Update the latest electronic invoice cancellation form 2025

The VAT/electronic invoice cancellation record is an important document in the business of invoices and documents. Understanding the electronic invoice cancellation record helps accountants manage invoices and documents conveniently, ensuring compliance with legal regulations and avoiding risks.

This article will provide all relevant information as well as give an accurate electronic invoice cancellation form for businesses to use.

What is an electronic invoice cancellation record?

An electronic invoice/VAT cancellation record is a document created when an invoice has been issued but then needs to be cancelled for certain reasons.

The purpose of using the electronic invoice cancellation record is to record the cancellation of one or more invoices due to errors or no longer being valid, before canceling the electronic invoice; avoiding risks, disputes and complying with the law on invoices and documents.

In the cancellation minutes Electronic invoice, the seller and the buyer commit not to declare tax on the canceled invoice. Canceling an invoice means making the invoice no longer valid.

• See more articles about Value Added Tax Invoice here 

Distinguish between canceling an invoice and destroying an invoice 

Below is a clear distinction between “cancel invoice” and “destroy invoice”, helping you understand and apply the legal regulations correctly:

In short:

• Cancel invoice: Is to make an invoice (electronic or paper) no longer valid, usually applied to invoices with incorrect information or no longer in use. Canceled electronic invoices still exist on the information system and can be reviewed and looked up. Cancellation of invoices can occur many times.
• Invoice cancellation: Is the handling of unused paper invoices or incorrect invoices through physical destruction (tearing, burning, crushing). Invoice destruction only occurs when the invoice has expired according to accounting regulations. This action must ensure that the invoice cannot be recovered for reuse.

Because of that difference, the electronic invoice cancellation form will be strictly regulated in terms of content to ensure legality.

Distinguish between electronic invoice cancellation minutes and electronic invoice adjustment minutes 

Below is a comparison table and clear distinction between the electronic invoice cancellation minutes and electronic invoice adjustment minutes, helping businesses understand when to use which type to legally handle erroneous invoices:

When is it necessary to make a record of cancellation of electronic invoice?

You need to make a record of canceling an electronic invoice in cases where the invoice has been created but not used, or the invoice has errors and has not been sent to the buyer. Making a record is a mandatory requirement to legalize the cancellation process according to legal regulations.

Common cases requiring a cancellation record of an electronic invoice include:

• The buyer and seller have an agreement before issuing a replacement invoice for the erroneous invoice.
• Specific cases requiring the creation of an invoice cancellation record (applicable to electronic invoices with or without codes sent to buyers) as prescribed in Article 19, Decree 123/2020/ND-CP and Article 7 of Circular 78/2021/TT-BTC include:

– Tax code error.

– Error in the amount written on the invoice.

– Wrong tax rate, tax amount.

– Goods listed on the invoice are not of the correct specifications or quality.

Note: In case of incorrect buyer name or address, there is no need to cancel the invoice, just notify the error content according to Form 04/SS-HĐĐT.

• In case the seller issues an invoice when collecting money in advance or during the provision of services, and then cancels or terminates the provision of services. The seller cancels the issued electronic invoice and notifies the tax authority according to Form 04/SS-HDDT.
• Electronic invoices have been issued but not yet sent to the buyer. When errors are discovered, the invoice must be canceled and a new invoice created.
• If an electronic invoice has been sent but tax has not been declared, if an error is detected, a written agreement between the two parties must be drawn up to cancel the invoice, then the seller will issue a new invoice.
• In case of wrong or duplicate/redundant invoices, the business needs to make a record to eliminate invalid invoices.
• If an electronic invoice is no longer valid due to expiration or system shutdown, the seller must coordinate with the tax authority or invoice provider to cancel it according to regulations.
• There are also cases such as returned goods, canceled contracts, or according to legal regulations/tax authorities.

The electronic invoice cancellation form does not apply if the invoice has been sent to the customer and/or tax has been declared. In that case, you must process it by:

• Create adjustment invoice or
• Create a replacement invoice (according to Circular 78/2021/TT-BTC).

The minutes of cancellation of electronic invoices must still be stored on the electronic system for later comparison.

Sample of electronic invoice cancellation form

According to current regulations, there is no common form of electronic invoice or VAT cancellation minutes. The form of minutes will depend on each specific case and business unit.

However, the main content of an electronic invoice cancellation record usually includes:

• Title: Minutes of cancellation of VAT/electronic invoice.
• Information of the parties: Name, address, tax identification number of seller and buyer. Representative and position.
• Canceled invoice information: Invoice number, symbol, invoice date, total invoice value (if any).
• Reason for canceling invoice: Explain the reason clearly. For example: Exported wrong name of goods or services.
• Replacement invoice information (if applicable): Invoice number, symbol, date of replacement invoice.
• Date of record: Date established.
• Other comments: (If any).
• Signature and Seal: Signatures and seals of representatives of the parties involved in the transaction.

>> Free download of electronic invoice cancellation form here

Procedure for making a record of cancellation of electronic invoice 

Below is the procedure for making a record of canceling an electronic invoice in accordance with legal regulations (Circular 78/2021/TT-BTC and Decree 123/2020/ND-CP), helping businesses handle errors in a valid, quick and easy-to-manage manner:

• Step 1: Determine the reason for cancellation: Clearly identify the reason for canceling the invoice. For example: The electronic invoice has incorrect information or has not been sent to the buyer/has not been declared for tax.
• Step 2: Agreement between the parties involved: If the invoice has been sent to the buyer, cancellation requires the consent of both the seller and the buyer.
• Step 3: Make a cancellation record: Draft minutes according to the form, ensure all necessary information is included and confirmed accurately by all parties.
• Step 4: Cancel the invoice according to regulations: Cancel invoices on the electronic invoice software system, ensuring that the cancellation process history is recorded.
• Step 5: Update information: Update information on accounting software and electronic invoice system (if any).
• Step 6: Notify tax authorities (if necessary): In some cases (such as unused paper invoices), it is necessary to notify the tax authority about the cancellation of the invoice. For electronic invoices with important information errors (tax code, amount, tax rate, goods), the seller must notify the tax authority according to Form No. 04/SS-HDDT.
• Step 7: Create a replacement invoice (if the transaction still goes through): The seller shall issue a new invoice to replace the canceled invoice, in accordance with regulations and declare taxes fully.
• Step 8: Storage: Keep the invoice cancellation record together with the original invoice (or related documents for electronic invoices) for inspection and audit purposes. The documents must be kept for at least 10 years.

Notes when making a record of canceling electronic invoices/VAT

Below are important notes when making a record of canceling an electronic invoice/VAT, helping businesses ensure compliance with regulations and avoid legal risks:

• Accurate and complete information: Make sure all information on the minutes is accurate and clear to avoid errors in tax declarations. This is important for accurate financial management, avoiding incorrect recording of revenue or expenses.
• Guaranteed processing time: Invoices should be canceled and a record made immediately upon discovering errors or requesting cancellation. Timely handling avoids affecting tax declarations and financial reports, helping to manage cash flow and budget more effectively.
• Signature and Seal: The minutes must be signed by the representative of the invoice issuer, and in some cases, the signatures/seals of both the buyer and seller. Electronic minutes require a legal electronic signature. This ensures legality and transparency, minimizing the risk of financial disputes.
• Compliance with legal regulations: Invoice cancellation must strictly comply with Decree 123/2020/ND-CP and Circular 78/2021/TT-BTC. Compliance with regulations helps businesses avoid administrative penalties, which is an important aspect of business cost management (minimizing unnecessary expenses due to violations).
• Careful storage procedure: Store the cancellation record along with the original invoice/related documents scientifically. Keeping complete records helps serve the inspection and audit work of the tax authorities, ensuring transparency and avoiding financial risks related to tax audits. This also supports the review of transactions, part of overall financial and cost management.
• Notify tax authorities (if required): Understand clearly which cases need to notify the tax authority of invoice cancellation to follow the correct procedure.
• Time limit for making minutes: Compliance with the deadline for making a record depends on the type of invoice (unused paper invoices are destroyed within 30 days of notice; electronic invoices are made a record as soon as an error is detected).

Quick steps to cancel invoices on Bizzi software 

If you use Bizzi's automated invoice processing tool you can easily:

• Create invoice cancellation records right on the system, linked to the original electronic invoice.
• Automatically store and create complete records for tax/accounting audits.
• Send confirmation email to customer.

Step 1: “Process invoices” >> “Report incorrect invoices” >> “Create new”

On the Menu bar, select Incorrect invoice notification

On the B-Invoice Menu bar, select Invoice Error 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 the incorrect invoice notification transactions that you want to edit and enter the "reason for notification of errors". After filling in all the information, click "Save"

Once completed edit electronic invoice, you can perform other operations including: view, edit, delete notifications (if any). At the same time, the system will update the status of notifications sent to the Tax Authority on the screen of notifications for processing erroneous 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”

On the Sales Invoice list screen on the Bizzi system, click "Cancel invoice"

– Enter “Reason for cancellation” then click “Cancel invoice” button.

– 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 “Process invoices” >> “Cancel invoices” >> “Create minutes”.

Next, enter the invoice number, check the information and sign electronically. Then click “Print” to download the invoice cancellation file. Enter the invoice cancellation record number, then click “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.

Conclude

Understanding and correctly implementing the process of preparing an electronic invoice cancellation record, as well as clearly distinguishing it from an adjustment record, is a key factor in ensuring the accuracy of financial data. This not only helps businesses comply with the law on invoices and documents, but also contributes significantly to effective cost management by avoiding unnecessary fines due to errors or violations of regulations. 

Financial automation platforms like Bizzi, which focus on invoice processing and expense management, can help businesses improve the efficiency and accuracy of their financial processes, including handling cases of invoice errors that need to be canceled or adjusted. Schedule a consultation and try Bizzi solution to optimize time, maximize productivity and financial management efficiency for your business!

• Link to register for a trial of Bizzi products: https://bizzi.vn/dang-ky-dung-thu/
• Schedule a demo: https://bizzi.vn/dat-lich-demo/

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Frequently asked questions during the process of creating electronic invoice cancellation records

• Is there a penalty for mistakenly canceling an electronic invoice? There may be an administrative penalty if it is not done in accordance with regulations, especially if it affects tax declaration.
• Can a declared tax invoice be cancelled? No, it can only be adjusted or replaced.
• How to notify the tax authority of invoice cancellation? Make a record (if necessary) and send the invoice cancellation notice (Form TB03/AC) via the electronic tax declaration system. For electronic invoices with significant errors, notify Form 04/SS-HĐĐT.
• How long does it take to cancel an invoice? Depends on the type of invoice (paper not used within 30 days of notification; electronic as soon as an error is detected).
• Does every case of invoice cancellation require a committee? No, only cases of cancellation of large quantities of unused paper invoices require a supervisory committee.
• Can the invoice cancellation minutes be made in electronic form? Yes, with the legal electronic signatures of the parties.