Months earlier, we reported that Vietnam was planning to introduce electronic invoicing.

Starting in November 2021, the plan is now to become a reality and roll out electronic invoicing in the country (in Vietnamese: Hóa Đơn Điện Tử or HĐĐT).

This project is divided into two phases:

• Phase 1 (Nov 2021 – Mar 2022) is to start using e-invoicing in 6 provinces and cities, these include Hanoi, Ho Chi Minh City, Hai Phong, Quang Ning, Phu Tho, and Binh Dinh.
• Phase 2 (Apr 2022 – Jul 2022) will then initiate the implementation of e-invoicing in all remaining 57 provinces and cities.

Since 2011 it is possible for vietnamese companies to access and use electronic invoices. Decree No. 119/2018/ND-CP on 12 September 2018 then introduced electronic invoicing nationwide in Vietnam. Now, according to Decree 119, it has been decided that e-invoicing will be mandatory in Vietnam from November 1, 2020. The adoption of Decree 119 and the circular by the Vietnamese government, contain a detailed roadmap for the introduction of electronic invoicing.

This decree represents a decisive step towards digitization for Vietnam, as electronic invoicing is to be introduced and become common practice in both the public (B2B) and private (B2G) sectors. The aim of this introduction and this step towards digitization is to combat tax fraud and to increase competitiveness among companies.

Decree 119 makes e-invoicing mandatory in Vietnam from 1 November 2020. According to Decree No. 51/2010/ND-CP and No. 04/2014/ND-CP, the final deadline for the changeover is 31 October 2020, when the two-year grace period for all enterprises ends. Printed invoices from taxpayers, purchased invoices from the tax authority and pre-printed invoices are no longer valid after this period and must switch to e-invoicing.

Some companies will also be required to register with the GDT (General Department of Taxation) from November 2020 to obtain tax codes and attach them to electronic invoices.

E-invoicing with verification code

The following companies must provide e-invoices with tax codes and attach them to the tax declaration:

• The self-employed
• Individuals and companies in the trade and service sector (annual turnover of approx. 38,000€)
• Companies in agriculture, forestry, fishing and construction (annual turnover of more than 116,000€)
• Companies with high tax risk
  • Must submit electronic invoices with verification code for 12 consecutive months for the business to be reassessed
  • if the registered business address has changed twice or more within a 12-month period without the company making a prescribed declaration or failing to declare and pay the tax properly in the new place of registration;
  • if the company has violated the accounting rules in the previous year and has been penalized

E-invoicing without verification code

E-invoicing without a verification code may be issued by industries and companies that are not listed above and are not eligible for tax returns. Nevertheless, the data elements of the electronic invoice must still be submitted to the tax authorities. In Vietnam, this can be done directly or via an authorized e-invoicing service provider, such as INPOSIA.