Vietnam is scheduled to introduce mandatory electronic invoicing from 1 July 2022. This follows an e-invoice delay from 1 November 2020.
The General Department of Taxation (GDT) plans to make all B2B invoicing electronic, and has already prescribed the e-invoice format, with a unique government tax code, with two channels for processing. E-invoicing has been an option in Vietnam since 2011. Businesses using paper invoices currently must purchase them from the GDT will prestamped unique identification numbers.
There are two forms of Vietnamese e-invoices: those without and with verification codes.
1. Non-verification coded e-invoices
These are issued by small and micro-businesses below VND 3billion annual turnover or with less than ten employees. They are only for accounting purposed, and serve not tax or VAT reporting purposed (similar to China invoice regime). They must be reported to GDT via certified e-invoice agents. Other industries, including power, telecommunications and e-commerce may use non-verification coded e-invoices.
2. Verification coded e-invoices – higher risk businesses
This format of e-invoice must be used by: businesses over the threshold above; self-employed entrepreneurs; agricultural and construction businesses above VND 3 billion annual turnover; businesses which have failed to meet tax audit, invoice or other compliance checks.
Verification codes are provided when the business buys the printed invoice or electronically with e-invoices are fully mandated.
Companies may use e-invoices today, prior to the July 2022 mandating deadline. They should be in XML format. This should include a secure digital signature and the GDT tax code.
Businesses need to first register with the GDT to use e-invoicing, including for the use of internet-linked point-of-sale cash registers. This is both for verification and non-verification coded invoices.