An invoice is a document issued by a seller on which information about the goods sale or service provision is displayed as prescribed by law. However, it is unavoidable that the invoice must be destroyed after it has been issued during the operation. So, under what circumstances can invoices be destroyed in accordance with the law? What is the procedure for canceling a invoice? Hong Bang Law Firm, with lawyers having experience in legal assistance for enterprises, would like to send the following advice to Clients:

Legal basis

Circular No. 39/2014/TT-BTC guidelines for the government’s decree no. 51/2010/ND-CP dated May 14, 2010 and Decree no. 04/2014/ ND-CP dated January 17, 2014 on sale invoices.

Cases of destroying invoices

Confirmed destroyed invoices

• Test-invoices, printed invoices that are incorrect, repeated, or damaged; plates, and similar instruments for creating ordered invoices shall be confirmed destroyed if no invoices remain their original forms, or text on invoices no longer exist so that such invoices cannot be restored or copied.
• Self-printed invoices shall be confirmed destroyed if invoice-printing software is modified so that it cannot keep creating invoices.

Cases of destroying invoices

• Printed ordered invoices that are incorrect, repeated, or redundant must be destroyed before the invoice-printing contract is finalized.
• Entities must destroy invoices that are no longer used. Invoices shall be destroyed within 30 days from the day on which a notification is sent to the tax authority. In case the tax authority has notified invoice expiration (except for the cases in which tax debt payment is enforced), invoices must be destroyed within 10 days from the day on which the tax authority notifies the expiration or lost invoices are found.
• Invoices issued by accounting units shall be destroyed in accordance with regulations of law on accounting.
• Invoices that have not been issued but are evidence of lawsuits must not be destroyed and shall be handled in accordance with law.

Procedures for destroying invoices

Applicable subjects: Destroying invoices of business entities (enterprises, cooperatives…), households and individuals doing business.

Procedure:

• Step 1: Make a list of invoices that need destroying
• Step 2: Establish an invoice destruction council

The business organization must establish an invoice destruction council. The invoice destruction council must be participated by representatives of the management board and accounting department of the organization.

Business households and businesspeople are not required to establish invoice destruction councils when destroying invoices.

• Step 3: Sign the invoice destruction record

Members of the invoice destruction council must sign the invoice destruction record and take responsibility before the law for any mistake.

The dossier of the invoice destruction includes:

• A decision to establish the invoice destruction council, except for business households and businesspeople;
• A list of invoices that need destroying, specifying: invoice names, template numbers, invoice symbols, quantity of invoices (a range of numbers or specific numbers of invoices in case numbers of the invoices being destroyed are not continuous).
• Invoice destruction record;
• open market operation A notification on invoice destruction record must contain: types, symbols, quantity, numbers of invoices being destroyed, reasons for destruction, date of destruction, method of destruction (template 3.11 Appendix 3 enclosed herewith).

The invoice destruction dossier shall be kept by the business entity that use invoices. The notification of invoice destruction result shall be made into 02 copies, one of them shall be kept, the other shall be sent to the supervisory tax authority within 05 days from the date of invoice destruction.

Above is Hong Bang’s advice on the procedure of destroying the invoice.

Services of Hong Bang Law Firm

Hong Bang Law Firm supports businesses and provides regular legal consulting services in the fields in a professional and quality manner, including:

• Legal advice on investment and business
• Legal advice on the client’s business activities
• Advising on tax and social insurance policies and laws
• Legal advice on intellectual property and protection of intellectual property rights
• Labor legal advice
• Legal advice on contracts
• Advising on procedures, form of meeting papers and adoption and decision-making of internal organizations in accordance with the law on enterprises
• Reviewing and providing legal documents at the request of clients for the organization and operation of clients
• Advising on handling disputes and internal conflicts of enterprises
• Advising on dispute resolution with partners, state management agencies and agencies and organizations related to the organization and operation of clients
• Guidance on the implementation of tasks that need to be in contact with competent state agencies.

If you need more detailed advice and answers as well as how to access this service, please contact directly our Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35.53.53 or call the free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com

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Best regards!