Tax authorities answer questions about whether to make invoices when receiving deposits

Xuyên Đông |

On the Ministry of Finance's Information Portal, a reader expressed concern about the regulation on whether it is necessary to make invoices when receiving deposits.

Readers are businesses operating in the field of spa and beauty services in Ho Chi Minh City.

According to feedback, when customers have a need to use beauty services, to ensure reservation such as scheduling, booking rooms or arranging consultation schedules, customers will transfer or pay cash an amount called a reservation deposit.

At the time of receiving this amount of money, the beauty service had not been performed, there was no handover or completion of any service stage.

From the above reality, readers request the Ministry of Finance to guide according to the provisions of Decree No. 123/2020/ND-CP on invoices and documents for two cases.

In the first case, the collected money is only a deposit to ensure reservation, not included in the prepayment of the service.

If the customer does not come or cancels the appointment, this amount will be handled according to a civil agreement, including a fine or refund to the customer. Reader requests clarification on whether the business has to make an electronic invoice immediately at the time of receiving this deposit or not?

In the second case, the deposit will then be directly deducted from the service value when customers come to use the service.

Readers request the Ministry of Finance to guide the time to make invoices for this amount of money when businesses receive a deposit or when the service has been completed and customers have used the service.

Answering this question, the tax authority in Ho Chi Minh City said that Clause 2, Article 9 of Decree No. 254/2026/ND-CP dated June 30, 2026 of the Government detailing a number of articles and measures to organize the implementation of Tax Administration Law No. 108/2025/QH15 on electronic invoices and electronic documents, stipulates:

Article 9. Invoice preparation time

The time of invoice issuance for service provision is the time of completion of service provision (including providing services to foreign organizations and individuals), regardless of whether money has been collected or not.

In case the service provider collects money before or during the service provision, the time of invoice is the time of collection (excluding the case of collecting a deposit according to the provisions of the Civil Code to ensure the performance of the service provision contract).

Based on Article 328 of the Civil Code No. 91/2015/QH13 dated November 24, 2015, regulations on deposits are as follows:

A deposit is the act of one party (hereinafter referred to as the depositor) handing over to the other party (hereinafter referred to as the deposit recipient) a sum of money or precious metals, gemstones or other valuables (hereinafter referred to collectively as the deposited asset) for a term to secure the conclusion or performance of a contract.

In case the contract is concluded and implemented, the deposited assets are returned to the depositor or are deducted to fulfill the payment obligation; if the depositor refuses to conclude and implement the contract, the deposited assets belong to the deposit recipient; if the deposit recipient refuses to conclude and implement the contract, the deposited assets and an amount of money equivalent to the value of the deposited assets must be returned to the depositor, unless otherwise agreed.

Based on the above regulations, Base Tax 10 of Ho Chi Minh City has the following opinions:

Before July 1, 2026, if the company incurs a prepayment and this revenue is not in the case of collecting a deposit or advance to ensure the performance of a contract to provide services including accounting, auditing, financial consulting, tax; valuation; surveying, technical design; supervision consulting; construction investment project preparation, the company must make an invoice at the time of receipt according to the provisions of Clause 2, Article 9 of Decree No. 123/2020/ND-CP, amended and supplemented at Point a, Clause 6, Article 1 of Decree No. 70/2025/ND-CP.

From July 1, 2026, if the pre-collected amount falls under the case of collecting a deposit according to the provisions of the Civil Code to ensure the performance of the service provision contract, the company does not have to make an invoice at the time of receipt according to the provisions of Clause 2, Article 9 of Decree No. 254/2026/ND-CP dated June 30, 2026 and Article 328 of the Civil Code.

Xuyên Đông
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