To drastically implement digital transformation, regulations on electronic invoices in Vietnam

Priority order of traffic signal in Vietnam from January 1, 2025 (Image from the internet)

On July 21, 2024, the Prime Minister issued Official Telegram 71/CD-TTg regarding key tasks and solutions to promote growth, control inflation, and stabilize the macroeconomic situation for July and the third quarter of 2024.

To drastically implement digital transformation, regulations on electronic invoices in Vietnam

Official Telegram 71/CD-TTg in 2024 has assigned several key tasks and solutions for July and the third quarter of 2024 as follows:

* Ministry of Finance of Vietnam

- Effectively implement policies to extend tax payment deadlines, land levy, reduce value-added tax rates, reduce fees and charges as promulgated.

- Urgently study the impact, finalize, and propose to the Government of Vietnam a Decree on the registration fee rates for domestically manufactured and assembled automobiles in July 2024.

* State Bank of Vietnam

- Effectively use operating tools to regulate exchange rates, interest rates, in line with macroeconomic developments and set targets to meet the capital needs of the economy; strengthen inspection, control bad debt risks, implement effective measures to handle bad debts, and improve credit quality.

- Continue to direct commercial banks to cut operational costs, enhance the application of information technology, digital transformation to reduce lending interest rates for priority sectors; promote credit growth, focusing on production and business sectors, priority areas, economic growth drivers, prioritizing credit limits for effective credit institutions, especially for social housing, green growth, digital transformation, circular economy...

- Coordinate with relevant agencies to promote a 120 trillion VND social housing credit package, a 30 trillion VND credit package to support agriculture, forestry, and fisheries...

- Strengthen financial discipline and state budget spending. The Ministry of Finance of Vietnam is decisively implementing digital transformation, regulations on electronic invoices, particularly by boosting digital transformation applications in budget revenue and expenditure, enhancing the effectiveness and efficiency of state budget revenue and expenditure management; ensuring accurate, adequate, and prompt revenue collection, expanding the taxable base and preventing tax evasion, especially from e-commerce to compensate for reduced revenue due to support policies, achieving the highest possible revenue estimates.

Thus, in Official Telegram 71/CD-TTg in 2024, the Prime Minister assigned the Ministry of Finance of Vietnam to decisively implement digital transformation, regulations on electronic invoices, particularly by boosting digital transformation applications in budget revenue and expenditure, enhancing the effectiveness and efficiency of state budget revenue and expenditure management.

What is an electronic invoice?

An electronic invoice is an invoice with or without a code from the tax authority, expressed in electronic data form, created by organizations and individuals selling goods or providing services by electronic means to record information about the sale of goods or provision of services as prescribed by the law on accounting and tax laws, including invoices created from cash registers connected to transmit electronic data to the tax authority, wherein:

- An electronic invoice with a tax code is an electronic invoice granted by the tax authority before the organization or individual selling goods or providing services sends it to the buyer.

The tax code on the electronic invoice includes a transaction number that is a unique number generated by the tax authority's system and a string of characters encoded by the tax authority based on the seller's information on the invoice.

- An electronic invoice without a tax code is an electronic invoice sent by the organization selling goods or providing services to the buyer without a code from the tax authority.

(Clause 2 Article 3 Decree 123/2020/ND-CP)

Le Nguyen Anh Hao

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