The Ministry of Finance has announced a draft circular guiding the implementation of a number of articles of Law on Tax Administration and the Government Decree 123/2020 on invoices and documents.

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Entities must use e-invoices

Contents related to e-invoices stipulated in the draft include: authorizing invoice issuance; form of e-invoices; invoice template numbers and symbols; application of e-invoices for cases posing high risks related to taxes; application of e-invoice in others cases; using authenticated e-invoices which are created by POS cash registers with network connections for electronic data transfer to tax authorities; and criteria for selection of an e-invoice service provider.

The draft provides that business households and individuals paying tax according to the declaration method must use e-invoices.

If taxpayers paying taxes under the flat tax method apply for using e-invoices, the tax authorities will issue e-invoices each time a transaction occurs.

If taxpayers request to use e-invoices for each transaction, the tax authority will issue an e-invoice for each transaction.

For taxpayers in difficult socio-economic areas, if they cannot conduct transactions with the tax by electronic means, and fail to have IT infrastructure, accounting software, software to make e-invoices and send to buyers and the tax authority, they will use paper invoices externally printed by the tax authority within 12 months, and the authority will provide a solution to gradually convert to applying e-invoices.

Many entities must use e-invoices which are created by POS cash registers connected to tax authorities

The draft regulates the using of authenticated e-invoices which are created by POS cash registers with network connections for electronic data transfer to tax authorities.

Cases using authenticated e-invoices include organizations and individuals (excluding taxpayers paying taxes under the flat tax method) engaged in sectors: trade centers, supermarkets, restaurants, hotels, modern medicine retailers, entertainment services; consumer-goods retailers, goods and service providers to consumers.

Cash register connected to the tax authorities must be synchronous electronic devices, or a system of many electronic devices combined with sales software with common functions such as calculating cash, storing sales operations, sales data, printing invoices, looking up transactions, reporting transactions, and be connected to transfer data to tax authorities in a standard format by electronic means.

The Ministry of Finance stipulates that the e-invoices created from cash registers connected to tax offices shall be granted tax authorities' codes according to standards of the code-granting system of the General Department of Taxation.

The General Department of Taxation is responsible for developing formats and standards for data connection of authenticated e-invoices created by cash registers, ensuring the criteria for e-invoices as prescribed to serve management; building a database of authenticated e-invoices as a basis for directing local tax authorities in tax administration for business households and individuals and related organizations and individuals; building a database on publicizing invoice information to meet the search requirements of relevant organizations and individuals about the legitimacy of the e-invoices.

The Tax Department is in charge of exploiting the database of authenticated e-invoices to control tax branches in tax administration for taxpayers.

The tax branches are responsible for exploiting the database of authenticated e-invoices to control the revenue declaration of business households and individuals to be consistent with cost in the tax term.

This draft Circular is expected to take effect from July 1, 2022. Tax authorities encourage taxpayers that meet the conditions on information technology infrastructure to comply with regulations on e-invoices and documents as prescribed in this Circular and the Government Decree 123/2020 before July 1, 2022.