fulfillment of tax obligations shall be submitted using the form prescribed in Circular No.80/2021/TT-BTC and as directed in Article 70 of the same Circular.
*This article was translated by Yarakuzen.