Many people when starting to set up an individual business household often wonder if the household business needs an input invoice? When is an input invoice required? To answer the above questions, today, LSX Lawfirm will give you an article about “Do household businesses in Vietnam need an input invoice?“, as follows:
Legal grounds
Circular 78/2014/TT-BTC
What is the input invoice?
When conducting the purchase and sale of goods, providing services, individual business households in particular, and business units, in general, need to have valid invoices or documents to prove the origin and origin of goods. , service. This helps to avoid fraud and loss of tax revenue to the State Budget.
So, Input invoices are invoices that use for the purpose of paying for services or purchasing goods, supplies, raw materials, etc.
According to the law, there are currently the following types of input invoices:
+ Value-added invoices;
This is the type of invoice that individuals and organizations when trading goods or providing services in the country, conducting domestic and foreign transportation, exporting or exporting to a non-tariff zone, make declarations about the nature of the goods and services. value-added tax under the deduction method.
+ Sales invoice;
This is the type of invoice that individuals and organizations when trading in goods, providing domestic services, exporting or exporting goods or services to a non-tariff zone, or trading goods in a non-tariff zone, pay Currently declaring and calculating value-added tax by the direct method.
+ Some other types of input invoices such as toll receipts, money stamps, ticket cards, freight receipts, etc.
Accordingly, individual business households, after importing goods and services, when exporting goods from storage, need to have the following necessary documents of input invoices as a basis for settlement. Related jobs such as:
– Firstly, Commodity trading contracts.
– Secondly, Export and import slips for goods sold or purchased.
– Thirdly, Receipts and receipts record the number of transactions with customers with different types of purchased goods.
– Finally, the Minutes of liquidation of the sale and purchase contract.
Does the business household need an input invoice?
Currently, many individual business households, due to their small scale, are still weak in managing the import/export of goods and services, so they have not really strictly controlled input and output invoices. This situation has led to many mistakes in declarations, even administrative violations of unnecessary invoices.
According to the law, individual business households, when selling goods or providing services, will not licensed to use value-added invoices, only use sales invoices (if registered). If cannot issue an output value-added invoice but only a sales invoice.
However, input invoices do not limit the type of invoices used when importing goods and services for individual business households, so it is based on current legal regulations, depending on each case when importing and purchasing goods. goods, business households can have input invoices.
The above regulation means that, when importing input goods and services, individual business households required to have input invoices to prove the origin and origin of goods, and at the same time store them in accordance with regulations. provided for by law, except for certain exceptions provided for by law.
What cases do not need input invoices?
Firstly, Individual business households do not need an input invoice but will have to make a list of purchased goods and services (with form 01/TNDN as prescribed in Circular 78/2014/TT-BTC). in case of purchase of goods with agricultural and aquatic products, directly sold by fishermen, nurturers or producers; It is a handicraft product made of natural materials…
Thus, if the purchased goods do not fall into the above cases, the business household when importing/buying goods and services may need an input invoice to be valid for this number of goods and services when doing business. business.
Secondly, When selling goods and services with a payment value of less than 200,000 VND, there is no need to issue an invoice, unless the person importing/buying goods or services requires making and delivering invoices as prescribed law.
Therefore, unless there is a need for an individual business household; the import of goods and services for business with a value of less than 200,000 VND by other business individuals or organizations does not require an input invoice.
In addition
Excluding the above two cases, the individual business household buying or importing goods; and services required to have an invoice.
In case the individual business household does not have an input invoice when the competent authority checks the goods for origin, origin, and quality; but the business household cannot prove the origin of the goods; it may find. Administrative Violations.
Therefore, in order not to sanction for administrative violations; individual business households must prove the origin of goods while importing or purchasing goods.
Proof can show by individual business households receiving invoices (value-added invoices or sales invoices – direct invoices) to pay; transaction proofs (for example, income statement). purchase goods, services, etc.).
When being inspect, individual business households can present payment invoices or proof of transactions; when purchasing goods to the management agency in lieu of certificates of origin.
No input bill is penalized like?
Clause 5, Article 24 of Decree 125/2020/ND-CP stipulates:
“A fine of between VND 10 and 20 million shall impose for failure to issue invoices; when selling goods and services with a payment value of VND 200,000 or more to buyers as prescribed; Along with being sanctioned, business organizations and individuals must issue invoices and deliver them to buyers.“.
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Above is LSX Lawfirm’s advice on the content of the problem “Do household businesses in Vietnam need an input invoice?“. And all the above knowledge to use in work and life. If you have any questions and need more advice and help, please contact the hotline for the reception. Lawyer X is a place that provides reputable and fast business services at reasonable prices. Customers will be extremely satisfied when using our services.
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Related questions
Required documents with input invoices:
– Firstly, Contract for purchase and sale of goods: If the contract does not specify a list of sold goods, an appendix must be added with details of the list of purchased goods.
– Secondly, Warehouse receipt with purchased goods.
– Thirdly, Receipts and receipts record the number of transactions with customers for different types of purchased goods. – Minutes of liquidation of the sale and purchase contract.
Business households owned by an individual or a group of individuals who are Vietnamese citizens who are full 18 years old, have full civil act capacity, or are owned by a household, may only register their business at one location, employing less than ten employees and taking responsibility with all their assets for business activities (Article 66 Decree No. 78/2015/ND-CP dated September 14, 2015, of the Government on registration business registration).
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