Official release of Circular providing

guidance on Invoices for year 2011

After various rounds calling for comments on the new
regulations for invoicing, the Ministry of Finance has
officially promulgated Circular 153/2010/TT-BTC on 28
September 2010 (Circular 153), providing guidance on the
implementation of Decree 51/2010/ND-CP dated 14 May
2010 of the Government on invoicing requirements for sales
of goods and provision of services replacing Circular
120/2002/TT-BTC dated 30/12/2002. Following our tax
update on Decree 51/2010/ND-CP and draft Circular on
Invoices, we would like to brief you on the key contents in
such official Circular as follows:

VND 5 billion charter capital threshold for using self-

printed invoices

After many amendments, Circular 153 finally concluded that

companies, other than those located in industrial zones,
economic zones, export processing zones, high-tech zones,
having their charter capital at a threshold of VND5 billion can
use self-printed invoices.

Issuance and sale of invoices by tax authorities

Under Circular 153, tax authorities will only provide or sell

invoices to a limited group of entities, including non-
enterprises but having business activities, household families
and individuals doing business, small enterprises (who
employ less than 10 employees), enterprises located in
difficult and special difficult socio-economic areas.
Thus, entities which are not subject to the above group, requiring invoices shall not be permitted
to purchase invoices from tax authorities.

Compulsory items indicated on invoices

The compulsory items which should be included on the invoice are as follows: name, kind of
invoice, signature, date, name of goods or services… Invoices printed by orders must show name
and tax code of organizations engaging in printing. Nevertheless, there are some cases where
sellers’ seal/stamp and buyers' signature are not required, such as invoices for water, electricity,
banking services; where tax code of buyers and sellers’ stamp are unnecessary like invoices
issued at the supermarkets, etc.

Usage of invoices

Circular 153 has provided guidance on the usage of invoices where total lines of an invoice are
not enough to write all the list of goods and services, enterprises can select to: (i) issue several
separate invoices, or (ii) prepare many consecutive invoices of which the following invoice must
indicate the previous invoice number, or (iii) make separate listing sheet attached to the invoice.

In addition, the Circular also provides detailed regulations on management of invoices such as:
the settlement of invoices by mistake or with errors, or of invoices not continued to be used,
usage of illegitimate invoices, illegal usage of invoices, of damaged and lost invoices; and the
regulations on reporting invoice use, cases and procedures for invoice cancellation, etc.

Time for issuing invoices

Circular 153 states the timing date for issuing invoices in some particular cases as follows:

► For real estates business, infrastructure construction, building houses for sale, RE transfer
with collection of money under the project schedule or included in the contract, the date
of issue will be the day of payment as scheduled.
► For goods delivered over a period of time or service provided instages, each delivery or
handing over must be invoiced for corresponding volume and value of transferred goods
and services.
► Export invoice will be determined by exporter properly as mutually agreed among
relevant parties. Taxable revenue of exports will be determined upon the date of customs
clearance certified on the customs declaration.
► For banking services, stocks, the date of invoice shall be periodically made in accordance
with agreement entered by relevant parties with enclosure of statements, supporting
documents, but no later than the end of the month arising transactions.

Mandate to issue invoice

The seller is authorized to mandate a third party for issuing invoice which must include the full
name of the seller and chop its seal on the top left of invoice (except for invoices printed from

October 2010 Tax Update|Page 2

systems of mandatee or electronic invoices). The proxy must be made in writing by and between
both related parties.

Others

The Circular also provides some regulations related to the notice on invoice issuance in case of
changing address, changing the noticed contents; on the second issuance of invoices and
onwards; Branch using one sample of invoice with its Company, forms of writing signals to
identify invoices; process of inspection on invoices.

Transitional clause

Entities having purchased invoices or having invoices printed by orders or self-printed which
will not be used up to 31 December 2010 may register with the tax authorities for continuing to
use such invoices until Quarter I/2011. The deadline for registration submission shall be no later
than 20 January 2011. From 1 April 2011, the usage of invoices shall be subject to the new
regulations.

By 31 March 2011, enterprises which would have not yet used up such invoices will follow the
provision of Circular 153 for disposal of such unused invoices.

Enterprises wanting to use invoices pursuant to Circular 153 from 1 January 2011 will be
allowed to print, order for printing and release Notice on invoice issuance from 2010 as
prescribed.

October 2010 Tax Update|Page 3

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October 2010 Tax Update|Page 4