ABSTRACT:
According to accounting standards, accounting systems and accounting textbooks present cases related to goods and invoices. For example, goods and invoices return together; goods delivered first, invoices received later; goods shipped later, but invoices received first; goods sold directly without going to the warehouse, etc. There are many situations that goods are delivered before the invoices received, even though the date of purchase invoices is earlier than the date of goods stored into the warehouse and the date of sales invoices. These cases cause many difficulties for accountants in handling and accounting. This article is to present how to distinguish and handle the above-mentioned cases.
Keywords: Goods, invoices, accounting, risks, wrong time.
1. Introduction
When the enterprises issue VAT invoices, they will have to record the prices of goods that used to calculate value-added tax (VAT) and corporate income tax (CIT). However, enterprises are not yet collected money from customers, so they spend their own money to pay CIT first, then collect the money of customers later. Hence, many suppliers wait until they receive payment from customers; afterward, they issue invoices, therefore, pushing customers into the case of purchase invoices reflecting incorrect date. This situation has happened with many construction enterprises. Companies construct buildings but haven't received advance payment from investors yet; therefore, they do not have money to pay the supplier, resulting in the supplier not invoicing. Until the project is accepted and handed over, the company will receive the investor's money; then they pay the supplier. At this time, the supplier will issue an invoice, and the date of the purchase invoice will be later than the date on the acceptance record.
In the second situation, the accountants want to balance the expenses when their enterprises buy the goods. At that time, the accountants cannot control the cost. They will only balance and get more costs by purchasing additional invoices at the end of financial year. But the suppliers cannot issue these additional invoices at the time as expected. Therefore, enterprises fall into the case that the purchase invoice reflects wrong time.
Another situation, due to geographical distance or objective reasons, businesses have purchase invoices after receiving goods or after issuing sale invoices. However, the date of the purchase invoice is still the same as the date of the warehousing goods.
How are the three situations similar and different? How to handle them?
2. The difference of goods receiving before invoices, the date of purchase invoice after the date of warehousing goods, or after the date of selling invoice
The first two situations are the date of the purchase invoice is recorded after the date of goods storage and the date of the sale invoice. The third situation is that the goods are delivered sooner than the invoice, but the date of the purchase invoice is still the same as the date of receipt of the goods.
2.1. The similaries
2.1.1. The time of invoice delivery
These two cases are similar time receiving the invoice; more specifically, the goods are delivered without an invoice.
2.1.2 The recording method
When enterprises buy goods with no VAT invoices from the suppliers, the accountants still make the warehousing procedures but do not record and declare purchase VAT. Until receiving the invoice, they will record for the additional VAT of the purchase invoice. The accounting steps are specifically as following:
- At the date of receiving the goods without invoices:
The accountants make the warehousing notes according to the actual quantity of imported goods and save them in the file "Goods without invoices”.
- In that month, when the invoices are received, the account based on the invoice to record:
Debit account 152, 153, 156: The price of buying goods (open details) (Purchase price without VAT)
Debit account 1331: VAT is deducted on the goods and services (if deducted)
Credit account 111, 112, 331…: The total payment value.
Note: If the purchase VAT is not deducted, the value of inventory includes the purchase VAT.
- At the end of the month, if there is no invoice, the account records the book according to the provisional price:
Debit account 152 (153,156): The number of import x the provisional price
Credit account 111 (112, 113): The number of import x the provisional price
- Next month, when the invoice arrives: The accountant will base on the invoices to adjust the price on the invoice (actual price) according to the difference between the actual price and the provisional price:
a) If the purchase price = The provisional price:
Debit account 133: According to the tax amount on the invoice
Credit account 111, 112, 331: The purchase quantity x the purchase price x tax rate (%)
b) If the purchase price > The provisional price:
- Reflecting the tax
Debit account 133:
Credit account 111, 112, 331: the purchase quantity x the purchase price x tax rate (%)
- Adjusting the increase
Debit account 152, 156: Quantity x (The purchase price - The provisional price)
Credit account 111, 112, 331: the purchase quantity x (The purchase price - The provisional price)
c) If the purchase price < The provisional price:
- Reflecting the tax
Debit account 133:
Credit account 111, 112, 331: the purchase quantity x the purchase price x tax rate (%)
- Adjusting the decrease
Debit account 111, 112, 331: Quantity x (The provisional price - The purchase price)
Credit account 152,156: Quantity x (The provisional price - The purchase price)
Note: With enterprises calculating VAT following the direct method or the objects do not calculate to VAT, when adjusting the provisional price, accountants record it according to the total payment price of goods (including VAT)
2.2. The differences
2.2.1. The date on the purchase invoice
For the case, goods delivering before the invoices: The same day of the warehousing goods, before the time of issuing the sale invoice.
For the case, the date of buying invoice received after the date of warehousing goods and the date of sale invoices: After the date of warehousing goods, after the time of issuing the sale invoice.
2.2.2. The treatment
2.2.2.1. For the case of goods delivering before the invoices
* Enterprises need to prepare a set of documents including:
- Delivery bill of the seller (coinciding with the date on the invoice)
- Warehousing bill of the seller (coinciding with the date on the invoice)
- Commodity delivery report (coinciding with the date on the invoice)
- Economic contracts
- VAT invoice
- Payment documents according to the prescription of law (before the payment deadline prescribed in the economic contract, or contract annex)
* Declaring tax
According to Clause 8, Article 14, Circular 219/2013/TT-BTC guiding the VAT law, there is no time limit for declaring purchase invoices. Enterprises will normally declare before tax institutions or authorization institutions announce tax examination and inspection decisions at taxpayers' offices.
* Legal risks
There is no legal risk for both the seller and the buyer.
2.2.2.2. In case, the date of the purchase invoice is recorded after the date of warehousing and sale invoice
* Enterprises need to prepare a set of documents including:
- Delivery bill of the seller (coinciding with the delivery date)
- Warehousing bill of the buyer (coinciding with the delivery date)
- Commodity delivery report (coinciding with the delivery date)
- Economic contracts
- VAT invoice
- Payment documents according to the prescription of law (before the payment deadline prescribed in the economic contract, or contract annex)
Thus, the set of documents is similar to the case in which the goods are forwarded to the invoice, but the date of delivery bill from the seller, warehousing bill of the buyer, and commodity delivery report must coincide with the delivery date.
* Declaring tax
Similar to the case of goods delivering before on the invoices, according to Clause 8, Article 14, Circular 219/2013/TT-BTC guiding the VAT law, there is no time limit for declaring purchase invoices. Enterprises will normally declare before tax institutions or authorization institutions announce tax examination and inspection decisions at taxpayers' offices.
* Legal risks
For the buyer:
- VAT: Is the purchase tax deductible?
According to Article 15 of Circular 219/2013/TT-BTC "Conditions for deduction of value-added purchase tax", if the purchase invoices have fully deductive condition according to the law, the buyers have to declare and deduct and refund purchase tax.
- Corporate income tax: Are expenses included in deductible expenses?
Under Article 4 of Circular 96/2015/TT-BTC (Amending Circular 78/2014/TT-BTC) “Expenses are deductible and not deductible when determining taxable income”, when enterprises receive the supplier’s bill, that expenses is included in deducted costs. There is no rule about the situation that, if the invoice date is different from the warehousing date, determining the corporate income tax excluded the deductible expenses.
For sellers
- Making the voices not on time
Under Point a, Clause 2, Article 16, Circular 39/2014/TT-BTC "Making an invoice" and Point a, Clause 3, Article 11, Circular 10/2014/TT-BTC "Violation of regulations about using invoices when selling goods and services”, if making the invoices is not on time, but this does not lead to delay the tax liability performance, and there are no extenuating circumstances, the company will be fined 4 million VND. If the invoice is not issued at the right time and leads to delay the tax liability performance, the firm will be fined from VND 4 million to VND 8 million.
For example, Company New Star delivers goods to customers on March 1, 2019 (based on Company New Star's delivery bill), but on March 3, 2019, Company New Star issues invoices and send to customers. Making the above invoice is not the right time, but Company New Star has declared and paid tax in the tax period of March 2019, hence Company New Star is fined at VND 4.000.000 (with no extenuating circumstances).
A fine from VND 4.000.000 to VND 8.000.000 shall be imposed on other firms’ acts that making invoices are not on time.
=> Accordingly, making the invoice at the wrong time, but it does not lead to delay in performing tax obligations and no extenuating circumstances; the firms will be fined 4 million VND. If the invoice is not issued at the right time and leads to delay performance of tax liability, the punishment level is from 4 million to 8 million VND.
- Time of VAT determination
Under Clause 1, Article 8 of Circular 219/2014/TT-BTC “Time of VAT determination”, when entrepreneurs deliver goods to customers, the seller must record to determine the output VAT. However, the accountants usually only confirm the output VAT when the VAT invoice is issued. In this case, the seller will probably be subject to retrospective collection and punishment for late payment of VAT if the situation simultaneously satisfy:
The date of delivery and making invoices is different from the period of VAT declaration, and accountants are not recognized the output VAT amount when it is calculated back into the actual declaration period of delivering goods if it leads to an increase in the payable tax amount.
Example: Company Supper Star exports a batch of goods valued 100 million and a VAT of 10% on February 5, 2019. On April 3, 2019, Company Supper Star issue an invoice for this batch. Company Supper Star declares VAT quarterly, and at the VAT form in Quarter I/2019, Company Supper Star is also allowed to deduct 2 million VND.
According to the above example, following the regulations, on February 5, 2019, when exporting the lot, the accountant must issue an invoice, and record the VAT of 10 million, and then records on the tax declaration.
VAT of the first quarter of 2019 will no longer be deducted 2 million; the firm will have to pay 8 million tax. However, the accountant did not record and waited until April 3, 2019, to issue the invoice and record the output VAT of 10 million and declare it in the tax period of the second quarter of 2019. When the tax authorities check, the tax authorities will request to calculate the output tax of 10 million in the tax period of the first quarter of 2019, resulting in arrears of the output VAT amount of 8 million, and a late payment penalty = 8 million x 0.05% x the number of late payment days.
- Time of determining revenue
Under Article 3, Circular 96/2015/TT-BTC amending Clause 2, Article 5, Circular 96/2015 / TT-BTC "Time of determining revenue for calculating taxable income", when delivering goods to customers, the sellers must record to determine the revenue for calculating corporate income tax. But the accountant usually only determines the revenue for calculating corporate income tax when the VAT invoice is issued. In this case, the seller is probably to be retrospectively collected and penalized for late payment of corporate income tax if simultaneously satisfying:
The delivery date and the date of making invoices is different from the period of corporate income tax declaration; accountants are not recognized the corporate income tax amount when it is calculated back into the actual declaration period of delivering goods, if it leads to an increase in the payable tax amount.
Example: Company Big Star exports a batch of goods valued VND 100 million and a VAT of 10% on December 5, 2019 (Price of the lot is 80 million VND). On January 3, 2019, Company Big Star issued an invoice for the above lot. We know that in the corporate income tax form in 2019, Company Big Star must pay 5 million tax.
According to the above example, if we do follow the regulations, on December 5, 2019, when selling the lot, the accountant must issue an invoice and record the revenue to calculate corporate income tax of 100 million. Then, in 2019 corporate income tax form, it will not be a tax of 5 million, but a tax of VND 5 million + (VND 100 million - VND 80 million) * 20% = VND 9 million. However, the accountant does not record, and waits until January 3, 2019, issuing an invoice and recording the turnover for calculating enterprise income tax in the period 2019. When the tax authorities check, they will require revenue recognition for corporate income taxation in 2019, resulting in a retrospective corporate income tax of 4 million and a penalty of late payment = 4 million x 0.05% x the number of days of late payment.
3. Conclusion
When selling and providing goods or services, firms need to issue invoices and use invoices to record these revenues of their companies. The time of issuing VAT invoices is the time of transferring the ownership or right to use goods to buyers, regardless of whether money has been collected or not. From the actual operation of enterprises, the article analyzed several situations related to the time and period of making the financial invoices that businesses usually violate. For the case, goods delivering before invoices, there is no legal risk for both the buyer and the seller. With the case, the date of purchase invoice issuing after the date goods entered into the warehouse and the date of selling voice, the buyer is deducted the purchase VAT at the time of receipted invoice and be included in the deductible expenses (Only needing the invoice at the time that the tax authority checks). However, the seller can be fined for the behavior making invoices at the wrong time, retrospectively collected and penalized for late payment of VAT and corporate income tax. Therefore, accountants need to understand clearly to distinguish cases and legal risks that may occur with enterprises. Hence, the accountant needs to prepare all the necessary procedures and documents so that the tax authorities do not doubt whether this is tax evasion or the case legalizes unrealistic transactions.
REFERENCE:
- Circular 219/2013/TT-BTC of Ministry of Finance promulgated 31/12/2013 guiding the VAT law.
- Circular 96/2015/TT-BTC (Amending Circular 78/2014/TT-BTC) of Ministry of Finance promulgated 22/6/2015 guiding the corporate income tax law.
- Circular 39/2014/TT-BTC of Ministry of Finance promulgated 31/03/1014 guiding the purchase invoice.
- Circular 10/2014/TT-BTC of Ministry of Finance promulgated 17/01/2014 guiding the handling the derogation in invoice.
HÓA ĐƠN ĐẦU VÀO PHẢN ÁNH SAI THỜI ĐIỂM: PHÂN BIỆT CÁC TRƯỜNG HỢP VÀ CÁCH XỬ LÝ
ThS. Nguyễn Thu Ngân
Bộ môn Khoa học tự nhiên giảng dạy bằng tiếng Anh
Khoa Quốc tế, Trường Đại học Kỹ thuật Công nghiệp Thái Nguyên
Tóm tắt:
Trong chuẩn mực kế toán, chế độ kế toán và các giáo trình kế toán có đề cập đến các trường hợp hàng và hóa đơn cùng về, hàng về trước hóa đơn về sau, hàng về sau hóa đơn về trước, hoặc hàng bán thẳng không qua kho. Trong thực tế, khi phát sinh việc trao đổi mua bán hàng hóa, đã có rất nhiều trường hợp giao hàng trước còn hóa đơn về sau, thậm chí có trường hợp ngày hóa đơn mua vào sau ngày nhập hàng và ngày hóa đơn đầu ra. Những trường hợp này làm cho nhiều kế toán viên gặp khó khăn trong việc xử lý và hạch toán. Bài báo này sẽ chỉ ra cách để phân biệt và xử lý các trường hợp trên.
Từ khóa: Hàng hóa, hóa đơn, hạch toán, rủi ro, sai thời điểm.
