Decree 123/2020/ND-CP provides detailed regulations on invoices and supporting documents, including regulations on the timing of issuing invoices. Accurately determining the time of invoice issuance is crucial to ensure compliance with the law and the accuracy of accounting records. This article will focus on the regulations on the timing of issuing invoices for goods sales according to Clause 1, Article 9 of the Decree.

1. Timing of issuing invoices for goods sales 

According to Clause 1, Article 9 of Decree 123/2020/ND-CP, the time of issuing an invoice for goods sales is the time of transfer of ownership or the right to use the goods to the buyer, regardless of whether the payment has been received or not. This means that:

• An invoice must be issued as soon as the goods are delivered to the buyer, whether it is direct delivery, delivery through a shipping unit, or delivery at the seller’s warehouse.
• The receipt of payment is not a prerequisite for issuing an invoice. Even if the buyer has not made a full payment or has not made a payment, the business must still issue an invoice to record the transaction.
• This regulation applies to all forms of sales, including direct sales, online sales, installment sales, etc.

2. Cases with a sales contract 

When a business has signed a sales contract, the time of issuing an invoice still follows the general regulation, which is the time of goods transfer. The signing of the contract only determines the terms of the transaction between the two parties, and does not affect the time of issuing the invoice. 

The business does not have to issue an invoice in case of receiving an advance payment. The advance payment is only a partial payment in advance, not the transfer of ownership or the right to use the goods. The invoice will be issued when the goods have been delivered and the conditions in the contract have been fully met.

3. Significance of complying with regulations

• Ensure the accuracy of accounting records: Issuing invoices at the right time helps businesses record revenue and expenses accurately, serving the purpose of preparing financial statements.
• Avoid risks during inspections: Tax authorities can inspect a business’s invoice issuance at any time. Compliance with regulations will help businesses avoid being fined or penalized for violations.
• Effective debt management: Timely issuance of invoices helps businesses track customer debts accurately, thereby having effective debt collection measures.

4. Conclusion 

The timing of issuing invoices is an important issue that businesses need to understand to ensure compliance with the law and effective business management. By clearly understanding the regulations in Decree 123/2020/ND-CP, businesses can build a scientific and accurate invoice issuance process, contributing to the sustainable development of the business.

5. References

• Clause 1, Article 9 of Decree 123/2020/ND-CP
• Tax and accounting websites
• Tax forums and discussion groups