When released Electronic invoice With tax authority codes, many businesses and accountants still face the situation. Electronic invoice code denied—meaning the invoice is invalid and has no legal value. This is not only a financial risk but also creates disruption in the management and issuance of invoices. This article by Bizzi will be presented clearly reason common errors that cause invoices to be rejected for codes and provide effective solutions, helping business owners and accountants quickly correct errors and ensure tax compliance.
1. Electronic invoices and the importance of code issuance by tax authorities
Electronic bill is a form of invoice that is created, sent, received, stored and managed by electronic means. According to current regulations, electronic invoices are divided into two types: with and without tax authority codes. Of which, invoices with codes are the most popular and widely used type in business activities, especially for businesses that need to prove the validity of transactions to tax authorities.
An electronic invoice with a code is an invoice that is given an authentication code by the tax authority before the seller sends it to the buyer. This code includes a unique transaction number and encrypted string of characters, helps authenticate and ensure the integrity of invoices.
Importance of obtaining a code from the tax authority:
- Ensuring the legal value of invoices: An invoice is only legally valid when it is issued an authentication code by the tax authority. If the code is refused, the invoice will not be recognized, affecting the validity of the transaction.
- Minimize the risk of error and fraud: Providing codes helps tax authorities control invoice content and promptly detect cases with signs of violations, ensuring transparency in financial and accounting activities.
- Support businesses in tax declaration: Coded invoices are easily integrated into the electronic tax management and declaration system, helping to minimize errors and save time for accountants.
- Is a mandatory condition according to the law: According to Circular 78/2021/TT-BTC and Decree 123/2020/ND-CP, except for some specific cases, most businesses are required to use electronic invoices with tax authority codes.
Therefore, if an electronic invoice is denied a code, the business needs to quickly determine the cause for timely handling, to avoid affecting the process. invoice and tax obligations.
2. Conditions for electronic invoices to be granted codes by tax authorities
To avoid the situation Electronic invoice code denied, businesses need to ensure that they fully meet the conditions prescribed in Point a, Clause 2, Article 17 of Decree 123/2020/ND-CP. The code issuance is done fully automatically through General Department of Taxation system, so any small mistake can cause the invoice to be rejected. Specific conditions include:
- Full electronic invoice content as required by law: The invoice must have all required information fields such as seller's tax code, buyer's name, list of goods/services, unit price, total amount, tax rate, tax amount and total payment.
- Correct format of General Department of Taxation: Invoice files must be created in the correct XML format as prescribed so that the system can read and process them. Incorrect formatting will cause the invoice to be automatically rejected.
- Matches registered information: Invoices must match the business information registered with the tax authority such as tax code, address, unit name, invoice model number and symbol.
- Not subject to suspension of use of electronic invoices with codesEnterprises that are under enforcement or are suspended from using electronic invoices with codes according to the decision of the tax authority will not be granted codes during that period.
Proactively checking and standardizing the invoice issuance process according to the above criteria will help businesses minimize the risk of code rejection, thereby ensuring that invoice issuance activities take place smoothly and in accordance with legal regulations.
3. Common errors that cause electronic invoices to be rejected for code issuance
Rejection of e-invoice codes not only causes disruption in business processes but also affects tax obligations and business reputation. Below are common mistakes Accountants need to pay attention to avoid being refused invoice codes by tax authorities:
- Incorrect contact information format or length
One of the common errors is that the phone number is longer than 20 characters or the email is not in the correct format. Make sure that the phone number contains only numbers and is not longer than the specified length. The email must have a standard format, for example: username@domainname.com. - Incorrect or missing bank information and tax code
Bank account numbers exceeding 30 characters or entering the tax code in the wrong format will cause the system to be unable to verify the information. According to Circular 105/2020/TT-BTC, the tax code must be standard with 10 or 13 digits depending on the type of business. In addition, omitting information about tax rates will also cause the invoice to not be coded, especially in cases of applying incentives such as discounts or promotions. - Missing or incorrect buyer information and invoice date
The buyer's name is required information, even for customers without a tax code. At the same time, the invoice date must be greater than the date the tax authority approves the registration for using electronic invoices, to avoid errors that cause the invoice to be rejected by the system. - Errors arising from the tax authority system or service provider
In case the tax authority's code issuance system encounters technical problems, businesses will be notified and guided through official channels to handle the problem. Similarly, if the invoice service provider encounters problems, they are responsible for coordinating with the General Department of Taxation to promptly resolve and support businesses.
4. Instructions for handling when electronic invoices are denied code issuance
When Electronic invoice code denied, the business cannot use this invoice for tax declaration or commercial transactions. Proper handling not only helps ensure compliance with tax authorities but also minimizes legal and financial risks. Below are detailed instructions for businesses to quickly overcome this situation.
4.1. Check the reason for code rejection
First of all, accountants need to clearly identify the cause of the problem. Electronic invoice code denied from the tax authority system. Some common ways to check on Bizzi platform:
- On Bizzi software: Enter the subsystem Manage electronic invoices > select item History of sending invoices to CQT > find rejected invoice > click on icon Data transmission log to see the submission details.
- Find error messages from CQT: Watch for status lines with content such as “Code Refused”, “CQT Not Accepted”, or “Invalid Data”. Bizzi will display clear warnings for accountants to easily recognize.
- XML file analysis on Bizzi system: You can download the XML file to your computer, open it with a browser (for example Internet Explorer or Edge), use Ctrl + F and search for the keyword “Mloi” to look up the specific error description from the General Department of Taxation.
Some common errors: incorrect data format, missing required information, incorrect buyer tax code, duplicate invoice number...
4.2. Create new invoice and send code
After determining the cause and editing the invoice content according to regulations, the accountant needs to re-create the invoice and send it to the tax authority to issue a new code.
- Delete old invoice on the software to avoid confusion during management.
- In case the error originates from the tax authority's system, the enterprise can request to use printed paper invoices issued by the tax authority. When the problem is resolved, it is necessary to establish paper invoice usage report by Model No. BC26/HDG, Appendix IA – Decree 123/2020/ND-CP.
Note: Invoices with rejected codes are not legally valid and No need to submit form 04/SS-HĐĐT.
4.3. Processing steps on software (for example EasyInvoice)
With software like EasyInvoice, businesses can quickly handle code rejections by following the following process:
- Search for invoices with status “Issued – Refused to issue code”.
- Select the invoice to be processed > click “Issue invoice” to resend after correcting the error.
- After successfully receiving the code, issue the invoice as usual.
Using electronic invoice software with an intuitive interface and integration with the accounting management system will help businesses save time and minimize errors during processing.
5. Optimize invoice management process with Bizzi solution
To minimize the situation Electronic invoice code denied Due to data errors or process errors, businesses need a comprehensive solution to help closely control and automate related steps. Bizzi provides an intelligent platform to support the finance and accounting department to optimize the process of issuing, reconciling and storing electronic invoices, while ensuring strict compliance with legal regulations.
5.1. Automatic processing and reconciliation of input invoices (IPA + 3way)
Bizzi helps simplify and automate the process of receiving input invoices, minimizing manual errors - a common cause of invoice code rejection:
- Automatically process input invoices: Use RPA and AI technology (Bizzi Bot) to download, read data and check the validity of invoices as soon as they are received.
- Automatic invoice reconciliation – PO – GR (3-way matching): Automatic reconciliation system between invoices, purchase orders (PO) and warehouse receipts (GR), helping to detect discrepancies promptly.
- Verify valid supplier: Check the supplier's tax code and operating status on the tax system to ensure that the invoice does not originate from a risky subject.
- Risky Invoice Warning: The system automatically warns when detecting suspicious invoices, helping businesses promptly handle and avoid being refused a code by tax authorities.
- Automatic invoice storage input: Data is securely stored for 10 years, ensuring compliance with the provisions of Circular 78/2021/TT-BTC and Decree 123/2020/ND-CP.
- API integration with ERP systems & accounting software: Data is instantly synchronized between Bizzi and internal platforms, ensuring consistency and reducing manual effort.
5.2. Management of output electronic invoices (B-invoice) and accounts receivable (ARM)
Not only supporting input invoices, Bizzi also optimizes the process of issuing output electronic invoices and managing debts to prevent risks related to creating invoices with incorrect format or content:
- Create electronic invoices according to B-invoice standards: Ensure XML/PDF format is correct, reducing the risk of code rejection due to technical errors or invalid content.
- Direct connection with tax authorities: The system is connected to the invoice receiving portal for quick authentication and code issuance.
- Store output invoices on time: Automatically stored in the system for a minimum period of 10 years.
- Manage invoice status effectively: Track each invoice status from creation, submission, validation, payment, cancellation or adjustment, ensuring transparency and easy control.
- Intelligent Debt Management (ARM): The system supports automatic debt reminders, monitors and warns of due debts, and creates detailed reports for easy analysis and processing by accountants.
If you need help optimizing your billing process to Avoid code rejection, Bizzi is a reliable choice to automate the entire financial and accounting process, from invoices to debts, bringing outstanding efficiency to businesses.
Businesses register for trial at: https://bizzi.vn/dang-ky-dung-thu/
6. Conclusion
Rejection of electronic invoices is not an uncommon situation during the invoice issuance process. The cause often comes from technical errors such as incorrect tax code format, invoice date, buyer information or tax rate. However, businesses can completely proactively handle this if they understand the process.
When receiving a rejection notice, the accountant needs to quickly determine the cause through the management system or notice from the tax authority, then edit the information and issue a new invoice. Because an uncoded invoice will not be legally valid, the business does not need to perform the invoice cancellation procedure according to the form. It is important to monitor and ensure that the new invoice is successfully coded before sending it to the customer.
Fast and correct processing not only helps ensure the validity of documents but also minimizes tax risks and avoids errors that may arise later. With the support of technology platforms like Bizzi, controlling and adjusting invoices becomes simpler and more efficient than ever.
