E-Invoicing in Vietnam: Essential Compliance Guidance for Businesses

Vietnam has made significant strides towards modernizing its tax administration with the mandatory implementation of electronic invoicing (e-invoicing) for all taxpayers. Introduced under the Law on Tax Administration 2019, these regulations have undergone important revisions effective from June 1, 2025, to address challenges encountered during the initial rollout. This article offers detailed guidance for businesses navigating the e-invoicing landscape.

A Brief Overview of E-Invoice Regulations

Starting July 1, 2022, a diverse array of entities—including corporations, economic organizations, and individual taxpayers—are required to adopt e-invoices for tax purposes. The main impetus for these changes is to align Vietnam’s invoicing practices with contemporary tax law and improve overall tax administration efficiency.

Key Types of E-Invoices in Vietnam

E-invoices in Vietnam are classified into two primary categories:

1. Authenticated E-Invoice: This type is issued with an authentication code provided by the tax authorities, which must be sent to the buyer.
2. Unauthenticated E-Invoice: Issued without the authentication code, these invoices are still valid but less regulated.

Purpose-Based Classification of E-Invoices

According to Article 8 of Decree 123, e-invoices are further classified based on their usage:

• E-VAT Invoices: Used by organizations declaring VAT via the deduction method.
• E-Sales Invoices: Applicable to those using the direct VAT method.
• E-commerce Invoices: A new category catering specifically to services provided via e-commerce.
• Cash-register Generated E-Invoices: For small businesses achieving an annual revenue threshold.
• Public Property Sales Invoices: Relevant for transactions involving public assets.

Information Required on E-Invoices

An eligible e-invoice should include, but is not limited to:

• Invoice Name and Serial Number: Clearly indicating the type of invoice.
• Buyer and Seller Details: Full names, addresses, and tax codes.
• Transaction Details: Descriptions of goods or services, including specifics for sectors like transport and food service.
• Digital Signatures: From both the seller and buyer, ensuring authenticity.

Compliance Steps for E-Invoice Registration

To register for e-invoicing, businesses must follow these steps:

1. Application Submission: Prepare and submit Form No. 01/DKTD-HDDT to the General Department of Taxation (GDT) through designated service providers.
2. Acknowledgment of Application: Businesses will receive an electronic confirmation once their application is submitted.
3. Result Notification: Within one day, the tax authority will confirm whether the registration has been accepted or if additional actions are required.

Timing for Issuing E-Invoices

Decree 70/2025/ND-CP sets clear guidelines for when invoices must be issued:

• For goods sales, invoices must be issued upon ownership transfer, irrespective of payment status.
• In the case of exporting goods, they must be issued by the next business day post-customs clearance.
• For services, invoices should reflect completion of service provision.

Suspension of E-Invoice Use

Certain conditions may lead to the suspension of e-invoice usage. These include:

• Invalidated Tax Identification Numbers (TIN).
• Notices from tax authorities due to operational issues or tax violations.
• Activities involving illegal goods, fraud, or tax evasion.

Penalties for E-Invoicing Violations

Businesses are subject to penalties for non-compliance with invoicing regulations, as detailed in Decree 125/2020/ND-CP. Examples of violations and corresponding fines include:

• Cautions: For minor issues like issuing invoices at incorrect times without delaying tax obligations.
• Fines: Ranging from VND 500,000 to VND 20,000,000 (approximately USD 20 to 784) depending on the severity of the violation, such as failing to issue invoices or issuing incorrect types.

E-Invoicing Compliance Resources

For additional insights and essential updates on compliance with e-invoicing in Vietnam, businesses are encouraged to consult dedicated resources or seek guidance through professionals well-versed in this regulatory framework.

About Us

For further assistance in navigating Vietnam’s complex tax landscape, visit Vietnam Briefing. We provide resources tailored for foreign investors, including regulatory updates and practical guidance for establishing and running businesses in Vietnam. Reach out via email at vietnam@dezshira.com for personalized support.