From November 01, 2020, electronic invoices in Vietnam are applied according to the following documents

From November 01, 2020, electronic invoices in Vietnam are applied according to the following documents​ (Illustration)

Based on Article 35 of Decree 119/2018/ND-CP regulating electronic invoices when selling goods, providing services:

Article 35. Implementation Effectiveness

1. This Decree shall come into force from November 1, 2018.

2. The organization of electronic invoices, electronic invoices with the tax authority's code as stipulated in this Decree must be completed for businesses, economic organizations, other organizations, households, and individual businesses no later than November 1, 2020.

3. During the period from November 1, 2018, to October 31, 2020, the Decrees: No. 51/2010/ND-CP dated May 14, 2010, and No. 04/2014/ND-CP dated January 17, 2014, of the Government of Vietnam regulating invoices for selling goods, providing services are still in effect…

Simultaneously, in Circular 68/2019/TT-BTC guiding the implementation of some articles of Decree 119/2018/ND-CP, the transitional handling has been regulated as follows:

2. From November 1, 2018, to October 31, 2020, to prepare conditions for physical infrastructure, information technology technology to register, use, lookup, and transfer data for electronic invoices as stipulated in Decree 119/2018/ND-CP, while the tax authority has not notified businesses, economic organizations, other organizations, households, and individual businesses to switch to using electronic invoices according to Decree 119/2018/ND-CP and the guidance in this Circular, businesses, economic organizations, other organizations, households, and individual businesses shall continue to apply invoices according to Decree 51/2010/ND-CP dated May 14, 2010, Decree 04/2014/ND-CP dated January 17, 2014, and other guiding documents of Decree 51/2010/ND-CP, Decree 04/2014/ND-CP.*

However, in Clause 2, Article 151 of the Law on Tax Administration 2019, which takes effect from July 1, 2020:

Article 151. Implementation Effectiveness

…2. The regulations on electronic invoices and documents of this Law take effect from July 1, 2022; encouraging agencies, organizations, and individuals to implement the regulations on electronic invoices and documents of this Law before July 1, 2022.*

Additionally, Decree 123/2020/ND-CP guiding the application of electronic invoices to match the Law on Tax Administration 2019 stipulates as follows:

This Decree shall take effect from July 1, 2022, encouraging agencies, organizations, and individuals meeting the conditions for information technology infrastructure to apply the regulations on electronic invoices and documents of this Decree before July 1, 2022.*

Decree No. 51/2010/ND-CP dated May 14, 2010, of the Government of Vietnam regulating invoices for selling goods, providing services, Decree No. 04/2014/ND-CP dated January 17, 2014, of the Government of Vietnam amending and supplementing several articles of Decree No. 51/2010/ND-CP regulating invoices for selling goods, providing services, Decree No. 119/2018/ND-CP dated September 12, 2018, of the Government of Vietnam regulating electronic invoices when selling goods, providing services will continue to be effective until June 30, 2022.*

Abolish Clause 2 and Clause 4, Article 35 of Decree No. 119/2018/ND-CP dated September 12, 2018, of the Government of Vietnam regulating electronic invoices from November 1, 2020.*

Thus, the mandate to apply electronic invoices from November 1, 2020 in Decree 119/2018/ND-CP has been canceled. The official application of electronic invoices will start from July 1, 2022 when Decree 123/2020/ND-CP takes effect.

According to the regulations mentioned above, from November 1, 2020, the application of electronic invoices in Vietnam will be as follows:

1. Law on Tax Administration 2019;
2. Decree 119/2018/ND-CP;
3. Circular 68/2019/TT-BTC;
4. Decree 51/2010/ND-CP;
5. Decree 04/2014/ND-CP.

Note: Decree 119/2018/ND-CP, Decree 51/2010/ND-CP, Decree 04/2014/ND-CP will expire on July 1, 2022, when Decree 123/2020/ND-CP officially takes effect, regulating electronic invoices and documents.

The following documents in Vietnam will officially expire from November 1, 2020:

(1) Circular 32/2011/TT-BTC dated March 14, 2011, of the Ministry of Finance guiding the creation, issuance, and use of electronic invoices for selling goods and providing services;

(2) Circular 191/2010/TT-BTC dated December 1, 2010, guiding the management and use of transportation invoices;

(3) Circular 39/2014/TT-BTC dated March 31, 2014, of the Ministry of Finance (amended and supplemented by Circular No. 119/2014/TT-BTC dated August 25, 2014, Circular 26/2015/TT-BTC dated February 27, 2015, of the Ministry of Finance);

(4) Decision 1209/QD-BTC dated June 23, 2015, of the Minister of Finance on piloting the use of electronic invoices with the tax authority’s code, Decision 526/QD-BTC dated April 16, 2018, of the Minister of Finance on expanding the scope of pilot use of electronic invoices with the tax authority’s code;

(5) Decision 2660/QD-BTC dated December 14, 2016, of the Minister of Finance on extending the implementation of Decision 1209/QD-BTC dated June 23, 2015;

(6) Circular 37/2017/TT-BTC dated April 27, 2017, of the Ministry of Finance amending and supplementing Circular 39/2014/TT-BTC dated March 31, 2014, of the Ministry of Finance (amended and supplemented by Circular 119/2014/TT-BTC dated August 25, 2014, Circular 26/2015/TT-BTC dated February 27, 2015, of the Ministry of Finance).

Customers and Members should note the documents expiring from November 1, 2020, and when applying valid documents like Decree 119/2018/ND-CP, also note the abolished clauses. To accurately identify the validity of documents and clauses on electronic invoices, Customers and Members can access the website https://lawnet.vn/ for the most accurate legal document lookup utilities.

Thuy Tram

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