B2B and B2C Electronic Invoicing in Vietnam

In Vietnam, electronic invoicing has been mandatory for all businesses since July 2022, making it one of the pioneering countries in the Asia Pacific region.

Vietnam began its e-Invoicing project in 2018 with the approval of decree 119. According to the new decree the compliance deadline for companies has been extended to two years. The decree represents a decisive step for Vietnam which will serve to advance digitalization and make e-invoicing common practice in the public and private sector (B2B2G). The aim of the decree is to increase business competitiveness  and to combat tax fraud.

Mandatory Electronic Invoicing in Vietnam

Since July 2022, it has been mandatory to issue electronic invoices for organizations, companies, and individuals providing goods or services. 

As of that date, organizations, companies, and individuals that provide goods or services will be required to issue e-invoices. Invoices printed by the taxpayers, pre-printed invoices, and invoices purchased from the tax authority will no longer be valid

To issue e-invoices, taxpayers must first register on the website of the General Department of Taxation (GDT) and receive approval.

The regulations establish two types of invoices: invoices with a GDT identification code and invoices without a GDT identification code.

The identification code is issued by the tax authority using the information provided by taxpayers in the e-invoice. This code must be added to the e-invoice before it is sent to the purchaser.

EDICOM’s clients, will not need to generate identification codes for their invoices since EDICOM operates through a certified channel by Vietnamese Tax Authorities, which simplifies and streamlines the process of generating and integrating e-invoices.

Characteristics of e-Invoicing in Vietnam

In terms of technical requirements, the Ministry of Finance’s Circular N° 68/2019 / TT-BTC elaborates the implementation of e-invocing in Decree 119.

It should be noted that e-invoices in Vietnam must be in XML format, have a digital signature and be archived securely for a period of 10 years.

Taxpayers must transmit data in e-invoices to tax authorities either directly or through an authorized service provider.

The 31st October deadline offers an important window of opportunity to transition to e-invoicing smoothly and securely in accordance with the provisions of Decree 119.

B2C Electronic Invoicing for Point of Sale in Vietnam

Regarding electronic invoicing generated at the point of sale or POS, it is not mandatory but is allowed for certain types of businesses. Companies and individual entrepreneurs who supply goods or services directly to consumers are authorized to use electronic invoices issued from point-of-sale cash registers (Clause 2, Article 8 of Circular 78/2021/TT-BTC). This includes businesses such as shopping centers, supermarkets, retail sale of consumer goods, food and beverages, restaurants, hotels, retail sale of modern medicines, entertainment and relaxation services, and other services.

Electronic invoices generated from cash registers to tax authorities must meet certain conditions:

• The electronic invoice must be recognizable as generated from a POS cash register.
• Digital signatures are optional, not mandatory.
• The expense listed on the electronic invoice can be determined as an expense (in the context of tax obligations) if it is supported by sufficient supporting documentation.

The implementation of electronic invoicing from cash registers was done in two phases:

1. Until the end of 03/2023: impact on restaurants, hospitality, shopping centers, supermarkets, and retailers (B2C).
2. From 01/04/2023: remaining companies and business entities.

EDICOM can help you manage the generation and issuance of B2C invoices in an integrated and automated manner, both to the GDT and sending it to the end customer for download. If you want to learn more about how this process works, please contact us.

What are the requirements for e-Invoicing providers in Vietnam?

Your e-invoicing service provider must comply with all financial, legal and technical requirements stipulated by the tax authority.

Technical requirements for an e-invoicing service provider include guaranteeing the following:

• Secure connectivity. Ensuring connectivity with the GDT 24 hours a day, 7 days a week.
• Multi-device access. Supporting a range of different types of devices, such as users’ computers, tablets and smart phones.
• Secure connections. Maintaining the confidentiality and integrity of data exchanged between participants.
• Having a data recovery system.
• Invoice preservation. Offering electronic invoice storage and preservation services that guarantees the security and integrity of your documents. Data stored must also be available for online consultation.
• Your provider must comply with all requirements on data connection standards issued by the Ministry of Finance.

EDICOM, the leading partner for electronic invoicing in Vietnam

For companies and organizations operating in Vietnam, EDICOM offers a technological solution that adapts to the country's requirements, both in the B2B and B2C sectors. Here's how the process works:

• The platform integrates with the company's management system or ERP and receives the required data from the client.
• EDICOM transforms the data into the XML format defined by the GDT.
• A digital signature and a unique identification code are applied to the structured invoice.
• It is sent to the GDT for validation.
• Once validated, the document is received and integrated back into the company's ERP.
• In parallel, EDICOM provides services that allow the validated invoice to be automatically sent to the recipient as well.

EDICOM is an EDI (electronic data interchange) and e-Invoicing provider serving businesses and public entities in more than 60 countries. EDICOM’s global e-Invoicing platform adapts to the wide-ranging technical and legislative particularities of each country to ensure compliance with e-invoicing requirements.

EDICOM develops its solutions as an ASP (application service provider) and guarantees 99.9% system availability and access to the service from anywhere in the world thanks to its robust infrastructure.

EDICOM also offers a storage service for original invoices sent and received. The service allows all stored e-invoices to be viewed, managed and retrieved quickly and easily.

EDICOM, a provider of Electronic Data Interchange (EDI) services and electronic invoicing, serves companies and public organizations in over 80 countries, ensuring full compliance with electronic invoicing regulations.

What are the advantages of e-Invoicing?

Implementation e-Invoicing offers many advantages to businesses that add up to reduced costs.

• These include direct savings by eliminating paper, printing, sending invoices by mail, storing them, etc.
• Automating the process also means increased productivity in administrative departments and frees up more time for other tasks.
• Automation and integration of invoice reception processes. E-documents can be automatically integrated with in-house systems and accounting. Invoices are prepared for payment with almost no human involvement.
• Increased efficiency and elimination of human error as a result of automation and fully integrated processing.
• Shorter delivery and payment times. Issuing and receiving processes are more efficient and immediate. Eliminates errors in generating invoices and entering them into accounting. Reduces payment times.
• Greater security. Invoices are sent on private networks or using specific protocols like AS2, FTPS, Web Services, VAN (Value Added Network), etc. Digital signatures also ensure the integrity, origin and authenticity of invoices.
• Flexible and secure storage in accordance with legal provisions. Original and signed documents are stored at least for the time stipulated by current applicable legislation. This reduces storage costs and makes consulting old invoices easier.
• Eliminates risk losing physical documents by means of secure storage and viewing invoices electronically.