Summary of Replacement Invoices and Adjustment Invoices

The processing of electronic invoices with errors is a common occurrence in accounting and tax practices. Depending on the nature of the error and the business transaction, the seller can choose to issue a replacement invoice or a corrected invoice in accordance with legal regulations.

Decree No. 70/2025/ND-CP (amending and supplementing Decree No. 123/2020/ND-CP) has clarified the scope and application of these two methods. The following article explains their legal essence to help distinguish and apply them accurately.

Replacement Invoice

Concept

A replacement invoice is an electronic invoice issued to entirely replace the content of a previously issued electronic invoice that has a serious error, rendering the original invoice no longer suitable for tax declaration and accounting purposes.

The replacement invoice must clearly state: "Replaces invoice Template No. …, Symbol …, Number …, dated … month … year …".

When to Issue a Replacement Invoice

A replacement invoice is used when the issued invoice has a material error:

• Incorrect tax identification number of the seller or buyer
• Incorrect payment amount, including the sum, tax rate, and tax amount
• Incorrect information about goods or services, such as type, specifications, or quality
• The invoice is damaged, torn, erased, or has missing information
• The invoice is lost or unusable

Legal Principles for Issuing a Replacement Invoice

• The replacement must be agreed upon or formally notified to the buyer
• The replacement invoice entirely supersedes the original invoice; they do not coexist in terms of declaration value
• The data of the replacement invoice must be clearly linked to the invoice being replaced
• Tax declarations are made based on the replacement invoice

Corrected Invoice

Concept

A corrected invoice is an electronic invoice issued to adjust a part of the content of a previously issued electronic invoice, in cases where the original invoice remains legally valid but has discrepancies or requires adjustments.

The corrected invoice must clearly state: "Corrects invoice Template No. …, Symbol …, Number …, dated … month … year …".

When to Issue a Corrected Invoice

Firstly, for invoices issued with errors in:

• Tax identification number
• Amount
• Tax rate, tax amount
• Information about goods or services

and the parties choose the correction method instead of replacement.

Secondly, for invoices issued correctly at the time of issuance but subsequently arise:

• Adjustments to payment value upon settlement
• Adjustments to volume or value based on the conclusion of competent authorities

Thirdly, for specific cases:

• Commercial discounts based on sales volume or output
• Returns of goods or services (in whole or in part)
• Adjustment of fees or refunds in the insurance sector
• Transaction adjustments in real estate and construction
• Service fee adjustments in banking and payment intermediary services
• Adjustments in telecommunications and prepaid card sectors

Legal Principles for Issuing a Corrected Invoice

• A corrected invoice does not invalidate the original invoice
• Tax declarations are made in the period when the corrected invoice is issued; prior periods are not retroactively adjusted
• The content of the correction must accurately reflect the economic nature of the transaction
• The corrected invoice must be accompanied by supporting documents such as an agreement or a detailed list

Distinguishing Between Replacement and Corrected Invoices

Read more: All About Electronic Invoices: When to Issue, How to Handle Errors

Conclusion

The choice between a replacement invoice and a corrected invoice is not based on subjective will but on the nature of the error and the economic transaction that occurred.

If the error renders the original invoice unusable: issue a replacement invoice.

If there are adjustments to the value or an error that can be corrected: issue a corrected invoice.

Applying the correct method not only ensures compliance with invoice and tax laws but also minimizes risks during tax audits and inspections, and ensures transparency in accounting.