Implementation of electronic invoices for each sale for petroleum retail business in Vietnam

Implementation of electronic invoices for each sale for petroleum retail business in Vietnam (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

On March 6, 2024, the General Department of Taxation issued Official Dispatch 837/TCT-DNL on drastically implementing electronic invoices for each sale for petroleum retail businesses.

Implementation of electronic invoices for each sale for petroleum retail business in Vietnam

Regarding the implementation of the Prime Minister's direction on strengthening the management and use of electronic invoices for petroleum retail business activities, the General Department of Taxation has issued multiple documents directing the Departments of Taxation and assigning the Department of Taxation leaders to directly guide the local tax authorities in advising the People's Committees of provinces and centrally-run cities to establish directive boards and task forces and closely coordinate with relevant departments and agencies to implement synchronized and effective solutions for the successful implementation of invoicing for each sale in retail petroleum business activities in the area.

The summary of reports from Departments of Taxation shows that: by March 6, 2024, in Vietnam, there will be only 8,285 petroleum retail stores issuing e-invoices for each sale, reaching about 52.2% of the total number of petroleum retail stores. There are still 30/63 localities with progress below 50%, especially since there are still 17/63 localities with progress below 30%.

Some localities have a large number of petroleum retail stores such as: Tien Giang (560 stores), Ho Chi Minh City (549 stores), Nghe An (527 stores), Dong Thap (457 stores), Kien Giang (444 stores), Ca Mau (359 stores), Dong Nai (339 stores), Binh Dinh (322 stores).... However, the implementation progress is slow, affecting the overall results of Vietnam. (Appendix 01 attached).

According to reports from the Departments of Taxation, one of the main reasons for the low implementation progress of some Departments of Taxation is that the department leaders have not properly assessed the importance of and are directly involved in guiding and directing the local tax authorities. There is a lack of specific assignments and delegations of tasks to each department and officer responsible for managing businesses. The establishment of directive boards and task forces within the Departments of Taxation to implement the issuance of invoices for each sale at retail petrol stations in accordance with the regulations of Government's Decree 123/2020/ND-CP dated October 19, 2020, has not been effective.

The Departments of Taxation have not effectively advised the People's Committees to direct relevant agencies in the area to coordinate with the tax authorities and establish inter-agency inspection teams to carry out inspections and handle cases of non-compliance or intentional non-compliance with regulations. As a result, petroleum businesses have shown a tendency to delay or not comply with the regulations.

Therefore, once again, the General Department of Taxation requests the Department of Taxation leaders, especially those in provinces and centrally-run cities with a low rate of retail petrol stations implementing the issuance of invoices for each sale (according to Annex 02 attached), to directly and resolutely guide the strict implementation of regulations on invoicing, data connection with tax authorities as stipulated in Decree 123/2020/ND-CP, and the Prime Minister's directions.

Organize the implementation of solutions resolutely, synchronously, and effectively, as directed by the Ministry of Finance and the General Department of Taxation.

Assign specific targets and tasks to each department and officer of the Department of Taxation to enhance the responsibility for performing official duties, strengthen monitoring capabilities, and provide timely support to taxpayers to successfully carry out the issuance of invoices for each sale at retail petrol stations and businesses on the territory.

The Department of Taxation should proactively establish inspection teams or advise the People's Committees of provinces and centrally-run cities to establish inter-agency inspection teams to carry out inspections at retail petrol stations to verify the implementation of invoicing and data connection with tax authorities as stipulated in Decree 123/2020/ND-CP and impose penalties according to the provisions of the law on cases of non-compliance or intentional non-compliance.

At the same time, based on the local situation, the Department of Taxation should proactively advise the People's Committees to consider suspending business activities and revoking licenses and certificates of eligibility to trade in petroleum products in accordance with the regulations of the law for retail petrol stations and petroleum businesses that do not comply with the invoicing regulations by March 31, 2024, as stipulated in the Law on Tax Administration 2019 and Decree 123/2020/ND-CP.

Nguyen Ngoc Que Anh

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