What is an Electronic Invoice?

Electronic Invoice is a collection of electronic data messages regarding the sale of goods and the provision of services, generated, prepared, sent, received, stored, and managed electronically. Decree 04/2014/ND-CP stipulates: "Business organizations may simultaneously use multiple forms of invoices. The government encourages the use of electronic invoices." Given that this is a transaction form implemented by electronic means, it is governed by the Law on Electronic Transactions and related guiding documents. It can be said that the use of electronic invoices brings many practical benefits, so it is encouraged by the government.

Electronic invoices include the following types:

- Export invoice;- Value-added tax invoice;- Sales invoice;- Other invoices including: stamps, tickets, cards, insurance collection receipts, etc.;- Collection receipt for air freight, international transport fee collection documents, banking service fee collection documents.

According to Circular 32/2011/TT-BTC, the content of an electronic invoice must include the following elements:

- Invoice name, invoice code, form code, invoice serial number;- Invoice code, form code, and serial number in accordance with Appendix No. 1 of Circular No. 153/2010/TT-BTC of the Ministry of Finance;- Name, address, tax code of the seller and the buyer;- Name of goods and services; unit of measure, quantity, unit price of goods, and services; total amount in numbers and in words.

For value-added tax invoices, in addition to the unit price excluding VAT, there must be a line for VAT rate, VAT amount, total amount payable in numbers and in words.- Electronic signature as prescribed by law of the seller and the buyer;- Date of preparation and transmission of the invoice.- The invoice is presented in Vietnamese. If there is a need to include foreign language text, the way of writing the foreign text must comply with certain conditions as prescribed.

For certain cases where electronic invoices do not fully contain the mandatory contents, specific guidance from the Ministry of Finance will apply.

When choosing to use electronic invoices in sales transactions of goods and services, the seller is responsible for notifying the buyer of the electronic invoice format, the method of transmitting and receiving the electronic invoice between the seller and the buyer. The seller, buyer, intermediary organizations providing electronic invoice solutions, and other related entities must reach an agreement on technical requirements and conditions ensuring the integrity and security related to the electronic invoice.

An electronic invoice is legally valid if it simultaneously meets the following conditions:

- There is a reliable guarantee on the integrity of the information contained in the electronic invoice from the moment the information is generated in its final form as an electronic invoice.

The criterion for assessing integrity is that the information is still complete and has not been altered, except for changes in appearance arising during the process of exchanging, storing, or displaying the electronic invoice.- The information contained in the electronic invoice can be accessed and used in a complete form when necessary.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE