Providing sample products to customers to promote products is a common business activity of many businesses. However, not everyone is aware of the legal regulations regarding invoicing in such cases. According to Decree 123/2020/ND-CP of the Government, the provision of sample products also falls under the category of transactions that require invoicing. This article will help you better understand this regulation and the importance of legal compliance.

What does Decree 123/2020/ND-CP stipulate regarding invoicing for sample products?

Clause 1, Article 4 of Decree 123/2020/ND-CP clearly states: “When selling goods or providing services, the seller must issue an invoice to the buyer (including cases of goods or services used for promotion, advertising, samples; goods or services used for donation, gift, exchange, payment in lieu of wages for employees, and internal consumption (except for goods circulating internally for continued production). This means that regardless of the purpose of using the goods, even when they are samples provided to customers for trial, businesses are still obligated to issue an invoice.

Why is it necessary to issue an invoice when providing sample products?

• Compliance with the law: Issuing invoices is a mandatory requirement under the law. Non-compliance can lead to administrative penalties.
• Revenue management: Invoices are important accounting documents that help businesses manage their revenue accurately and transparently.
• Protecting business interests: Invoices serve as proof of transactions, helping businesses protect their rights in case of disputes.

Notes on invoicing for sample products

• Invoice content: Invoices must include all required information as stipulated by law, including: product name, quantity, unit price, total amount, buyer’s name, address, tax code, etc.
• Invoice form: Businesses can choose to use paper invoices or electronic invoices depending on their scale and needs.
• Invoice issuance time: Invoices must be issued immediately upon delivery of the goods to the customer.

Conclusion

Providing sample products to customers is a normal business activity, and businesses can fully carry out this practice. However, to ensure compliance with the law and effective business management, businesses need to be aware of the obligation to issue invoices when providing sample products, as stipulated in Decree 123/2020/ND-CP.

References

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