Updates on e-invoicing & important developments of law on tax administration Thursday, September 26 2019 PwC
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ABOUT US MS. PHUNG THI NGOC ANH Director Corporate Tax – PwC Vietnam Ngoc Anh has served a wide range Her professional experience has Ngoc Anh holds a Bachelor’s degree of clients including multinational been focused on advising clients on in International Business, Foreign companies and local companies in inbound investments into Vietnam, Trade University of Vietnam and is sectors such as automotive, energy operational tax compliance and a Member of the UK Association of & resources, FMCG, F&B, advisory services, M&A and Chartered Certified Accountants Ngoc Anh has more than manufacturing, trading and structuring services, effective cross- (ACCA) and Member of the 15 years experience in distribution, agricultural border transactions and structures, Vietnam Tax Consulting professional tax advisory businesses, financial services and and tax controversy services. Association. in Vietnam and the US. real estate. PwC
ABOUT US Mr. Thanh Vinh Nguyen Partner of Baker McKenzie Thanh Vinh Nguyen is a Partner in the Baker McKenzie Ho Chi Minh City office, where he leads the Tax and Customs practice group in Vietnam. Mr. Nguyen's practice areas Baker McKenzie is the largest international law firm in Vietnam and include tax and customs, trade and general commercial consistently rated among the best. We assist with the whole spectrum of matters. Mr. Nguyen practiced tax advisory work for two corporate and commercial transactions, bringing nearly three decades of international accounting firms for eight years and worked market experience to every deal aspect. We have helped facilitate meaningful in the compliance function of an international insurance legal reform and have shaped policy by participating in the drafting process of company. An expert in tax planning and law, Mr. Nguyen the Securities Law, Investment Law, Intellectual Property Law, Law on Credit has assisted clients with advice and structuring work as Institutions, Commercial Law, Competition Law, Land Law, Labor Code, tax well as contentious appeals with the tax authorities. Mr. laws and several other pieces of legislation. At the same time, we help clients Nguyen is an award winning practitioner, recently proactively manage emerging opportunities and risks. recognized by the International Tax Review in the categories of: Indirect Tax Leader (2017) and Tax Our in-depth local knowledge - coupled with far-reaching resources in 47 Controversy Leader (2017) as well as being ranked as a countries - enables us to create effective and innovative solutions tailored to Leading Lawyer for Taxation in Legal 500 Asia your business strategies. Drawing on integrated capabilities across practices Pacific (2017). and borders, we execute deals efficiently and with greater legal insight. Mr. Nguyen holds a Bachelor of Arts degree in English from the University of Ho Chi Minh City and an LL.B from the University of Law of Ho Chi Minh City. PwC
Morn rnin ing Brie riefin ing September 26, 2019 AGENDA 8:30am 10:30am 9:00am 9:10am Presentation, followed by Q&A Registration & Refreshment Welcome remarks Event Ends PwC
Requir irements on E-rela lated matters - E-commerce activities E-tax transactions E-invoices PwC
Imple Im lementatio ion of f e-in invoic icin ing New Law vs Decree 119/2018 Guidance on e-invoicing under the new law aligns with the guidance under the new decree on e-invoicing (i.e. Decree 119/2018). Guidance The provisions on e-invoice will take effect from 1 July 2022 However, Decree 119/2018 requires all taxpayers to apply e-invoices from 1 November 2020. This slippage in the implementation of e-invoicing and E - invoice further developments in this respect need to be closely monitored. Draft decree amending Decree 119/2018 will be submitted to the Effectiveness Government in January (or February) 2020. With or Without code of tax authorities Some other specific taxpayers can use e-invoices without code of tax authorities if certain conditions should be met. Form PwC
Practical issues that enterprises are facing regarding E-invoicing 1 Transition to e-invoice - manage the implementation and 5 How secure the data will be if it is kept in the server of the e- deployment of e-invoice system, e.g. technology invoice solution provider? infrastructure. 2 6 Receiving and storing e-invoices (e.g. e-format vs. paper If the buyer's e-signature is required on the e-invoice? If yes, converted e-invoice) what if the buyer do not have e-signature? 3 7 Date of 'making e-invoice' is different from the date of How to avoid duplicate claims in certain sectors, e.g. 'electronically signing e- invoice‘. How to deal with? insurance? 4 Long description: is billing attachment acceptable? PwC
Draft Cir ircula lar guid idin ing Decree 119/2018/ND-CP • • Using e-invoices with verification codes How to handle cases where invoices are is required for enterprises classified as wrongly issued after being granted a high tax risk, including enterprises which verification code, and guidance on the have in the past been penalized for tax issuance of amended e-invoices for trade evasion. discounts. • • Regarding the timing of e-invoice The transfer of e-invoice data to the tax issuance, the draft circular stipulates authorities, including guidance on the that for e-invoices without verification timing and type of data transfer. In codes, the timing of e-invoice issuance addition, sellers also need to upload will be the time the seller electronically invoices to their websites. signs the e-invoices, which contradicts • recent guidance in some rulings which Credit institutions, banks, and payment specify the date of the invoice intermediaries need to report banking transactions to the tax authorities if required PwC
Fin inal l Draft Cir Circula lar guid idin ing Decree 119/2018/ND-CP • The MoF has recently conducted a meeting on the final draft version of the Circular guiding the implementation of e-invoices, after gathering all comments on the draft version of the Circular. The official Circular is expected to be released soon. • Compared with the current draft version, some changes have been made, including the below: E-signature of the buyer is specifically mentioned as Specify cases which are considered as high risk enterprises not a compulsory item on e-invoices. whereby e-invoices with verification code are specified. Shorten the period that the enterprise is required to use e- More details on the required format of e- invoices with verification code from 2 years to only 1 year. invoices (i.e. xml. would be required). All detailed guidance on using electronic stamp are More guidance on transfer of data (invoices with removed verification or non-verification codes) to the GDT portal. PwC
New La Law on Tax Admin inis istratio ion Procedure and timeline ▪ Law No. 38/2019/QH14 adopted on 13 June for tax 2019 (“ New Law ”) declaration and ▪ payment The New Law comes into force from 1 July 2020 ▪ Provisions on e-invoice will come into force from 1 July 2022 New Transfer pricing Penalties and Law interest E- Commerce tax Tax dispute PwC
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