Vietnam VAT B2B e-invoices

Phase 2 of electronic invoicing April to July 2022

Following the November 2021 launch of e-invoicing in six cities, it will be extended to further 57 cities of Vietnam between 1 April and 1 July 2022. This will include the option to transmit electronic invoices directly to the government instead of via an authorised intermediary as with Phase 1.

Phase 1: delayed mandatory B2B electronic invoicing November 2021 go-ahead

Vietnam General Department of Taxation (GDT) has commenced the 2-phased implementation of mandatory pre-clearance e-invoicing between November 2021 and April 2022. This started in six cities. It had already been delayed from 1 November 2020 due to the COVID-19 crisis.

The GDT has been anxious to complete the e-invoice roll out as the current paper-based system is highly susceptible to fraud and is cumbersome to manage for taxpayers and the GDT to administer.

You can follow VAT Calc’s global live VAT invoice transaction and e-invoice blog with country-by-country real-time reporting plans.

Phase 2: e-invoicing to complete between April and July 2022

Vietnam already has paper-based GDT-controlled invoicing system. Taxpayers may only use GDT printed (or printed on GDT approved special printers) invoices with an authentication code. These may still be used until July 2022. The two phases are:

1. November 2021 in major conurbations, including: Hanoi, Ho Chi Minh City, Hai Phong, Quang Ning, Phu Tho, and Binh Dinh; and
2. April to July 2022: remaining 57 provinces.

However, any business incorporated since 19 October 2020 must use the new e-invoicing regime now. In addition, GDT may switch other businesses now if they exhaust their paper invoice supply.

E-invoice process

Invoices must contain the basic VAT information in XML, plus a secure digital signature held for at least 10 years. The following businesses must also obtain a GDT verification code:

1. self-employed
2. larger businesses (threshold in excess of VND 10billion) and
3. high tax risk enterprises with a poor compliance record

Businesses may deal directly with the GDT from Phase 2, requiring direct registration, under strict rules on e-invoice up-time, creation, storage and backup. Alternatively, they may engage authorised e-invoicing third-party agents.

Categories of documents including in e-invoicing

The following documents are included within the requirements

• Value-added tax (VAT) e-invoice;
• Sales e-invoice;
• Sales of public property e-invoice;
• National reserve sales e-invoice;
• Electronic stamps, electronic tickets, electronic cards, electronic receipts, and other electronic documents with e-invoice content; and
• Electronic warehouse delivery/transportation notes and electronic delivery notes sent to agents.

For e-invoicing, it is imperative to get VAT calculations correct. VAT Calc’s in real-time global Calculator and Auditor  services produce instant and accurate tax calculations into your ERP, billing, e-commerce or e-invoicing systems.

Asia Pacific e-invoicing