Vietnam electronic invoice rules for businesses

Vietnam electronic invoice rules already let a business issue invoices as data instead of paper. The base law is Decree 51/2010/ND-CP, later amended by Decree 04/2014/ND-CP, and the Ministry of Finance guides it in circulars. Use of e-invoices is allowed, not forced, for most firms today. A company that wants to switch must meet set conditions and tell its tax office first.

Source: Decree 51/2010/ND-CP on invoices for sold goods and provided services, and Decree 04/2014/ND-CP amending it, Government of Vietnam.

What counts as an e-invoice

An electronic invoice is a set of data about a sale of goods or services. The seller creates it, sends it and stores it by electronic means. It is not a scan or a photo of a paper invoice. It is born digital.

The rules give it the same legal value as a paper invoice, as long as it carries the required details. These include the invoice name, the form symbol, the serial number, the seller and buyer names and tax codes, the goods or services, the price, the value added tax, and the date. It must also show the electronic signature of the seller.

That signature is what makes the file trusted. It shows who issued the invoice and proves nobody changed it afterward. Without it, the file has no value as a tax document.

Source: Decree 51/2010/ND-CP and Circular 32/2011/TT-BTC on creating, issuing and using electronic invoices, Ministry of Finance.

Who may issue them

Under the Ministry of Finance guidance, a business that sells goods or services may choose e-invoices if it meets the conditions. Companies that cannot, or do not want to, can keep using other forms. Those forms are invoices a business prints itself, invoices it orders from a printer, and invoices it buys from the tax office.

The choice is the seller's. A buyer cannot force a seller to use one form or another. But a buyer who gets an e-invoice may ask for a paper copy for record keeping, and the seller can convert the file to paper for that purpose.

Small firms often stay with paper because it is simple. Larger firms with many daily sales have more to gain from going electronic.

Source: Circular 32/2011/TT-BTC, Ministry of Finance, and Decree 04/2014/ND-CP, Government of Vietnam.

What a business needs before it starts

Four things matter most.

• A digital signature certificate. It must come from a certification provider licensed in Vietnam.
• Software that can create, send and store invoices in the format the rules describe.
• A way to number invoices in order, without gaps or repeats.
• A system to keep the data safe and make it readable again for the tax office when asked.

The business must also notify its tax office that it will use e-invoices. The notice names the form and describes the system. Only after that notice may it issue the first invoice. Keep a copy of every document you file.

Ask your software vendor to confirm in writing that the system follows the Ministry of Finance rules. If the vendor cannot, pick another one.

Source: Circular 32/2011/TT-BTC, Ministry of Finance.

How to run it day to day

Once approved, the seller issues an invoice at the time of sale, signs it and sends it to the buyer. The seller keeps the electronic file as the original. Storage is the seller's duty, and the data must stay complete and readable for the full legal retention period.

Never issue two invoices for one sale. If a mistake happens, do not delete the file. The rules ask for a written record of the error and a corrected or replacement invoice, with both linked to each other. Keeping that trail protects the business in a tax audit.

Buyers should check three things on every e-invoice they receive: the seller tax code, the signature, and the amounts. A valid signature matters for the buyer too, since the invoice supports a claim for input value added tax.

Source: Decree 51/2010/ND-CP and Circular 32/2011/TT-BTC.

Practical steps for this quarter

Do not wait for a deadline that has not been set. A sensible plan is short and can start now.

• Count how many invoices you issue each month. A high number is the best reason to switch.
• Ask two or three vendors for a demo and a written statement on legal compliance.
• Check what your customers want. Some large buyers prefer e-invoices because they are easy to file.
• Talk to your accountant or your tax office before you buy anything.
• Run a small test with one product line before moving every sale.

Rules in this area change over time, so check the current text of the decree and circulars before you act. This article is general information, not legal or tax advice.

Source: Decree 51/2010/ND-CP, Decree 04/2014/ND-CP and Circular 32/2011/TT-BTC.

Sources

• Decree 51/2010/ND-CP on invoices for sold goods and provided services, Government of Vietnam.
• Decree 04/2014/ND-CP amending Decree 51/2010/ND-CP, Government of Vietnam.
• Circular 32/2011/TT-BTC on electronic invoices, Ministry of Finance.