Vietnam

Implementation of mandatory e-invoicing in Vietnam

• July 1, 2022: E-invoicing became mandatory for the majority of businesses operating in Vietnam. Companies are required to issue electronic invoices with a unique tax authority code, using formats prescribed by the General Department of Taxation (GDT).
• January 1, 2025: Real-time clearance of e-invoices becomes mandatory. All invoices must be submitted to the GDT for validation before being issued to buyers. This applies to all businesses registered for VAT and ensures full transparency and auditability of B2B transactions.
• Planned future developments: Vietnam plans to expand the system further by integrating all B2B and B2G transactions into a centralized national tax platform. The goal is to replace unstructured formats (PDF, paper) entirely, enabling a fully digital and standardized invoicing environment nationwide.

Who needs e-invoices in Vietnam?

• Domestic Businesses: All VAT-registered businesses must issue e-invoices for domestic transactions.
• Exporters: E-invoicing is mandatory for cross-border transactions to ensure compliance with tax reporting.
• Non-Resident Businesses: Entities registered for VAT in Vietnam must issue e-invoices for transactions within the country.

E-Invoicing vs. E-Billing

Key features of Vietnam’s e-invoicing system

• Submission Platform: Businesses must submit invoices in XML format through the GDT platform.
• Validation: The GDT validates invoices to ensure compliance with tax regulations and issues a unique invoice code
• Archiving: E-invoices must be stored electronically for at least 10 years in accordance with Vietnamese tax laws.

E-invoicing dataset

• Buyer/Seller IDs: Taxpayer identification numbers.
• Invoice Details: Invoice number, issue date, and payment terms.
• Goods and Services: Line-item descriptions, quantities, unit prices, and subtotals.
• Taxes: Applicable VAT rates and amounts
• Transaction Info: Total payable amount, currency, and payment method
• Digital Signature: Ensures authenticity and integrity of the invoice

E-invoicing across transaction types

• Mandatory e-invoicing ensures compliance with tax regulations and streamlines VAT refunds for domestic and cross-border transactions.
• E-invoices facilitate efficient record-keeping and auditing processes.

• E-invoicing is mandatory for all B2C transactions, including retail and service industries.
• Simplified e-invoices are used for small-scale transactions.

• Mandatory for suppliers to government entities, requiring submission through the GDT platform to ensure compliance and transparency.

Penalties for non-compliance

• Fines: VND 10 million–50 million (€400–€2,000) per violation.
• Operational Challenges: Rejected invoices can disrupt payments and business operations.
• Legal Risks: Increased audits and reputational damage for repeated violations.