The issuance of invoices for internal transactions is a common concern for many businesses. In particular, for goods and services used for internal consumption, determining the obligation to issue invoices is essential to ensure compliance with the law.

According to Clause 1, Article 4 of Decree 123/2020/ND-CP, businesses are obligated to issue invoices when selling goods or providing services, including cases of internal consumption. However, there is a significant exception:

• Goods circulating internally for continued production: This case is exempt from the obligation to issue invoices.

So, in what other cases of internal consumption are businesses required to issue invoices?

• Goods and services used for promotion, advertising, samples: Even without direct payment, businesses must issue invoices for these activities.
• Goods and services used for giving, donating, exchanging, or paying salaries to employees: These are all forms of providing goods and services and must be accompanied by invoices.
• Exporting goods in the form of loans, lending, or returning goods: These activities are also subject to invoice issuance.

Note

• Invoice content: When issuing invoices, businesses must ensure that all information is complete as prescribed in Article 10 of Decree 123/2020/ND-CP.
• Electronic invoices: If the business uses electronic invoices, the data format must comply with the provisions of Article 12 of this Decree.

Conclusion 

Understanding the regulations on issuing invoices for internally consumed goods and services is crucial. Compliance with these regulations not only helps businesses avoid the risk of legal violations but also ensures transparency in business operations.

References

• Clause 1, Article 4 of Decree 123/2020/ND-CP
• Tax and accounting websites
• Tax forums and discussion groups