Create Invoice for Vietnam

To ensure your invoices comply with Vietnamese law, they must contain specific mandatory information and adhere to prescribed formats. Since July 2022, electronic invoicing has been mandatory for all businesses in Vietnam.

Here's a checklist of essential elements:

1. Mandatory Information: Each e-invoice must include the invoice name, serial number, unique e-invoice number, and comprehensive details for both the seller and buyer (name, address, and Tax Identification Number - TIN).
2. Transaction Details: A clear description of the goods or services, unit of measure, quantity, and unit price (excluding VAT), along with the applicable VAT rate(s) and total payment, are required.
3. Language and Format: All details of goods and services must be presented in Vietnamese. If a foreign language description is necessary, it should be placed in parentheses or below the Vietnamese text, using a smaller font size. The valid format for electronic invoices is XML.
4. Dates and Signatures: The e-invoice must specify the issuance and signing dates, and include the electronic signatures of the seller. While a buyer's electronic signature is not always mandatory, parties can agree to include it.
5. Compliance with Circular 68/2019/TT-BTC: This circular, effective from November 14, 2019, provides detailed guidance on the registration, issuance, and management of e-invoices, including content requirements and error handling.

Businesses with an annual turnover of less than VND 3 billion typically use "coded e-invoices" which include a verification code from the tax authorities, while larger businesses often use "uncoded e-invoices."

Choosing a free online invoice generator for Vietnam requires focusing on tools that specifically support local compliance. The right generator will streamline your invoicing process while ensuring legal adherence.

Consider these criteria when making your selection:

1. Vietnamese Compliance Support: Prioritize generators that explicitly state compliance with Vietnamese e-invoicing regulations, including the mandatory XML format and requirements outlined in Circular 68/2019/TT-BTC.
2. Template Availability and Customization: Look for tools offering pre-designed templates that incorporate all required fields for Vietnamese invoices, such as seller/buyer TINs, detailed goods/services descriptions in Vietnamese, and VAT breakdowns. The ability to customize these templates to include specific business information or branding is also beneficial.
3. Ease of Use and Data Handling: An intuitive interface that simplifies data entry and invoice generation is crucial. Ensure the generator allows for easy input of Vietnamese characters and supports the correct display of currency (VND) and payment terms. Some platforms may even offer free authenticated e-invoices via the General Department of Taxation (GDT) or entrusted providers.
4. Export and Reporting Capabilities: The tool should allow you to export invoices in the required XML format for submission to tax authorities, either directly or through an authorized service provider.

Navigating Vietnamese invoicing regulations can be complex, and certain common errors can lead to non-compliance and potential penalties. Being aware of these pitfalls can help you maintain audit-ready records.

Here are key mistakes to avoid:

• Incorrect Currency Conversion and Foreign Exchange: Always ensure the currency stated on your invoice matches the currency on the corresponding purchase order. Inconsistencies can lead to processing delays and discrepancies in financial records.
• Failure to Maintain Electronic Records: Vietnamese law mandates that electronic invoices must be securely stored and archived for a period of 10 years for tax audit purposes. Neglecting this can result in significant issues during an audit.
• Misunderstanding Circular 68/2019/TT-BTC Implications: This circular details how to handle errors. Minor mistakes, such as only in the buyer's name or address (with correct tax code), may only require a notification to the tax authorities and the buyer. However, errors related to the tax code, invoice amount, tax rate, or goods description necessitate issuing a new replacement e-invoice.
• Using Outdated Invoice Formats: Since July 2022, electronic invoicing is mandatory, and previously accepted paper invoice formats are no longer valid. Ensure all your invoices are issued electronically.
• Improper Data Transmission: Businesses are required to transmit electronic invoice data to tax authorities, either directly or through authorized service providers. Failure to do so can result in compliance issues.