In the process of issuing electronic invoices, errors are inevitable. To support accountants in handling them in accordance with regulations, the following article of Bizzi will guide you in detail how to cancel electronic invoice According to Circular 78 - from conditions of application, sample minutes to implementation process - helps businesses ensure legal compliance and limit risks.
What is an electronic invoice?
Electronic invoice (E-invoice) is a type of accounting document that is created, sent, received, stored and managed electronically in accordance with the provisions of law. E-invoice has the same legal value as paper invoice if it meets all conditions of authenticity and information integrity.
In which cases should an electronic invoice be canceled?
According to regulations, electronic invoices need to be canceled in the following cases:
- An invoice has been created but not yet sent to the buyer and an error is discovered. In this case, the seller is allowed to cancel the invoice and create new invoice.
- The invoice has been sent to the buyer but contains errors (wrong name, address, tax code, amount, goods content, etc.) and cannot be adjusted by creating a replacement invoice or an adjustment invoice.
- Tax authorities request to cancel invoices due to invalid invoices. tax compliance.
- Enterprises cease operations, dissolve or have their tax codes revoked, resulting in the need to cancel unused invoices.
How to cancel incorrect electronic invoices according to Circular 78
To perform cancel electronic invoice according to Circular 78, businesses/taxpayers need to follow the following 4 steps:
Step 1: Make a record of invoice cancellation
If the invoice has been sent to the customer, it is necessary to make a Minutes of Invoice Cancellation with confirmation from both the seller and the buyer. The content of the minutes includes:
- Invoice number, invoice symbol, invoice date.
- Reason for canceling invoice.
- Commitment of both parties not to use canceled invoices.
In case the invoice has not been sent to the buyer, the business can make a cancellation record without the customer's consent.
Step 2: Cancel the electronic invoice on the software
- Access to electronic invoice software businesses are using (B-Invoice, MISA, VNPT, Viettel, BKAV, Thai Son, etc.).
- Select the invoice to cancel, enter the reason for canceling the electronic invoice and perform the cancellation operation.
- Export invoice cancellation report for internal storage.
*Note: The software must ensure that the invoice cancellation history is kept for tax audit purposes.
Step 3: Notify the tax authority of the cancellation of the electronic invoice
If the invoice falls under the case of needing to be notified to the tax authority (according to Article 29, Decree 123/2020/ND-CP), the enterprise needs to send a Notice of Invoice Cancellation (Form TB03/AC).
Documents sent to tax authorities include:
- Invoice cancellation form
- Invoice cancellation notice (Form TB03/AC)
- Report on invoice usage (if any)
How to apply:
- Submit via the portal of General Department of Taxation of Vietnam or electronic declaration software.
- In special cases, you can submit directly to the Tax Department.
Step 4: Store the electronic invoice cancellation records
After completing the invoice cancellation, the business needs to fully store:
- Invoice cancellation form
- Notice of cancellation of electronic invoice
- Confirmation of tax authority (if any)
Minimum retention period: 10 years according to accounting and tax regulations.
Important notes when canceling electronic invoices
- Once canceled, electronic invoices cannot be restored, so check carefully before doing so.
- Canceled invoices may not be used for tax declaration or accounting purposes.
- If the invoice has an error but does not need to be canceled, it can be alternative billing or adjust instead of cancel.
- It is necessary to cancel invoices according to the correct procedure to avoid being penalized for administrative violations in the field of tax.
Penalty level for canceling electronic invoices in violation of regulations
According to Decree 125/2020/ND-CPIf a business cancels an invoice in violation of regulations, it may be subject to the following penalties:
- Failure to cancel invoices within the prescribed time limit: Fine from 4,000,000 - 8,000,000 VND if invoices are not canceled within the time limit required by the tax authority or when the business ceases operations.
- Failure to make a record of invoice cancellation when necessary: Fine from 2,000,000 - 4,000,000 VND if there is no record of invoice cancellation in accordance with regulations when canceling an invoice due to error.
- Continuing to use invoices that have been decided to be canceled: Fine from 20,000,000 - 50,000,000 VND
- Failure to report invoice cancellation to tax authorities (if required): Fine from 6,000,000 - 18,000,000 VND
Tips to avoid violations when canceling electronic invoices
- Check carefully before creating an invoice to avoid errors and limit cancellations.
- Cancel invoices according to procedures, complete invoice cancellation records.
- Monitor invoice cancellation deadlines and notify tax authorities when necessary.
- Use reputable electronic invoice software to avoid system errors or data loss when canceling invoices.
Instruct Procedures for canceling issued electronic invoices with B-Invoice
When using B-Invoice software, customers will perform the operation of Canceling their unit's invoice.
- Step 1: “Process invoices” >> “Report incorrect invoices” >> “Create new”
On the Menu bar, select Incorrect invoice notification
– Search for Invoices that need error notification
On this interface, the system will display a list of invoices that need to be notified of incorrect invoices according to the search criteria. Next, you select Invoice error notification procedures want to edit and import “error notification reason”After filling in all the information, click "Save"
Once completed edit electronic invoice, you can perform other tasks including: View, edit, delete notifications (if any)At the same time, the system will update the status of the notification sent to the Tax Authority on the notification screen. Handling of incorrect invoices.
- Step 2: Cancel invoice
After the notification of the incorrect invoice is accepted by the Tax Authority, the customer can proceed to cancel the invoice on the software.
Method 1: On the Sales Invoice list screen, click "Cancel invoice"
– Enter “Reason for cancellation” then press the button “Cancel invoice”.
Method 2: On the Menu bar, select “Process invoices”, then select “Cancel invoices”, then click “Create new”.
- Step 3: Make a record of invoice cancellation between the seller and the buyer
On the Menu bar, select the item “Process invoice” >> “Cancel invoice” >> "Make a record".
Next, you enter Minutes number, check the information and execute electronic signature. Then press "Print" to download the Invoice Cancellation Record file.
Save the minutes in pdf format and sign offline between the seller and the buyer, or sign online between the seller and the buyer. Finally, both parties save the minutes as a basis for canceling the invoice.
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