What are the benefits of using e-invoices? Where will the application of e-invoices be implemented in Vietnam in 2022?

Main Content

• What is the significance of the use of electronic invoices?
• What are the tasks of agencies and sectors in implementing e-invoices?
• Detailed list of provinces and central-affiliated cities applying regulations on electronic invoices

What is the significance of the use of electronic invoices?

According to Official Dispatch 1799/BTC-TCT of Vietnam dated February 24, 2022, the application of electronic invoices has enormous significance as follows:

(i) For buyers of goods/services:

- Buyers can easily search for and verify information on electronic invoices issued by sellers.

- Costs incurred from use of electronic invoices are smaller than those incurred from use of physical invoices (enterprises must not incur costs of printing paper, ink, transport and storage of invoices, and space for invoice storage is not required, etc.).

- Costs incurred from following administrative procedures in tax sector are reduced.

- Risks of loss, damage or burning of physical invoices are eliminated.

- Buyers of goods/services feel safe when using electronic invoices because they may check information on the electronic invoice on the tax authority's system after receiving it from the seller.

(ii) For goods sellers/service providers:

- Strict compliance with regulations on invoices and records by organizations and individuals will create a healthy and fair business environment for taxpayers, and thus facilitate enterprises’ business operations.

- Administrative procedures in connection with invoices are minimized; costs incurred from sending, storage and retention of invoices as well as risks of invoice loss are reduced.

(iii) For society:

- Methods of serving the people, management and organization methods of tax authorities are changed towards automation in order to reform administrative procedures, facilitate, reduce costs and improve profits of enterprises.

- Strict compliance with regulations on invoices and records by organizations and individuals will create a healthy and fair business environment for taxpayers, and thus facilitate enterprises’ business operations.

- E-commerce and digital platform-based business models are developed to meet global development trends.

- Use of electronic invoices aims to promoting digital transformation by enterprises, finance authorities and other regulatory authorities.

- Common interests are brought to the society such as saving of costs, natural resources, human resources and environmental protection.

(iv) For tax authorities and relevant regulatory authorities:

- Use of electronic invoices helps tax authorities build invoice database; combine invoice information with other tax administration information for building a complete taxpayer database to serve the performance of information analysis tasks which aim to serving management, forecasting and assisting taxpayers in complying with tax laws and managing risks in tax administration.

- Management methods are changed with a view to applying information technology and improving operational processes towards automatic data processing and control to facilitate efficient use of resources and costs, etc. by tax authorities.

- Use of invoices by enterprises of which owners have made getaway or been missing as well as tax fraud or tax evasion are promptly prevented.

What is the significance to switch to using e-invoices?

What are the tasks of agencies and sectors in implementing e-invoices?

The specific tasks of the agencies and sectors specified by the Ministry of Finance in Official Dispatch 1799/BTC-TCT of Vietnam dated February 24, 2022 are as follows:

- Direct Provincial Departments of Taxation to:

+ Request provincial/municipal standing committees of Vietnamese Communist Party and Provincial People’s Committees to establish provincial steering boards for application of electronic invoices, as prescribed in this Decision, of which provincial leaders shall act as board heads and other members are senior representatives of provincial Departments of Taxation, and relevant provincial departments and authorities (hereinafter referred to as “steering boards”). Each steering board shall have a standing team of which the team leader is Director of the Provincial Department of Taxation and other members are senior representatives and officials of Tax Sub-departments and its affiliated departments, and representatives of other provincial departments, authorities and units;

+ Proactively cooperate with Provincial Departments of Information and Communications and provincial press and broadcasting agencies to promptly disseminate information on benefits of the use of electronic invoices and new regulations on electronic invoices set out in the Law on tax administration, Decree No. 123/2020/ND-CP and Circular No. 78/2021/TT-BTC. Contents of information dissemination appropriate to each group of entities should be prepared and provided adopting various methods of information dissemination during implementation of this document;

+ Review and classify taxpayers that are local enterprises, business entities, household and individual businesses, and eligible to use electronic invoices as prescribed, and inform them of relevant regulations from the starting date of use of electronic invoices; prepare information technology facilities to issue and transmit data on electronic invoices to tax authorities, send electronic invoices to buyers, and other regulations on management and use of electronic invoices;

+ Review and inform local electronic invoice service providers of use of electronic invoices so that they can establish information technology facilities that are qualified to provide electronic invoice services in accordance with regulations of the Law on tax administration, Decree No. 123/2020/ND-CP and Circular No. 78/2021/TT-BTC ;

+ Organize training for taxpayers and tax officials in use of electronic invoices in accordance with regulations of the Law on tax administration, Decree No. 123/2020/ND-CP and Circular No. 78/2021/TT-BTC so as to ensure the efficient use of electronic invoices;

+ Establish management centers and publish their hotline numbers at the premises of Provincial Departments of Taxation and Tax Sub-departments to receive and assist taxpayers in using electronic invoices. Frequently review and promptly deal with difficulties that arise during the preparation and starting period of use of electronic invoices in provinces. Issues that beyond the authority of Provincial Departments of Taxation shall be submitted to Provincial People’s Committees, General Department of Taxation, and Ministry of Finance for consideration.

- Direct Provincial Departments of Information and Communications and provincial press and broadcasting agencies to intensify dissemination of information on significance and benefits of the use of electronic invoices and new regulations on electronic invoices set out in Decree No. 123/2020/ND-CP and Circular No. 78/2021/TT-BTC .

- Director Provincial Departments of Planning and Investment to notify and disseminate information to new enterprises when issuing business registration certificates to them on their rights and obligations to use electronic invoices from the day on which such electronic invoices are compulsorily used in provinces.

- Direct provincial regulatory authorities that have demand for use of electronic invoices such as market surveillance authorities, customs authorities, public security authorities, etc. to prepare technical conditions necessary for connecting and searching information on electronic invoices to serve their management tasks in accordance with regulations of law immediately after application of regulations on use of electronic invoices in provinces.

- Direct public security authorities to promptly learn about new forms of fraudulent acts for obtaining illegal profits or appropriating tax amounts, and work out appropriate preventive measures.

Detailed list of provinces and central-affiliated cities applying regulations on electronic invoices

The detailed list of provinces and central-affiliated cities applying regulations on electronic invoices is as follows: