Vietnam and E-Invoice

Vietnam started the e-invoicing process in 2018, with the approval of Decree No. 119. According to the new decree, compliance period for companies has been extended to two years. However, ongoing Covid-19 process and other difficult challenges have made the Vietnamese government mandatory to postpone the compulsory use of e-invoices until July 2022 in accordance with the 123/2020 / NI-CP Decree. The decree represents a decisive step for Vietnam to advance digitalization. It designates and makes e-invoicing a common practice in the public and private sector (B2B2G). The aim of the decree is to increase business competitiveness and to combat tax fraud.

What will change on July 1, 2022?

Decree 123/2020 / NI-CP establishes and regulates the two-year e-invoice compliance process for companies and taxpayers in Vietnam, which ends on October 31, 2020. In this context, companies that provide goods/services and taxpayers will need to issue e-invoices. Therefore, invoices printed in paper form will not be valid. To issue an e-invoice, taxpayers must first register on the General Department of Taxation’s (GDT) website and obtain approval. Regulations issued by GDT determine two types of invoices: invoices with GDT ID codes and invoices without GDT ID codes. The identification code is issued by the tax office using the information provided by the taxpayers on the e-invoice. This code must be attached to the e-invoice before it is sent to the recipient.

Features of e-invoicing in Vietnam The relevant circular of Ministry of Finance details the technical requirements of e-invoice application. Accordingly, e-invoices in Vietnam must be in XML format, have a digital signature. And e-invoices must be stored securely for 10 years. Taxpayers must transmit data on e-invoices to tax authorities directly or through an authorized service provider. What are the requirements for e-invoicing providers in Vietnam? The E-invoicing service provider must comply with all financial, legal, technical requirements stipulated by GDT: – Secure connection. Connecting with GDT 24 hours a day, 7 days a week. – Providing multi-device access. It supports a range of different device types such as user computers, tablets and smartphones. – Safe connections. To protect the confidentiality and integrity of the data exchanged between participants. – To have a data recovery system. – Protection of the invoice. It offers e-invoice storage and custody services that guarantee security and integrity of your documents. The stored data should also be available for online consultation. – Your provider must comply with requirements for data standards published by the Ministry of Finance.