Is it possible to cancel output invoices with tax declaration?

Whether it is allowed to cancel invoices that have declared output tax is a question of many people. So in what cases can an invoice be canceled and what steps should be taken to comply with the law? Please follow the article from Smart Solutions For Business Company Limited (S4B Vietnam) to grasp the basic information above.

1. What is an output invoice?

Output invoice is an invoice issued by the seller to the buyer when a transaction of goods or service provision takes place. Thus, it can be understood that when a business is the buyer in a transaction, the invoice received is an input invoice. On the contrary, when you are the seller, the invoice the business issues to the buyer is an output invoice.

2. Why does the invoice need to be canceled?

Canceling invoices is considered a basic operation that every accountant must know to be ready to handle if an error occurs in an invoice and needs to be canceled. However, whether canceling electronic invoices or paper documents, the reason for canceling invoices is not only due to errors but also many other reasons.

Details of the reasons for canceling invoices have been clearly stipulated by the Ministry of Finance in Clause 2, Article 29 of Circular 39/2014/TT-BTC:

  • Printed invoices that are misprinted, duplicated or overprinted must be canceled before liquidating the invoice printing contract.
  • Organizations, businesses, households, and individuals that have invoices and do not continue to use them must cancel the invoices. Accordingly, the deadline for canceling invoices will be 30 days at the latest from the date of notification to the tax authority. In cases where the tax authority has announced that the invoice is no longer valid, business units must destroy the invoice no later than 10 days from the date the tax authority announces the end of validity or from the date of discovery. Get your lost invoice back.

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What is the Process for Cancelling Tax Invoice

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3. Cancel electronic invoices quickly and most accurately today

a. Make a Minute of cancellation of electronic invoices

The first step that businesses need to take to cancel electronic invoices is to create a Minute of Cancellation of electronic invoices. Accordingly, the cancellation record needs to clearly state the reason for the error requiring a new invoice. Note, the minutes are effective when stamped and signed by both parties in accordance with current legal regulations.

b. Cancel the created electronic invoice

After completing the first step, businesses need to proceed with canceling the created electronic invoice. Businesses can perform this step right on the electronic invoice software system they are using.

c. Create alternative electronic invoices on software

After the work of canceling invoices and submitting cancellation notification documents to tax authorities is completed, businesses need to create replacement electronic invoices on the electronic invoice software they are using. One thing to note, replacement invoices must be prepared in accordance with the law. For example, there must always be the words “This invoice replaces invoice number… Symbol… Date… month… year…” in the duplicate invoice.

Important notes about invoices canceling 2024 Vietnam

4. Cases of canceling electronic invoices that have declared output VAT

a. Cancel issued electronic invoices that have not yet been sent to customers

In cases where businesses have issued invoices and signed electronically but have not yet sent them to customers, errors have been promptly detected. Or, the unit makes a change in not receiving the goods, the customer cancels the contract… before the invoice is sent to the customer. In these cases, the unit needs to make a record of agreement on cancellation/revocation of the newly created electronic invoice. Invoice content must be clearly stated and have a stamp and signature.

b. Cancel electronic invoices that have been issued but have not yet declared VAT

If an error is detected when an electronic invoice has been sent to the customer, electronically signed for the customer or the service or goods are returned by the buyer without declaring VAT for both the seller and the buyer.

c. Cancel the issued electronic invoice and declare VAT

In cases where errors are discovered after both parties have declared VAT, or part or all of the goods are returned by the buyer, the invoice will be processed as follows: If an error is detected in the invoice: Both parties need to sign a paper or electronic agreement, based on the new adjustment, to issue an electronic invoice. Note for accountants that adjusted invoices cannot record negative numbers.

Above, Smart Solutions For Business Company Limited (S4B Vietnam) has answered the questions of many accountants about whether it is possible to cancel output invoices with tax declaration. Hope the above information is useful to readers. If you have other questions that need advice or support related to tax and accounting consulting, please contact us:

Smart Solutions For Business Company Limited (S4B Vietnam)

  • Address: Unit 602A, Tower A, Handi Resco Office Building. 521 Kim Ma Street, Ba Dinh District, Hanoi
  • Tel: + 84 24 3974 4181
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