The tax sector has launched e-invoice across the country to modernise management and prevent invoice fraud.

From July 1, 2022 all businesses, economic organisations, business households
and individuals will implement e-invoices. 

Benefits of e-invoices

To implement the Law on Tax administration 38/2019/QH14, the Government issued Decree 123/2020/ND-CP stipulating invoices and documents. Regulations on e-invoices are the most important provisions of the decree.

From July 1, 2022, all businesses, economic organisations, business households and individuals will implement e-invoices (except for small and medium-sized enterprises, cooperatives, households and individuals specified in Clause 1, Article 14 of the Decree that do not electronically transact with the tax man and lack information technology infrastructure, accounting software system, e-invoicing software to use e-invoices and transmit data to the buyer and the tax. They will buy invoices from the tax authorities according to the regulations in Article 23 of the decree).

Decree 123 plays an important role in transforming the method of management and use of e-invoices, and helps save costs for businesses and society.

The use of e-invoices will lower costs for businesses compared to using paper-based invoices.

Regulations related to e-invoices overcome risks of loss, damage or fire when using paper-based invoices as the e-invoice system is backed up, so the loss of invoice data is impossible.

The use of e-invoices will create the trust for the buyer of goods and services; the buyer can check information seller provides to the tax man and to those on the tax system. The suspension of issuance invoices of enterprises vacating or missing by the tax system will prevent the buyer from using e-invoices of these enterprises.

According to the General Department of Taxation, the use of e-invoices will help the tax man and other agencies develop a database on e-invoices.

The tax and management agencies will not spend a lot of time and costs to check invoices, contributing to preventing tax fraud and tax evasion.

The use of e-invoices will remove the illegal use of invoices and making fake invoices, contributing to boosting transparent business practices. The implementation of e-commerce will be improved. In addition, the use of e-invoices minimises the use of printed paper, contributing to environmental protection.

Expediting the execution of e-invoices according to each phase

The Ministry of Finance issued Circular 78/2021 to instruct the implementation of Decree 123.

The ministry requested the General Department of Taxation to make plans for implementation in two phases and issued decisions on execution of e-invoices in phase 1 in six provinces and cities Hanoi, HCM City, Hai Phong, Phu Tho, Quang Ninh and Binh Dinh.

Circular 78 provides regulations on e-invoices and paper-based invoices.

The contents of Circular No. 78/2021/TT-BTC stipulating a number of contents on e-invoices, including: authorisation to make e-invoices; sample display of various types of electronic invoices; electronic invoice model number symbol, electronic invoice symbol; change to apply electronic invoices with tax authority's code; apply e-invoices to a number of other cases; e-invoices with the tax authority's code are generated from the cash register with an electronic data transfer connection with the tax authority; criteria for selection of e-invoice service providers to sign a contract to provide e-invoice services with the tax authority's code and services of receiving, transmitting and storing invoice data and services other matters.

The General Department of Taxation asks provincial and municipal tax departments to review and classify taxpayers and notify them of the plan for the preparation on infrastructure and information technology solutions for the use of e-invoices.

The departments are asked to review and notify local e-invoice service providers about the implementation of e-invoices so they can prepare solutions and information technology infrastructure, providing e-invoice services to customers according to the Law on Tax Administration, Decree 123/2020 and Circular 78/2021.

Local tax departments are also required to instruct taxpayers and tax officers these regulations and notify hotlines at tax departments and branches, and regularly review and capture problems during preparation and initial implementation of e-invoices for handling. For issues beyond the local tax departments’ authority, they must report to the General Department of Taxation and the Ministry of Finance for timely resolution.