How to issue electronic invoices for business households is an important requirement, not only to comply with legal regulations but also to create transparency in transactions. With regulations on electronic invoices changing frequently, business households need to update information promptly to avoid errors and legal risks.
In this article, Bizzi will provide you with the latest information on how to issue electronic invoices for business households. Bizzi will guide business households step by step to effectively carry out this process, helping businesses optimize the process, save time, and ensure legal compliance. Find out now!
Legal regulations on electronic invoices for business households
From July 1, 2022, according to the law, businesses, including business households, are required to switch to using electronic invoices. However, there are some specific exceptions.
Cases where electronic invoices are required:
According to Article 6 of Circular 78/2021/TT-BTC, there are three cases where business households must use electronic invoices:
- Business households and individuals pay taxes according to the declaration method: These businesses are required to use electronic invoices.
- Business households and individuals pay taxes according to the lump-sum method: If there is a request to use invoices, the tax authority will issue individual electronic invoices for each occurrence.
- Business households and individuals declare taxes each time they occur: If there is a request to use invoices, the tax authority will issue individual electronic invoices for each occurrence.
Cases where it is not mandatory to use electronic invoices:
Business households and individuals doing business in areas with difficult and especially difficult socio-economic conditions can use paper invoices from tax authorities for up to 12 months if they meet the following conditions:
- Do not conduct transactions with tax authorities by electronic means: These business households do not have the ability or conditions to conduct electronic transactions with tax authorities.
- No IT infrastructure: Lack of information technology infrastructure needed to deploy and use electronic invoices.
- No accounting software system: Not equipped with or using accounting software to support the creation and management of electronic invoices.
- No electronic invoicing software: Lack of specialized software to create and transmit electronic invoice data to buyers and tax authorities.
Within a maximum period of 12 months, the tax authority will have support solutions for businesses to gradually switch to using electronic invoices. The 12-month period is calculated differently depending on the time of establishment of the business.
Understanding and complying with regulations on electronic invoices not only helps businesses operate effectively but also ensures compliance with the law and avoids legal risks that may arise.
Form and time of issuing electronic invoices
Electronic invoices play an important role in financial management and tax compliance of business households. The choice of invoice form and the determination of the time of invoice issuance depends on the tax declaration method applied by the business household.
Form of electronic invoice
According to Decree 123/2020/ND-CP and Circular 78/2021/TT-BTC, business households can apply different forms of electronic invoices depending on their tax declaration method. Specifically:
Business households by declaration method
- Applicable subjects: Business households with revenue of 100 million VND/year or more or voluntarily declare taxes using this method.
- Form of electronic invoice used:
- Electronic invoices have tax authority codes.
- Electronic invoices with tax authority codes are generated from cash registers with data connections to tax authorities.
- Benefit:
- Simplify tax declaration and payment and transparency in transactions.
- Easily look up invoices and avoid errors in tax declaration.
Business households under the contract method
- Applicable subjects: Business households with revenue under 100 million VND/year or not eligible to apply the declaration method.
- Form of electronic invoice used:
- Electronic invoices with tax authority codes are issued for each transaction (at the request of the business household or customer).
- Benefit:
- Reduce complicated tax declarations because businesses only need to issue invoices when there are significant transactions.
- Flexible response to customer invoicing needs.
Business households declare tax each time it occurs.
- Applicable subjects: Business households with irregular revenue, not eligible to apply the declaration or contract method.
- Form of electronic invoice used:
- Electronic invoices have codes issued by tax authorities for each transaction.
- Benefit:
- Reduce the stress of managing monthly bills.
- Ensure tax compliance without maintaining complex accounting systems.
Time of electronic invoice issuance
The time of issuing electronic invoices plays an important role in determining the tax obligations of business households. According to Article 9 of Decree 123/2020/ND-CP, the time of issuing electronic invoices is determined as the time of transfer of ownership or right to use goods, completion of service provision between parties, regardless of whether payment has been received or not.
Business households by declaration method
- Invoice time: Immediately upon providing goods or services.
- For example:
- Electronic business: When a customer purchases a product, upon delivery, the business must issue an electronic invoice.
- Accounting service business: When completing financial reports for customers, even if fees are not collected immediately, invoices must still be issued.
Business households under the contract method
- Invoice time: When the business household has a request for each occurrence.
- For example: A small business providing motorbike repair services: Only when the customer requests an invoice, the business must issue an electronic invoice.
Business households declare tax each time it occurs.
- Invoice time: When the business household has a request for each occurrence.
- For example: Event organization businesses that do not operate regularly: Only when there is an event organization contract and the customer requests an invoice, will the business need to issue an electronic invoice.
Why is e-invoicing compliance important?
Applying the correct form and time of issuing electronic invoices not only helps businesses comply with legal regulations but also brings many benefits:
For business households
- Reduce legal risk: Avoid being fined for violating invoice regulations.
- Increase transparency: Helps build credibility with customers and partners.
- Convenience in financial management: Electronic invoices make tracking revenue easier.
For customers
- Protected rights: A valid invoice helps customers easily make complaints or warranty products/services.
- Easy tax deduction (for businesses): A legal electronic invoice is the basis for businesses to deduct input tax.
How to issue electronic invoices for business households
The process of issuing electronic invoices for business households depends on whether the business household issues invoices itself or requests the tax authority to issue invoices for each occurrence [17].
Business households pay taxes by declaration method
The process of issuing electronic invoices for business households depends on whether the business household issues invoices itself or requests the tax authority to issue invoices for each occurrence. Below are detailed instructions for business households paying taxes by the declaration method.
Step 1: Prepare the infrastructure
- Internet connection device: Business households need equipment such as computers, laptops or other devices capable of connecting to the internet to create and send electronic invoices.
- Email: An email address is required to receive notifications from tax authorities and e-invoice service providers.
Step 2: Choose electronic invoice service
- Learn and choose a reputable electronic invoice service provider:Business households should choose an electronic invoice service provider that fully meets the legal and technical criteria as prescribed.
- Register to use the supplier's electronic invoice software: After selecting a supplier, the business household registers to use electronic invoice software suitable for business needs.
- Register digital signature according to tax code of business household: Digital signature is a mandatory requirement to sign and authenticate electronic invoices. Business households need to register digital signature with licensed digital signature certification service providers.
Step 3: Register to use electronic invoices with the Tax Authority
- In case of business households in difficult and extremely difficult areas: Business households access the Electronic Invoice System Portal at the address https://hoadondientu.gdt.gov.vn/, select "Register to use electronic invoices" and fill in all information according to the system's instructions.
- Other cases: Business households access the registered electronic invoice software, select form "01/DKTĐ-HĐĐT" (Appendix IA Decree 123/2020/ND-CP) and fill in all registration information.
- Post-registration processing: After submitting the registration, the system will send a notification of acceptance or non-acceptance via email within 15 minutes. If accepted, the business household will receive an account and password to access the system. At the same time, the business household must stop using and destroy the purchased paper invoices (if any).
Step 4: Operate the software to export electronic invoices
- Add new e-invoice: On the "Invoice Catalog" page of the software, the business household selects the appropriate invoice template and adds a new one, then fills in all the detailed information of the invoice.
- Issue electronic invoices: After creating, select the created invoice and perform the issue function. The system will assign an invoice number and sign it. If the issue is successful, the system will notify; if there is an error, the system will notify for editing.
- Send electronic invoices to customers: After issuance, business households can send invoices to customers via email or other electronic methods depending on the agreement with the customer.
Compliance with the above procedures will help businesses that pay taxes by declaration method to issue electronic invoices effectively and legally.
Business households pay taxes by lump sum or each time they arise.
For business households paying taxes by lump sum method or by each occurrence, the issuance of electronic invoices is done through the tax authority for each occurrence. The specific process is as follows:
Step 1: Request for electronic invoice with tax authority code
Business households need to make an application for electronic invoices with codes according to form number 06/DN-PSDT (Appendix IA Decree 126/2020/ND-CP). This application is sent to the Tax Department managing the place where the business household operates (if it has a fixed location) or the place of residence/business registration (if it does not have a fixed location).
Step 2: Create electronic invoice
After receiving approval from the tax authority, the business household accesses the tax authority's electronic invoice system at . Here, the business household provides all the necessary information to create an electronic invoice.
Step 3: Get code from tax authority
After completing the invoice and paying all taxes, the tax authority will issue a code on the electronic invoice within the working day. The business household can then send the coded electronic invoice to the customer.
Compliance with the above procedures helps businesses that pay taxes by lump sum or by each occurrence to issue electronic invoices legally and effectively.
Notes when issuing electronic invoices for business households
Issuing electronic invoices for business households requires strict compliance with current legal regulations. Below are important notes that business households need to be aware of:
Invoice time
According to Article 9 of Decree 123/2020/ND-CP, the time of issuing electronic invoices is determined as follows:
- For the sale of goods: Is the time of transferring ownership or right to use goods to the buyer, regardless of whether payment has been collected or not.
- For service provision: Is the time of completion of service provision, regardless of whether payment has been collected or not.
Compliance with the correct time of invoice issuance helps avoid legal violations and ensures the validity of invoices.
Content of electronic invoice
According to Clause 5, Article 10 of Decree 123/2020/ND-CP, electronic invoices must fully include the following contents:
- Name, address, tax identification number of the seller.
- Name, address, tax code of the buyer (if the buyer has a tax code).
- Name of goods and services; unit of measure; quantity; unit price; total amount excluding tax; value added tax rate; total value added tax amount according to each tax rate; total value added tax amount; total payment amount.
It is mandatory to fill in all the information on the invoice completely and accurately to ensure its validity and avoid legal risks.
Business households are not allowed to issue value added tax (VAT) invoices.
According to current regulations, business households are not subject to declaring and paying value added tax according to the deduction method, so they are not allowed to issue value added tax invoices. Instead, business households use regular sales invoices.
Value added tax rate for business households
According to Circular 40/2021/TT-BTC, the value added tax rate for business households is prescribed as follows:
- 1%: For distribution and supply of goods.
- 2%: For services, construction does not include materials.
- 3%: For production, transportation, services associated with goods, construction with contracted materials.
- 5%: For other business activities.
Determining the correct tax rate helps businesses fulfill their tax obligations accurately and avoid unnecessary errors.
Use electronic invoices generated from cash registers
The General Department of Taxation is in the process of developing regulations mandating the use of electronic invoices generated from cash registers for businesses in the retail and F&B sectors. Currently, a number of subjects have been selected for pilot use. Widespread application will be implemented after the completion of regulations and technical infrastructure.
Choose a reputable e-invoice solution provider
Choosing a reputable e-invoice solution provider is an important factor in helping businesses deploy and manage invoices effectively. A reliable provider will ensure stable system operation, timely technical support and full compliance with legal regulations.
Businesses should consult and choose reputable e-invoice solution providers on the market, ensuring that they fully meet technical and legal criteria.
Compliance with regulations and choosing the right solution will help businesses operate effectively, transparently and sustainably in an increasingly modern business environment.
Choosing a reputable e-invoice provider is a key factor in helping businesses, especially business households, deploy and manage invoices effectively, comply with legal regulations and optimize business operations.
Bizzi – Electronic invoice solution for business households
Bizzi provides B-Invoice electronic invoice solution, built on a modern technology platform, fully meeting legal regulations such as Decree 123/2020/ND-CP and Circular 78/2021/TT-BTC.
This solution brings many benefits to businesses:
- Fully professional: Meets 100% electronic invoice business requirements according to regulations, helping businesses conduct transactions accurately and legally.
- Comprehensive management: Allows issuing, managing and reporting invoices anytime, anywhere, on any platform, helping to optimize business processes.
- High security: Applying multi-layer security technology, ensuring absolute safety and preventing invoice counterfeiting.
- Easy integration: Ability to integrate with management systems and sales software, helping to synchronize data and increase work efficiency.
Choosing a reputable e-invoice provider not only ensures the legality and safety of transactions but also directly affects the operational efficiency of the business. Reputable providers often have strong economic potential, technological capacity and many years of experience in the field, ensuring stable system operation, timely technical support and full compliance with legal regulations.
Link to register for a trial of Bizzi products: https://bizzi.vn/dang-ky-dung-thu/
Thus, compliance with regulations and mastery of How to issue electronic invoices for business households not only helps businesses operate transparently and legally, but also optimizes accounting processes and manages revenue more effectively. To ensure proper implementation, businesses need to regularly update the latest regulations, choose a reputable e-invoice service provider and store invoices in accordance with legal requirements. In this way, businesses can avoid unnecessary errors and create a solid foundation for sustainable development.
