The Vietnamese government launched its implementation of electronic invoices in 2020, which now stands as an example of the clearance model. The government is organizing the integration of e-Invoicing in two phases between 2021 and 2022. These phases are characterized by the number of regions they cover. Implementation will be complete on 1 July 2022 for both public and private entities.
1. Will e-Invoicing come into effect for all taxpayers at the same time or will there be a gradual implementation?
The government envisions the implementation of e-Invoicing happening in two phases. In Phase 1 (November 2021 to March 2022), e-invoicing implementations will cover six provinces and cities: Hanoi, Ho Chi Minh City, Hai Phong, Quang Ninh, Phu Tho, and Binh Dinh. In Phase 2 (April 2022 until the end of July 2022), coverage will be extended to another 57 provinces and cities. Implementation for both the public and private sectors (which includes enterprises, economic organizations, business households, and individuals) will be complete on 1 July 2022.
2. What are the main ways of generating, transmitting, and receiving electronic invoices according to the new regulation?
One of the differences between Phase 1 and Phase 2 is the submission method. In Phase 1, the government allows only one method, which is submitted through a service provider (chosen from a list of service providers published by the tax authority). As of phase 2, submission can be done either way, using a service provider or a taxpayer’s ERP system.
3. What is the e-Invoice format in Vietnam?
Taxpayers must issue the e-Invoice to buyers in the required electronic format. All necessary information must be included in the e-Invoice regardless of the transaction value. The main content of the e-Invoice must match that of a paper invoice. As with most types of invoices, the information to be included in the Vietnam e-Invoice must be complete and accurate, including names, symbols, codes, and invoice numbers. The issuance date of e-Invoices is the date on which the digital or electronic signature is added by the seller and must be in the “ngày, tháng, năm” format. The electronic invoice must be issued in Vietnamese. A foreign language (such as English) could be included if necessary. XML Schema is identified as the official data format of e-Invoices and consists of two components: e-Invoice data and digital signature data.
4.Will invoices require a digital signature?
The electronic signature of the seller is mandatory, while the buyer’s signature is optional.
5. Will there be an archiving period for the invoices?
Yes. Taxpayers should archive their invoices in XML format with a digital signature for 10 years. Additionally, e-Invoices must be stored by both the service provider and Vietnamese tax department. Taxpayers can also archive, but it is not mandatory.
