Vietnam: Principles of e-invoicing, use and management of e-invoices

According to Decree No. 119/2018/ND-CP of Vietnam’s Government, e-invoicing, use and management of e-invoices must comply with the following principles:

1. When selling goods and providing services, the seller (except business households or individuals defined in clause 6 Article 12 of this Decree) must issue an authenticated or unauthenticated e-invoice to the buyer by using the standard data format regulated by the tax authority and fill in all information required by this Decree, irrespective of value of each sale or provision.

In case of using the POS cash register for sale of goods or provision of services, the seller must apply for registration for use of e-invoices sent by the POS cash register with network connection for online transfer of electronic data to the tax authority.

2. Registration, management and utilization of e-invoices for sale of goods or provision of services must conform to legislative regulations on electronic transactions, accounting, taxation and those provisions laid down herein.

3. The e-invoice data about sale of goods or provision of services shall be collected to build the e-invoice database used for the purposes of tax management and meeting the needs of concerned organizations or individuals for e-invoice information.

4. Issuing the tax authority's authentication code available for use in an e-invoice shall be based on the information that enterprises, business organizations, households and individuals write on that e-invoice.

5. An e-invoice that is created by a POS cash register with network connection for transfer of electronic data to the tax authority shall conform to the following principles:

- That e-invoice must be recognizable as the e-invoice printed by a POS cash register with network connection for transfer of electronic data to the tax authority;

- Digital signature on that e-invoice can be optional;

- The spending on provision of goods or services written in the invoice (or is described in the scanned invoice or the information search result on the e-invoice page in the Web Portal of the General Department of Taxation) which is created a POS cash register may be defined as an expense that is supported by an adequate number of legal invoices and evidencing documents upon determination of tax obligations.

Decree No. 119/2018/ND-CP of Vietnam’s Government takes effect from November 01, 2018.

- Thanh Lam -

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