Send Invoice in Vietnam

Vietnam has embraced electronic invoicing (e-invoicing) as a cornerstone of its tax modernization and digital transformation agenda, making it mandatory for most businesses since July 1, 2022. The primary goal of this shift is to enhance fairness and transparency in taxation, reduce fraud, improve tax collection efficiency, and gain real-time oversight of transactions by transitioning from paper to electronic invoices.

The journey toward mandatory e-invoicing began with Decree 119/2018, which initially aimed for nationwide adoption by November 1, 2020. However, to allow businesses more preparation time and align with the new Tax Administration Law, Decree 123/2020/ND-CP postponed the mandate to July 1, 2022. This decree, along with Circular 78/2021/TT-BTC issued by the Ministry of Finance, established the foundational guidelines for e-invoicing implementation.

Recent legislative updates, particularly Decree No. 70/2025/ND-CP (amending Decree 123) and Circular No. 32/2025/TT-BTC (replacing Circular 78), effective June 1, 2025, have further refined the e-invoicing framework. These updates aim to improve clarity, align with the amended VAT Law, enhance tax administration efficiency, and adapt to the increasing use of e-invoices and digital transactions. Key changes include expanding the scope to foreign suppliers in e-commerce and digital platforms, and requiring high-revenue and consumer-facing businesses to integrate Point of Sale (POS) systems with the e-invoice platform for real-time data transmission. Businesses can stay updated by regularly checking announcements from the General Department of Taxation (GDT) and consulting with accredited e-invoicing service providers.

In Vietnam, e-invoices are primarily categorized into two main types based on their authentication status: authenticated e-invoices and unauthenticated e-invoices. Understanding these distinctions is crucial for businesses to ensure compliance.

• Authenticated E-Invoice: This type of e-invoice is granted a unique authentication code by the tax authority (General Department of Taxation - GDT) before it is sent to the buyer by the seller. These invoices are typically used by most enterprises and economic organizations when selling goods or providing services, regardless of the transaction value, unless specifically exempted. The GDT code acts as a verification mechanism, confirming the invoice's legitimacy and integrity.
• Unauthenticated E-Invoice: These e-invoices are sent directly to the buyer by the seller without prior authentication from the tax authority. Certain businesses in regulated sectors or those with robust internal controls may be permitted to issue unauthenticated e-invoices. However, even these invoices must still be reported to the GDT, either asynchronously after issuance or periodically alongside VAT returns. Approval from the tax authority is required for businesses to issue invoices without the GDT code.

Beyond these two main categories, e-invoices also have various applications depending on the purpose of usage, as outlined in Decree 123 (amended by Decree 70). These include:

• E-VAT Invoices: Used for transactions where the VAT deduction method is applied, such as domestic goods/services, international transport, and exports. This now also encompasses e-commerce and digital platform services provided by foreign suppliers without a permanent establishment in Vietnam.
• E-Sales Invoices: Applicable for businesses using the direct VAT method or for specific transactions like public property sales.
• E-Invoices generated from POS cash registers: With Decree 70/2025/ND-CP, the use of e-invoices generated by cash registers is mandatory for companies in retail, hospitality, catering, food services, and personal services sectors, provided their annual revenue exceeds VND 1 billion. These cash registers must be electronically connected to the GDT system for real-time data transmission. For these specific e-invoices, digital signatures are optional, not mandatory.

All e-invoices, regardless of type, must be issued in XML format and include a digital signature (except for POS-generated invoices) to ensure authenticity and integrity.

Registering for e-invoicing in Vietnam involves a structured process through the General Department of Taxation (GDT) to ensure compliance. All businesses must register on the GDT website and obtain approval before they can legally issue electronic invoices.

Here's a detailed walkthrough:

• Determine Document Types and Issuance Method: Before initiating registration, businesses must decide which e-invoice document types they need to issue (e.g., authenticated or unauthenticated) and select an issuance method. Options include direct integration via API, using an accredited service provider, or manually uploading XML invoices to the GDT portal.
• Prepare Registration Form: Companies must prepare the registration form for using e-invoices, typically Form No. 01/DKTD-HDDT, found in Appendix IA of the relevant decree. This form requires specific information, including the chosen invoice type (with or without the tax authority's authentication code), an active email address for GDT notifications, and other related details.
• Obtain a Digital Signature: A valid digital signature is mandatory for most e-invoices in Vietnam (except for POS-generated ones) to ensure authenticity and integrity. Businesses need to procure this from a GDT-approved provider. Local accredited service providers often assist with this acquisition and the overall registration process.
• Submit Application to GDT: The completed registration form, along with a decision on the application and an e-invoice template, must be submitted to the GDT. This can often be done through an e-invoice service provider.
• GDT Review and Approval: Upon receiving the application, the tax authorities are expected to review it and provide an electronic notice of approval or refusal, typically within one working day. Once approved, the business is officially permitted to issue electronic invoices.

Common challenges during registration can include ensuring all documentation is correctly prepared and understanding the nuances of different e-invoice types. Partnering with an experienced e-invoicing service provider can significantly streamline this process and help overcome potential hurdles.

Ensuring that e-invoices contain all mandatory information and adhere to Vietnamese standards is critical for compliance and avoiding penalties. The General Department of Taxation (GDT) mandates specific content requirements to maintain transparency and facilitate tax administration.

As per Article 10 of Decree 123, amended by Decree 70, an eligible e-invoice must contain the following information:

• Name of e-invoice and serial number: Clearly identifying the document type and its series.
• E-invoice number: A unique identifier for each invoice.
• Seller's Information: Including the name, address, and tax code number of the seller.
• Buyer's Information: Including the name, address, and tax code number of the buyer. For B2C transactions, if requested by the buyer, their personal identification number or telephone number may also be included.
• Electronic Signature: A digital signature by the seller is mandatory for most e-invoices to ensure their integrity and authenticity. For POS-generated invoices, digital signatures are optional.
• Issuance Date: The date the e-invoice is issued.
• Signature Date: The date the e-invoice is signed.
• E-invoice Provider Information: Name and tax code of the e-invoice service provider, if applicable.
• Transaction Details: A clear description of goods or services, including unit price, quantity, and payment price. Specific cases have additional requirements; for example, food and beverage service invoices must show the items, and transportation service invoices must include the vehicle's plate number and voyage details.

The mandated format for e-invoice data in Vietnam is XML. This standardization ensures consistent data exchange with the tax authorities. Businesses must extract and transmit e-invoice data in this format. Best practices for maintaining compliance include regularly verifying that all required fields are accurately populated, ensuring digital signatures are valid and current, and utilizing GDT-approved e-invoicing software or service providers that automatically adhere to the latest technical and legal standards. Electronic invoices must also be securely stored for a period of 10 years.

Non-compliance with Vietnam's e-invoicing regulations can lead to significant penalties, underscoring the importance of strict adherence to the established legal framework. The government is committed to enforcing these regulations to maintain tax transparency and combat fraud.

Penalties can arise from various violations, including:

• Failure to issue e-invoices: Businesses that do not transition from paper to electronic invoices or fail to issue e-invoices for transactions when required face fines.
• Incorrect timing of invoice issuance: Decree 70/2025/ND-CP amends Article 9 of Decree 123/2020/ND-CP, setting specific timelines for invoice issuance. For instance, invoices for goods sales are issued when ownership transfers, regardless of payment, and for services, when the service is completed. Violations of these timelines can incur penalties.
• Using incorrect e-invoice types: Issuing an unauthenticated e-invoice when an authenticated one is required, or vice-versa, without proper authorization, can lead to fines.
• Non-sequential invoices: Invoices must be issued in a sequential order, and deviations can be penalized.
• Unsubmitted e-invoice data: Failure to transmit e-invoice data to the tax authorities, either directly or through an authorized service provider, is a serious violation.
• Using fraudulent or illegal invoices: This includes using counterfeit invoices, invoices for smuggled goods, or those associated with high tax risk, which can result in severe penalties.

While specific monetary penalty rates can vary based on the severity and nature of the violation, they are designed to deter non-compliance. For example, businesses might face administrative fines for minor infractions, while more serious offenses, such as using fraudulent invoices, could lead to higher fines, suspension of e-invoice use, or even criminal charges in extreme cases.

To avoid penalties, businesses should:

1. Stay Informed: Regularly monitor updates from the GDT regarding e-invoicing regulations, especially with recent decrees like Decree 70/2025/ND-CP.
2. Implement Robust Systems: Utilize GDT-approved e-invoicing software or service providers that ensure automatic compliance with formatting, content, and reporting requirements.
3. Conduct Internal Audits: Periodically review e-invoicing processes to identify and rectify any potential compliance gaps.
4. Train Staff: Ensure all relevant personnel are well-versed in the latest e-invoicing procedures and requirements.

Proactive compliance and a clear understanding of the regulations are the best preventative measures against enforcement actions.