CIRCULAR

GUIDING AMENDMENTS AND SUPPLEMENTS TO THE FINANCE MINISTRY’S CIRCULAR No. 120/2002/TT-BTC OF DECEMBER 30, 2002, WHICH GUIDES THE IMPLEMENTATION OF THE GOVERNMENT’S DECREE No. 89/2002/ND-CP OF NOVEMBER 7, 2002 ON THE PRINTING, ISSUANCE, USE AND MANAGEMENT OF INVOICES

On December 30, 2002, the Ministry of Finance promulgated Circular No. 120/2002/TT-BTC guiding the implementation of the Government’s Decree No. 89/2002/ND-CP of November 7, 2002 on the printing, issuance, use and management of invoices. To conform to the practical situation, the Ministry of Finance hereby guides the amendments and supplements to Circular No. 120/2002/TT-BTC of December 30, 2002 regarding the invoice purchase and sale procedures as follows:

1. To replace Point 1, Section V, Part B of the Finance Ministry’s Circular No. 120/2002/TT-BTC of December 30, 2002 with the following new one:

“1. Invoice purchase procedures:

1.1. Procedures for first-time purchase of invoices:

a/ For business organizations: When purchasing invoices for the first time, business organizations must submit the following papers:

- The application for purchase of invoices (made according to a set form).

- The business organization’s letter of introduction, signed by a competent representative, introducing the person to contact the tax office for purchase of invoices. The letter of introduction must state the full name, position and serial number of the people’s identity card of the person introduced for purchase of invoices.

- The copy of the business organization’s tax registration certificate, certified as true copy.

When coming to buy invoices, the persons named in the papers of introduction must produce their people’s identity cards (still in their use duration as prescribed by law) to the tax offices.  

b/ For business households: When purchasing invoices for the first time, business households paying taxes according to declarations must submit the following papers:

- The application for purchase of invoices (made according to a set form).

- The copy of the tax registration certificate. When coming to the tax offices to submit the dossiers of application for the purchase of invoices, to bring the original tax registration certificates for the tax offices to compare and check the authenticity of the copy. For notarized copies, their originals are not required.

- Where the heads of the business households authorize other persons, they must make letters of authorization as prescribed by law and take responsibility before law for such authorization. Authorization letters must clearly state the full names, addresses and serial numbers of the people’s identity cards of the authorized persons.

 When coming to contact the tax offices, the heads of business households or their authorized persons must produce their people’s identity cards (still in their use duration as prescribed by law). 

c/ The dossiers of first-time purchase of invoices of business organizations or business households shall be submitted to the tax offices that directly manage them.

When their transaction and/or business places are relocated, within 10 working days, the business establishments must send notices thereon to the tax offices.

d/ Responsibilities of the tax offices: To receive the dossiers of first-time purchase of invoices from the business organizations or households and examine the procedures for first-time purchase of invoices as prescribed at Points a and b above.

The specific contents of examination are as follows:

+ Examining and comparing the full names and serial numbers of the people’s identity cards of the persons coming to purchase invoices with the full names and serial numbers of the people’s identity cards written in the applications or letters of introduction or authorization.

+ Examining the contents written in the applications for purchase of invoices, ensuring completeness and explicitness according to set forms.

+ Comparing the names of the business establishments, business registration numbers and tax codes written in the applications for purchase of invoices with the tax registration certificates.

After checking the above-said contents and seeing that they are compatible, the tax offices shall issue appointment slips to the business establishments, stating the dates of appointment for sale of invoices, which shall be decided by the tax offices on a case-by-case basis but must be within 5 working days as from the date of receipt of the dossiers. Before the dates of appointment with the business establishments, the tax offices shall conduct field inspection of the business places to ascertain whether or not the business establishments actually do business at the places they declare. The field inspection results must be reflected in the written records certifying the business places of the invoice-purchasing organizations or individuals (made according to a set form). After conducting the field inspection, if all conditions are met, the tax offices must carry out the procedures for issuing the invoice purchase books (made according to a set form) to the business establishments, at the same time sell invoices for the first time on the dates of appointment. If the enterprises are ineligible for purchasing invoices, the tax offices must notify them thereof.

The quantities of invoices the business organizations and individuals may purchase for the first time must not exceed 2 books.

1.2. Procedures for subsequent purchases of invoices:

a/ Business organizations or households that make subsequent purchases of invoices shall submit to the tax offices the following papers:

- For business organizations: The letters of introduction, signed by competent representatives, stating the full names, positions and serial numbers of the identity cards of the persons introduced for purchase of invoices, and the quantities of invoices applied for purchase.

- For business households: The applications for purchase of invoices, clearly stating the full names of the heads of the business households, the serial numbers of the people’s identity cards, the addresses of business places, the quantities of invoices applied for purchase.  Where the heads of the business households authorize other persons, they must make authorization letters as prescribed by law. Authorization letters must clearly state the full names and serial numbers of identity cards of the authorized persons.

- The invoice purchase books, issued by the tax offices.

When coming to purchase invoices, the persons introduced by the business organizations to purchase invoices, the heads of the business households or their authorized persons must produce to the tax offices their original people’s identity cards (still in their use duration as prescribed by law).

b/ Responsibilities of the tax offices:

To receive the dossiers of purchase of invoices from business organizations and households. To examine the dossiers and compare them with the people’s identity cards so as to ascertain whether or not the persons coming to purchase invoices have the correct full names as written in the introduction letters made by the business organizations or the heads of the business households or their authorized persons. If everything is correct, the tax offices shall have to sell invoices to the business establishments for use with the quantities not exceeding those already used in the preceding month. For example: On August 10, Company A wants to buy 15 invoice books. As it used only 12 books in July. it may only apply for purchase of 12 books at most.

- For newly established business establishments, if they have used up the first-time purchased invoices (02 books) before the end of the month, the tax offices shall base themselves on the time of using first-time purchased invoices to decide on the quantities of invoice books allowed to be purchased subsequently. After determining the quantities of invoices used in a month, the tax offices shall sell invoices with the quantities used in the preceding month.

- For the business establishments which violate Article 14 (except Points 1 and 2), Article 15 and Article 16 of the Government’s Decree No. 89/2002/ND-CP of November 7, 2002 prescribing the printing, issuance, use and management of invoices, if they abide by the sanctioning decisions and pay the fines and tax arrears (if any) immediately into the State budget, they shall be sold invoices as for the first-time sale (02 books at most).

 After three months, if the business establishments no longer commit violations, the tax offices shall sell invoices to them like business establishments which well abide by the regime of management and use of invoices.”

2. To replace Point 1.8, Section VI, Part B of the Finance Ministry’s Circular No. 120/2002/TT-BTC of December 30, 2002 with the following new one:

“1.8. For the issuance of loose invoices:

For the business households which have paid taxes stably for six months or one year and do not need to use invoice books, business households which have committed violations and are not sold invoice books by the tax offices, and  households which neither make business registration nor conduct regular business activities but have revenues from goods and/or services, if they need to use invoices, they shall be issued by the tax offices loose invoices (free of charge) for hand-over to customers. 

Loose invoices shall be directly issued by the tax sub-departments or tax teams. Depending on the characteristics of the localities and the demands for loose invoices, the tax sub-departments shall publicly announce the invoice-selling places most convenient for the tax payers in need of loose invoices. Before receiving loose invoices, the subjects must pay taxes (collected in tax receipts). The persons in need of loose invoices shall submit written declarations of their revenues together with the contracts and purchase and sale papers between the two parties, serving as grounds for the issuance of loose invoices. Invoices shall be made at the tax offices with copies 1 and 2 handed over to the persons issued with the invoices and copies 3 kept by the tax offices. Loose invoices must be stamped with the tax offices’ seal on the upper left corner of each copy. The tax offices must open books to separately monitor organizations and individuals that use loose invoices like invoice-using organizations and individuals.”

3. To supplement at the end of Point 1, Section VI, Part B of the Finance Ministry’s Circular No. 120/2002/TT-BTC of December 30, 2002 the following contents 1.12 and 1.13:

“1.12. For business households which pay tax stably, have business registration and tax registration certificates, if they need to use invoices, they shall be sold sale invoices according to the following provisions:

When the business households which pay taxes stably purchase invoices for the first time, they must strictly comply with the procedures prescribed at Point 1.1 of this Circular. In case of subsequent purchases of invoices, they must strictly comply with the procedures prescribed at Point 1.2 of this Circular. In addition, they must bring the invoice books which they purchased last to the tax teams which directly manage them for checking of the use of invoices, the revenues written in the invoices and certification by the tax team leaders that they have committed no violations in the use of invoices in the applications for purchase of invoices.

The tax offices may refuse to sell invoices in the following cases: Business households which pay taxes stably violate Article 14 (except Points 1 and 2), Article 15 and Article 16 of the Government’s Decree No. 89/2002/ND-CP of November 7, 2002; fail to bring along invoices books purchased in the immediate preceding time to the tax offices for checking and conducting business while delaying in paying taxes.

The quantity of invoices to be sold to each business household which pays taxes stably for six months or one year is one book at a time.” 

“1.13. For the business households which pay taxes stably and use invoices, if their revenues recorded in invoices are higher than their stable revenues, they must pay taxes recorded in the invoices.

If their revenues recorded in invoices are lower than their stable revenues, they must pay taxes according to their stable revenues. 

The tax offices shall coordinate with the Tax Consultation Councils in conducting investigations to determine the revenues of business households which pay tax stably for six months or one year in order to set taxes close to reality, ensuring equality and preventing tax losses. The business households may complain if they see that their stable revenues are not suitable to their actual business situation.”

This Circular takes effect 15 days after its publication in the Official Gazette. The provisions in the Finance Ministry’s Circular No. 120/2002/TT-BTC of December 30, 2002 which are not amended or supplemented in this Circular remain effective. Any problems arising in the course of implementation should be reported promptly by organizations and individuals to the Ministry of Finance for study and settlement.

Form No. 01

SOCIALIST REPUBLIC OF VIETNAM

Independence – Freedom – Happiness

-----------------

…, day…month…year

APPLICATION FOR INVOICE PURCHASE

To: …………………..

1. Name of business organization:…………………………………………………..

- Business registration certificate No.:………………………………………………….

Issued on:……………………………………………………………………………..

By:……………………………………………………………………………………..

- Tax identification number.:……………………………………………………………..

Issued on:……………………………………………………………………………

- Production and business lines:………………………………………………………

2. Transaction office:

- Owned by the unit:…………………………………………………………………

- Rented:……………………………………………………………………………

- Borrowed:…………………………………………………………………….

House number.:…                                                          ………lane

…………….street                                   ………ward (commune)

…………….district                                 ………province (city)

- Telephone number:……………………………………………………………

3. Other business locations (if any) in the same province, city:

*………………………………………………………………………………..

*………………………………………………………………………………..

*…………………………………………………………………………………

*……………………………………………………………………………….

*………………………………………………………………………………

*………………………………………………………………………..

Being a newly-established establishment, we have thoroughly studied tax laws, the Government’s Decree No. 89/2002/ND-CP and the Finance Ministry’s Circular guiding the printing, issuance, use and management of invoices.

We hereby commit that:

- The above declarations are completely true, if there is any false or inadequate declaration, tax offices may restrict, refuse or suspend the sale of invoices to, or suspend the use of invoices by, our unit.

- We shall manage invoices issued by the Ministry of Finance in strict accordance with the State’s regulations. If committing violations, we shall bear full responsibilities before law.

Head of the unit

(Signature and stamp)

Enclosed with:

+ The unit’s introduction paper assigning their officials to purchase invoices

Notes:

+ This form shall apply to economic organizations.

+ Point 2: Only accurate lines shall be retained while other lines shall be crossed out. 

In cases where business locations are rented or borrowed, names of leasing or lending organizations or individuals should be clearly inscribed.

+Point 3: To inscribe only business locations that make dependent cost-accounting and share invoices with the unit

Form No. 02

SOCIALIST REPUBLIC OF VIETNAM

Independence – Freedom – Happiness

---------------

…, day… month…year

APPLICATION FOR INVOICE PURCHASE

To:………………………………………………………………………………………

1. Name of the business household’s master:………………………………………….

- Date of birth:……………………………………………………………………….

- Permanent residence registration: House number:.…..    …………..street (village, commune):

……………..district        , ……………….  province (city):

- Place of temporary residence registration (if any):

House number:.…..                    ………………….lane

……………….street (village),………….ward (commune)

……………….district.,………………….province (city):  

- Identity card No.: …………………..issued on ………………

at:…………………………………………………………………………………..

- Business registration certificate No.:……………………………………..

Issued on:………………………………………………………………

By:………………………………………………………………………….

- Tax identification number.:……………………………………………………..

Issued on:…………………………………………………………………..

- Production and business lines:……………………………………………

- Contact telephone number: Fixed telephone:………………………….

                                      Mobile phone:…………………………..

2. Business location:………………………………………………….

- House number.:                       …………………..street (village):

-…………..district,         ……………province (city):

- The above-stated business location is owned by the family or rented or borrowed:……

- Telephone number at business location:……………………………………

I have thoroughly studied tax laws, the Government’s Decree No. 89/2002/ND-CP and the Finance Ministry’s Circular guiding the printing, issuance, use and management of invoices.

I hereby request the Tax Department to allow me to buy invoices of types:

I hereby commit that:

-The above declarations are completely true, if there is any false or inadequate declaration, the tax offices may restrict, refuse or suspend the sale of invoices to, or suspend the use of invoices by, me.

- I shall manage invoices issued by the Ministry of Finance in strict accordance with the State’s regulations. If committing violations, I shall bear full responsibilities before law.

                                    Business household’s master

                                    (Signature and full name)

Notes:

- This form shall apply to individual business households.

- If the business households’ masters authorize others to buy invoices, authorization papers are required.

- If the business location is rented or borrowed, the name of leasing or lending organization or individual must be clearly inscribed.

Form No. 03

APPOINTMENT SLIP FOR INVOICE PURCHASE

Today, on day…month…year…

- At the Print Forms Management Section of the Tax Department of………………………

- At the Print Forms Management Group of the Tax Sub-Department of…………………

we have received the dossier of application for invoice purchase of Mr./(Mrs.):……………………

People’s Identity card No……………..representing……………..according to the introduction paper (according to the invoice purchase application of the business household’s master or the authorization paper).

Tax identification No:…………………………………………..

Address:………………………………………

The dossier comprises:

1.

2.

3.

4.

In order to perform the management in accordance with the reality

The Print Forms Management Section of the Tax Department of….

The Print Forms Management Group of the Tax Sub-Department of …..appoints organization/individual to come to this place on day….month…year at the tax office’s disposal.

On behalf of the Print Forms Management Section (Group)

(Signature and full name)

Form No. 04

CERTIFICATION

OF BUSINESS LOCATIONS OF ORGANIZATIONS/INDIVIDUALS APPLYING FOR INVOICE PURCHASE

Today, on day... month…year 200…

In the locality of……………………..

We, include

- Full name:……………………………Position:……………………………….

- Full name:…………………………….Position:………………………………..

- Full name:…………………………….Position:………………………………

of unit (Section, Tax Sub-Department, tax group):……………………………..

Certify business location of organization/individual:…………………………..

Having business location as stated in the application for invoice purchase              

Not having business location as stated in the application for invoice purchase        

At:……………………………………………………………………………………

Notes: This form shall be made by tax officers

(Having or not having business location as stated in the application for invoice purchase: to mark (x) in corresponding block).

- The witness shall be the house owners or representatives of the organizations leasing business locations, individuals living near the to-be-verified locations, heads of the population groups, village chiefs, representatives of People’s Committees of wards or communes, local policemen… .-