Is a digital signature valid? What are case where an e-invoice without a digital signature is valid in Vietnam?

What are regulations on legal e-invoices in Vietnam?

Pursuant to the provisions of Clause 7, Article 3 of Decree 123/2020/ND-CP, a legal e-invoice is one that ensures accuracy and completeness in terms of both form and content according to the regulations set out in Decree 123/2020/ND-CP.

Therefore, a legal e-invoice must ensure accuracy and completeness in both form and content.

Does a digital signature have legal value in Vietnam?

Pursuant to Article 3 of Decree 130/2018/ND-CP, the regulations are as follows:

Interpretation of terms

In this Decree, the following terms are understood as follows:

1. "Key" is a series of binary numbers (0 and 1) used in cryptographic systems.

2. "Asymmetric cryptographic system" is a cryptographic system capable of generating a pair of keys, including a secret key and a public key.

3. "Secret key" is a key within a pair of keys belonging to an asymmetric cryptographic system, used to create a digital signature.

4. "Public key" is a key within a pair of keys belonging to an asymmetric cryptographic system, used to verify a digital signature created by the corresponding secret key in the key pair.

5. "digital signature" is the process of inserting a secret key into a software program to automatically create and attach a digital signature to a data message.

6. "digital signature" is a type of electronic signature created by transforming a data message using an asymmetric cryptographic system, wherein the person who has the original data message and the public key of the signer can accurately determine:

a) The above transformation was created using the correct secret key corresponding to the public key in the same key pair;

b) The integrity of the data message content since the above transformation was performed.

...

Additionally, in accordance with Article 8 of Decree 130/2018/ND-CP, a digital signature has legal value in the following cases:

- In cases where the law requires a document to have a signature, the requirement for a data message is considered fulfilled if the data message is signed with a digital signature and that digital signature is securely ensured according to the provisions of Article 9 of Decree 130/2018/ND-CP.

- In cases where the law requires a document to be stamped by an organization, this requirement for a data message is considered met if the data message is signed by a digital signature of the organization and that digital signature is securely ensured according to the provisions of Article 9 of Decree 130/2018/ND-CP.

- Foreign digital signatures and digital certificates permitted for use in Vietnam under the provisions of Chapter V of Decree 130/2018/ND-CP have legal value and effectiveness equivalent to digital signatures and digital certificates issued by Vietnamese public digital signature certification service providers.

Is a digital signature valid? What are case where an e-invoice without a digital signature is valid in Vietnam? (Image from the Internet)

What are case where an e-invoice without a digital signature is valid in Vietnam?

According to Clause 7, Article 10 of Decree 123/2020/ND-CP regarding the content of invoices, the following is specified:

Invoice Content

...

7. Signature of seller, signature of buyer, specifically:

a) For invoices printed by the tax authority, the invoice must have the seller's signature, the seller's seal (if any), and the buyer's signature (if any).

b) For electronic invoices:

In the case where the seller is a company or organization, the digital signature of the seller on the invoice is the digital signature of the company or organization; if the seller is an individual, the personal digital signature or the signature of the authorized person may be used.

In cases where e-invoices do not necessarily require the digital signature of the seller and buyer, this follows the regulations in Clause 14 of this Article.

...

According to the above regulations, e-invoices with a tax code issued by the tax authority must have the seller's digital signature and may or may not have the seller's seal and the buyer's signature.

An e-invoice is considered to not have a valid digital signature in cases specified in Clause 14, Article 10 of Decree 123/2020/ND-CP, specifically as follows:

- An electronic invoice does not necessarily need to have the buyer's digital signature (including cases where an e-invoice is issued when selling goods or providing services to overseas customers).

In cases where the buyer is a business entity and there is an agreement between the buyer and seller concerning the buyer meeting the technical conditions to digitally sign on an e-invoice issued by the seller, then the e-invoice may have the digital signature of both the seller and buyer according to their agreement.

- For e-invoices issued by the tax authority for each transaction occurrence, there is no requirement for the seller's or buyer's digital signature.

- For e-invoices for sales at supermarkets or commercial centers where the buyer is an individual not engaged in business, the invoice does not necessarily need to contain the buyer's name, address, or tax number.

For e-invoices for fuel sales to customers who are individuals not engaged in business, it is not necessary to have the indicators of invoice name, invoice template symbol, invoice symbol, invoice number; buy’s name, address, tax number; buyer’s digital signature; seller’s digital signature; value-added tax rate.

- For electronic invoices as stamps, tickets, or cards, the invoice does not necessarily need to have the seller's digital signature (except where stamps, tickets or cards are electronic invoices with tax authority codes), the buyer's information (name, address, tax number), tax amount, and value-added tax rate.

In cases where stamps, tickets, cards are pre-valued, they do not necessarily need to have unit, quantity, and unit price.

- For electronic records for air transportation services issued via websites and e-commerce systems prepared under international conventions for individuals not engaged in business considered as e-invoices, the invoice does not necessarily need to have the invoice symbol, invoice template symbol, sequential invoice number, value-added tax rate, buyer's tax number, and address, or the seller's digital signature.

In cases where a business organization or a non-business organization purchases air transportation services, electronic records for air transportation services issued via websites and e-commerce systems prepared under international conventions for business individuals, or non-business individuals of the organization are not considered e-invoices.

Air transportation service business enterprises must issue e-invoices with complete content according to regulations provided to organizations using the transport services.

- For construction and installation activities; selling houses for a progressive payment under a contract, the invoice does not necessarily need unit, quantity, or unit price.

- For Internal Transfer Slip cum Internal Transport, the slip should show information related to internal dispatch orders, goods recipients, goods dispatchers, warehouse dispatch locations, and delivery points.

To be specific: the buyer's name should reflect the goods recipient, the buyer's address should reflect the delivery point; the seller's name should reflect the goods dispatcher, the seller's address should reflect the warehouse dispatch location and the transport vehicle; no tax, tax rate, total payment amount should be shown.

For Agent Delivery Note, it must show details such as economic contract, transporter, transport vehicle, warehouse dispatch location, warehouse receipt location, product name, unit, quantity, unit price, and total amount.

To be specific: the economic contract number and date signed between the parties; name of the transporter, transport contract (if any), seller's address reflecting the warehouse dispatching location.

- Invoices used for Interline payments between airlines prepared according to the regulations of the International Air Transport Association do not need to have the following indicators: invoice symbol, invoice template symbol, buyer's name, address, tax number, buyer's digital signature, unit, quantity, unit price.

- Invoices issued by air transport enterprises for agents based on reconciled reports between the two parties and compilation lists do not need to have unit price.

- For construction, installation, production, provision of products or services by national defense-security enterprises serving national defense-security activities as specified by the Government of Vietnam, invoices do not need to have units, quantity, unit price; the goods/services name part records the provision of goods/services according to the contract signed between the parties.