Vietnam: What is an electronic invoice? What do electronic invoices include?

Vietnam: What is an electronic invoice? What do electronic invoices include? (Internet image)

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

1. What is an electronic invoice?

According to Clause 1, Article 89 of the Law on Tax Administration 2019, an electronic invoice means an invoice in the form of electronic data, issued by the goods seller or service provide to record the goods sale or service provision in accordance with regulations of law on electronic accounting and tax;

Including the invoices generated by cash registers that are digitally connected to tax authorities.

2. What do electronic invoices include?

According to Clause 2, Article 89 of the Law on Tax Administration 2019, electronic invoices include VAT invoices, sale invoices, electronic stamps, electronic tickets, electronic cards, electronic receipts, electronic delivery notes and other electronic documents.

3. Rules for issuance, management and use of electronic invoices in Vietnam

Rules for issuance, management and use of electronic invoices in Vietnam according to Article 90 of the Law on Tax Administration 2019 are as follows:

- When selling goods/services, the seller shall issue and send electronic invoices to buyers. The electronic invoices shall follow standard formats and contain sufficient information in accordance with tax laws and accounting laws, regardless of the value of each sale.

- The sellers that use cash registers shall register to use electronic invoices generated by cash registers that are digitally connected to the tax authorities.

- The registration, management and use of electronic invoices in sale of goods/services shall comply with regulations of law on electronic transactions, accounting and tax.

- Electronic invoices shall be authenticated by tax authorities according to information provided on the invoices by the enterprises, business organizations, other organizations, household businesses and individual businesses.

Enterprises, business organizations, other organizations, household businesses and individual businesses are held responsible for the accuracy of information on their invoices.

4. Use of electronic invoices in sale of goods and services in Vietnam 

The use of electronic invoices in sale of goods and services under Article 91 of the Law on Tax Administration 2019 is as follows:

- Enterprises and business organizations shall use authenticated electronic invoices when selling their goods/services, regardless of the value of each sale, except for the cases specified in Clause 2 and Clause 4 of Article 91 of the Law on Tax Administration 2019.

- Enterprises operating in the field of electricity, oil and gas, post and telecommunications, clean water supply, credit, insurance, health, e-commerce, supermarket, commerce, air/road/rail/sea/inland waterway transport;

Enterprises and business organizations that have been or will conduct electronic transactions with tax authorities, develop information technology infrastructure, have software for accounting, issuance, access and storage of electronic invoices, and ensure the transmission of electronic invoice data to buyers and tax authorities may use unauthenticated electronic invoices when selling goods/services, regardless of the value of each sale, unless tax-related risks are high as prescribed by the Minister of Finance or they wish to use authenticated electronic invoices.

- The household businesses and individual businesses in the cases specified in Clause 5 Article 51 of the Law on Tax Administration 2019 and other cases of determinable revenue from sale of goods/services may use authenticated electronic invoices.

- Regarding household businesses and individual businesses that are not qualified to use authenticated electronic invoices as prescribed in Clause 1 and Clause 3 of Article 91 of the Law on Tax Administration 2019:

Enterprises, business organizations and other organizations that need to provide electronic invoices for their customers, tax authorities shall issue separate authenticated electronic invoices for individual sales, provided tax is declared and paid before such electronic invoices are issued.

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