Detailed instructions for adjusting incorrect electronic invoices

Electronic invoices are an important part of the accounting and financial activities of enterprises, helping to optimize the management process and comply with legal regulations. However, in the process of creating and issuing invoices, errors are inevitable. From entering incorrect product information, incorrect tax codes, amounts, to errors related to the summary table sent to the tax authority, each error case has its own way of handling according to current regulations.

In this article, Bizzi provides detailed instructions on adjusting incorrect electronic invoices, how to adjust them correctly according to the provisions of Decree 123/2020/ND-CP and Circular 78/2021/TT-BTC, helping businesses ensure the validity of invoices and avoid legal risks. Find out now!

1. Legal basis for adjusting electronic invoices with incorrect content

Electronic invoices are important documents in the accounting, tax and financial activities of enterprises. Issuing invoices with incorrect content can lead to many legal consequences, affecting tax declaration, payment and financial reporting. Therefore, the law clearly stipulates how to adjust erroneous electronic invoices to ensure transparency and compliance with regulations.

1.1. Legal documents regulating the adjustment of electronic invoices with incorrect content

Decree No. 123/2020/ND-CP

• Issued on October 19, 2020, regulations on invoices and documents.
• Article 19 of Decree 123/2020/ND-CP specifically stipulates Principles for handling erroneous electronic invoices, including methods:
  • Invoice replacement.
  • Create adjustment invoice.
  • Cancel invoice and create new one.

Circular No. 78/2021/TT-BTC

• Issued on September 17, 2021 by the Ministry of Finance, implementation instructions Some articles of the Law on Tax Administration and Decree No. 123/2020/ND-CP.
• Article 7, Clause 1 of Circular 78/2021/TT-BTC detailing Errors that need to be corrected and appropriate handling principles for each specific situation.

1.2. Error cases and handling principles according to regulations

Below is a summary table of cases of erroneous electronic invoices and how to handle them according to regulations:

1.3. Procedure for adjusting erroneous invoices

Businesses need to follow the correct procedure when handling invoices with incorrect content to ensure compliance with legal regulations:

• Identify the type of error on invoice
• Agreement with the buyer to choose the appropriate adjustment option.
• Create an adjustment/replacement invoice or cancel an invoice as prescribed.
• Send invoice adjustment notification to the tax system (if necessary).
• Additional tax declaration (if the error is tax related).

Complying with the above steps not only helps businesses avoid legal risks but also ensures transparency and accuracy in accounting and tax work.

2. Cases and ways to adjust incorrect electronic invoices

Handling erroneous electronic invoices is an important part of corporate financial management, ensuring compliance with current legal regulations. Below are detailed instructions for each specific case:

2.1. The electronic invoice has been assigned a code by the tax authority but has not been sent to the buyer and has incorrect product content.

Treatment options: Cancel the issued invoice and issue a new invoice in its place.

Processing procedure:

• Step 1: Taxpayers make a notice of incorrect invoices and send it to the tax authority according to Form No. 04/SS-HDDT. 
• Step 2: Taxpayers create new invoices, sign them and send them to the tax authority to issue new invoice codes to replace the erroneous invoices. 

2.2. The electronic invoice created and sent to the buyer has incorrect name and address; other parts are correct.

Treatment options: Notify the buyer that the invoice is incorrect and does not need to be reissued. At the same time, notify the tax authority of the incorrect electronic invoice according to Form No. 04/SS-HDDT.

3.3. The electronic invoice created and sent to the buyer has incorrect tax code, invoice amount, tax rate, tax amount or the goods listed on the invoice are not of the correct specifications or quality...

Treatment options: You can choose one of the following two ways:

• Method 1: Create an electronic invoice to correct an invoice that has been issued with errors. Before creating an adjustment invoice, the seller and buyer can draw up a written agreement stating the errors. 
• Method 2: Issue a new electronic invoice to replace the erroneous electronic invoice. Before issuing a replacement invoice, the seller and buyer can draw up a written agreement stating the error. 

3.4. Cancellation or termination of service provision

Treatment options: The seller shall cancel the created electronic invoice and notify the tax authority of the invoice cancellation according to Form No. 04/SS-HDDT.

3.5. Handling of erroneous paper invoices after switching to electronic invoices

Treatment options: In case a business has switched to using electronic invoices but discovers that the previously issued paper invoices contain errors, the handling will comply with the provisions of Clause 6, Article 12 of Circular No. 78/2021/TT-BTC.

3.6. The tax authority detects an error in the invoice and notifies the seller.

Treatment options: The seller checks the errors according to the tax authority's notice and takes steps to handle the errors according to regulations.

3.7. Detecting continued errors in adjusted or replaced invoices

Treatment options: In this case, the seller will follow the same procedure for subsequent handling of the error as when handling the error the first time.

3.8. Summary table of electronic invoices sent to tax authorities with errors

Treatment options: The seller sends adjustment information for the information declared on the summary table. Adjustment of invoices on the electronic invoice data summary table is carried out according to the provisions of Decree 123.

Understanding and correctly implementing regulations on handling erroneous electronic invoices not only helps businesses comply with the law but also ensures transparency and accuracy in business operations.

3. Notes when adjusting incorrect electronic invoices

Adjusting incorrect electronic invoices requires accountants to comply with legal regulations to avoid violations and ensure the validity of accounting documents. Below are important notes when adjusting incorrect electronic invoices.

Identify the error case to apply appropriate adjustment method

Not all errors on electronic invoices are handled in the same way. Accountants need to base on the type of error to choose the correct adjustment, replacement or cancellation method. Some important principles include:

• If the invoice has only minor errors (such as incorrect buyer address) but does not affect the amount or tax rate, an adjustment invoice can be created without cancellation.
• If the error is related to the value of goods or tax rate, an invoice must be issued to adjust the increase or decrease depending on the reality.
• If the error is serious and affects the entire transaction, the accountant can cancel the old invoice and issue a new one to replace it.

Deadline for submitting Form 04/SS-HĐĐT when adjusting invoices

According to current regulations, if a business discovers an error in an invoice and needs to make an adjustment, the accountant must submit Form 04/SS-HĐĐT to the tax authority no later than the last day of the VAT declaration period in which the adjustment invoice is issued. If overdue, the enterprise may be subject to administrative penalties for tax violations.

Handling errors in invoice symbols and invoice numbers

• If the error only concerns invoice number symbol, invoice symbol, invoice number, business No need to cancel or replace old invoice that only needs to be adjusted.
• This helps businesses save time and effort, while ensuring the accuracy of the accounting system.

Rules for adjusting invoice values

• If the electronic invoice has errors value of goods and services, businesses need to adjust according to the following principles:

• Increase value → Write a positive sign on the adjustment invoice.
• Decrease in value → Record negative sign on adjustment invoice.

• Adjust according to actual situation to ensure transparency and validity.

Supplementary tax declaration when adjusting invoices

Any invoice that is adjusted, replaced or cancelled affects the business's tax reporting. Therefore, accountants need to:

• Supplementary tax declaration related to the adjusted electronic invoice.
• If the invoice is canceled, the information must be updated in the tax records in accordance with tax management regulations.
• Closely monitor to avoid errors in VAT declaration.

Regulations on handling multiple errors on the same invoice

• If a business has adjusted or replaced an invoice once but then continues to discover errors, Subsequent treatments must use the same initial method.. For example:

• If you use an adjustment invoice for the first time, you must also use an adjustment invoice for subsequent times.
• If a replacement invoice has been issued, the next time continue to replace it without adjusting it.

• This principle helps avoid mistakes in accounting and tax declaration.

Agree with the customer before adjusting the invoice

• Before making adjustments or replacing invoices, businesses need to discuss and make a written agreement with the buyer.
• The agreement must clearly state the specific error and the solution.
• This helps avoid disputes and ensures transparency among stakeholders.

Adjusted invoice is the basis for accounting.

• Adjusted or replaced electronic invoices are considered valid certificate in accounting
• Accountants need to base on this invoice to adjust accounting books to match actual occurrence.

Store electronic invoices according to regulations

• Adjusted Invoices, Incorrect Invoices and Replacement Invoices must be stored in accordance with the provisions of the Accounting Law..
• Full and proper storage helps businesses avoid future tax audit and inspection risks.

Use electronic invoice software to reduce errors

• To limit errors, businesses should use electronic invoice software Integrated checking and quick invoice adjustment support.
• Solutions such as B-Invoice, MISA, Viettel Invoice help accountant:

• Check for errors before issuing invoices.
• Automatically create adjustment invoices according to the prescribed form.
• Support easier tax declaration.

• Using technology helps businesses Increase work efficiency and reduce the risk of error in electronic invoice.

4. Bizzi's electronic invoice software

Bizzi’s e-invoice software – B-Invoice is an advanced solution that helps businesses automate invoice processing, minimize errors and save costs. Launched in the context of digital transformation and the need to optimize business operations, Bizzi has quickly attracted the attention of many businesses.

• Recognized by the General Department of Taxation, fully complying with legal regulations: B-Invoice is an electronic invoice solution that meets the standards of Decree 123/2020/ND-CP and Circular 78/2021/TT-BTC, helping businesses feel secure in using it without worrying about tax risks.
• Optimal cost when using both output and input invoices: B-Invoice offers competitive prices for customers who need to use both types of invoices.
• Easy to integrate, flexible according to needs: The B-Invoice system can connect to accounting software, ERP systems, etc. to help businesses manage invoices effectively and save time.
• Diverse invoice template warehouse, support design on request: B-Invoice offers many invoice templates suitable for all types of businesses and allows customization according to individual needs.
• Store invoices for up to 10 years: Complying with legal regulations, B-Invoice helps businesses save storage costs by preserving invoices for 10 years.
• Automatically updated when there are changes from the Tax authorities: B-Invoice system always updates new versions promptly, ensuring compliance with current regulations.
• ISO 27001 certified security: Applying advanced technology, B-Invoice ensures information security and protects business invoice data.

Instructions on how to create an adjustment invoice on Bizzi software:

Applies to invoices in Released status.

Step 1: On the Menu bar, select "Manage invoices", then select "Sales invoices", then select "Adjust invoices"

Step 2: Fill in the adjusted invoice content, then click “Create new” to save the adjusted invoice information.

– The adjusted invoice content will include:

– After saving, the system returns to the invoice list screen and creates a new adjustment invoice.

Bizzi has been trusted by more than 1,000 businesses, including large corporations such as Grab, GS25, Circle K, Tiki, Guardian, Medicare and Pharmacity. As of October 2021, the total monthly invoice value processed through the Bizzi platform reached more than 300 million USD.

In addition, Bizzi also provides the Bizzi Expense solution, which helps manage business expenses, collect invoices, process input invoices, documents and report expenses simply and effectively.

With the above features and benefits, Bizzi is a powerful assistant for businesses in digitizing accounting processes, saving costs and ensuring safety and transparency in financial management.

Conclude

Correctly handling erroneous electronic invoices is a key factor in ensuring transparency and legal compliance in business operations. According to Circular 78/2021/TT-BTC and Decree 123/2020/ND-CP, businesses need to master relevant regulations to quickly and effectively adjust invoices.

To support businesses in this, Bizzi e-invoice software provides a solution to automate invoice processing, helping to minimize errors and increase work efficiency. Bizzi supports automatic extraction of invoice data, intelligent storage and management, helping businesses save costs and ensure safety in invoice management.

Applying technology solutions like Bizzi not only helps businesses comply with legal regulations but also improves operational efficiency, minimizes risks and optimizes workflows.