Is it permissible for oil and gas enterprises to use e-invoices in sale of goods in Vietnam?

Is it permissible for oil and gas enterprises to use authenticated e-invoices in sale of goods in Vietnam?

Pursuant to Article 91 of the Law on Tax Administration in 2019 stipulating use of electronic invoices in sale of goods and services in Vietnam as follows:

1. Enterprises and business organizations shall use authenticated electronic invoices when selling their goods/services, regardless of the value of each sale, except for the cases specified in Clause 2 and Clause 4 of this Article.

2. Enterprises operating in the field of electricity, oil and gas, post and telecommunications, clean water supply, credit, insurance, health, e-commerce, supermarket, commerce, air/road/rail/sea/inland waterway transport; enterprises and business organizations that have been or will conduct electronic transactions with tax authorities, develop information technology infrastructure, have software for accounting, issuance, access and storage of electronic invoices, and ensure the transmission of electronic invoice data to buyers and tax authorities may use unauthenticated electronic invoices when selling goods/services, regardless of the value of each sale, unless tax-related risks are high as prescribed by the Minister of Finance or they wish to use authenticated electronic invoices.

3. The household businesses and individual businesses in the cases specified in Clause 5 Article 51 of this Law and other cases of determinable revenue from sale of goods/services may use authenticated electronic invoices.

4. Regarding household businesses and individual businesses that are not qualified to use authenticated electronic invoices as prescribed in Clause 1 and Clause 3 of this Article, enterprises, business organizations and other organizations that need to provide electronic invoices for their customers, tax authorities shall issue separate authenticated electronic invoices for individual sales, provided tax is declared and paid before such electronic invoices are issued.

As regulations above, your oil and gas enterprise are not permissible to use authenticated e-invoices except in cases of high tax risk as prescribed by the Minister of Finance and in case of registration for using authenticated e-invoices.

What are the procedures for conversion to authenticated e-invoices in Vietnam?

Pursuant to Article 5 of the Circular 78 of the Circular 78/2021/ND-CP stipulating conversion to authenticated e-invoices in Vietnam as follows:

1. If a taxpayer that is using unauthenticated e-invoices wants to use authenticated e-invoices, it shall follow procedures for modification of information about the use of e-invoice as prescribed in Article 15 of Decree No. 123/2020/ND-CP.

2. If a taxpayer that is eligible to use unauthenticated e-invoices as prescribed in Clause 2 Article 91 of the Law on tax administration falls into the case of high tax risk specified in the Circular No. 31/2021/TT-BTC dated May 17, 2021 of the Ministry of Finance and receives a notice (Form No. 01/TB-KTT in Appendix IB enclosed with the Decree No. 123/2020/ND-CP) of conversion to use authenticated e-invoices, it shall follow procedures for use of authenticated e-invoices as notified. Within 10 working days from the receipt of the tax authority’s notice, the taxpayer shall follow procedures for modification of information about use of e-invoices (conversion from unauthenticated e-invoices to authenticated e-invoices) as prescribed in Article 15 of Decree No. 123/2020/ND-CP and comply with the tax authority’s notice. After 12 months from the date of conversion to use authenticated e-invoices, if the taxpayer wants to use unauthenticated e-invoices, it shall follow procedures for modification of information about use of e-invoices as prescribed in Article 15 of Decree No. 123/2020/ND-CP, and the tax authority shall consider issuing decision according to Clause 2 Article 91 of the Law on tax administration and Circular No. 31/2021/TT-BTC.

As regulations above, the procedures for conversion to authenticated e-invoices in Vietnam shall be carried out as prescribed information.