Is it compulsory for small-sized enterprises to pay for using e-invoices in Vietnam?

Is it compulsory for small-sized enterprises to pay for using e-invoices in Vietnam?

Pursuant to Clause 1, Article 14 of the Decree 123/2020/NĐ-CP, which stipulates entities are not required to pay service charges for a period of 12 months from the date of commencement of the use of authenticated e-invoices as follows: 

a) Small- and medium-sized enterprises, cooperatives, household and individual businesses that operate in disadvantaged areas or extremely disadvantaged areas. Disadvantaged areas or extremely disadvantaged areas are defined in the List of areas eligible for investment incentives enclosed with the Government’s Decree No. 118/2015/ND-CP dated November 12, 2015 and its amending or superseding documents (if any).

b) Other small- and medium-sized enterprises which are defined according to the requests of the provincial People’s Committees submitted to the Ministry of Finance, except enterprises operating in economic zones, industrial parks or hi-tech zones.

The General Department of Taxation shall directly provide or entrust e-invoice service providers to provide free of charge authenticated e-invoices for the abovementioned entities.

As regulations above, if your enterprise is operating in disadvantaged areas or extremely disadvantaged areas or requested by the provincial People’s Committees, it isn't required to pay service charges for a period of 12 months from the date of commencement of the use of authenticated e-invoices.

Which cases shall be suspended from using e-invoices in Vietnam?

Pursuant to Clause 1, Article 16 of this Decree, which stipulates enterprises, business entities, other organizations, household or individual businesses shall suspend their use of authenticated and unauthenticated e-invoices in the following cases:

a) An enterprise, business entity, other organization, household business or individual business has its TIN invalidated;

b) An enterprise, business entity, other organization, household business or individual business does not operate at the registered location as verified and announced by the tax authority;

c) An enterprise, business entity, other organization, household business or individual business has sent a notification of business suspension to a competent authority;

d) An enterprise, business entity, other organization, household business or individual business is banned from using e-invoices by the tax authority for the purpose of enforcement of payment of tax debts;

dd) E-invoices are used to sell smuggled goods, banned goods, counterfeits, goods violating intellectual property rights as detected and informed by competent authorities;

e) E-invoices are used for short selling of goods or services for fraudulent purposes as detected and informed by competent authorities;

g) A business registration authority or competent authority requests an enterprise to suspend operation in a conditional business line after finding that this enterprise does not fully satisfy the business conditions prescribed by law.

If the tax authority, through inspection, discovers that the enterprise is established for the purpose of trade and use of illegal e-invoices or illegal use of e-invoices for tax evasion purposes, the enterprise shall face administrative penalties and be suspended from use of e-invoices according to the decision issued by the tax authority.

Best regards!