What are input invoices and why are they important?
Input invoices are documents prepared and recorded by goods sellers and service providers for purchase transactions of business households. Invoices fully show information about sellers, buyers, goods, services, quantities, unit prices, total money, transaction time... This is an important basis to prove the legal origin of goods, while serving financial management, declaration and tax calculation.
For individual business households, although they do not have a complex accounting apparatus like businesses, input invoices still play a key role.
Having input invoices helps business households protect themselves when there are disputes, inspections, and examinations, and is also a legal "shield" when functional agencies control the market, combat smuggling, trade fraud and tax loss.
According to current legal regulations, business households when purchasing goods and services to serve production and business activities must, in principle, have legal documents to prove the origin. Input invoices are the most common and safest form.
Not having invoices means that business households put themselves at risk when being checked for the origin of goods.
Input invoice receiving and management process
To limit risks, business households need to proactively implement all steps when receiving input invoices. First of all, it is necessary to clearly agree with the supplier on issuing invoices right from the time of transaction, ensuring that the business household has a tax code to record on the invoice.
When receiving invoices, it is necessary to carefully check the mandatory information: Name, address, tax code of the seller and buyer; name of goods and services; quantity, unit price, total amount; invoice date; invoice number; signature, seal as prescribed. Small errors on invoices can also cause invoices to be invalid when inspected by functional agencies.
After receiving, invoices need to be entered, monitored and stored carefully. Paper invoices must be safely preserved and scientifically arranged; electronic invoices need to be stored on a system or device to ensure traceability when needed. This is the basis for tax declaration (if subject to declaration), and also proves costs and origin of goods throughout the business process.
Legal risks if there are no input invoices
The biggest consequence of not having input invoices is not being able to prove the origin of goods. According to Article 17 of Decree 98/2020/ND-CP, amended and supplemented by Decree 24/2025/ND-CP and Decree 96/2023/ND-CP, the act of trading goods of unclear origin may be severely punished, depending on the value of the violating goods.
Goods worth less than 1 million VND may be warned or fined from 300,000 - 500,000 VND. The fine gradually increases according to the value of the goods, from a few million VND to 10-20 million VND. Especially, for violating goods worth 100 million VND or more, the fine may be up to 40-50 million VND, not including additional penalties such as confiscation of exhibits.
This is a very large risk for small business households, because with just one market inspection, the entire shipment without invoices can be considered of unclear origin, leading to heavy financial losses.
Therefore, in the context of increasingly tight tax and market management, "saving" by not taking input invoices can lead to very high prices. Business households need to change their habits, proactively request invoices when buying goods, and choose reputable and transparent suppliers.
It's a bit of a bit of a bit of a bit of a bit of a bit.
