Mandatory file format:
- Local XML from 2022
- The General Department of Taxation portal
- 10 Year Period
Navigating the global tax compliance landscape successfully is complex and resource-intensive. Every country has a specific and constantly evolving set of legislated e-invoicing requirements.
Non-compliance, intentional or not, can result in significant financial penalties, business disruption, and reputational damage.
- Country updates
- VAT/G(S)ST rate information
- The VAT for goods and services is reduced from 10% to 8%.
- This change will be effective from 1 February 2022 to 31 December 2022.
- Mandate information
In Vietnam, the Ministry of Finance has issued Circular 78/2021 on 17 September 2021 to guide the implementation of several articles of the Law on Tax Administration and the Government’s Decree 123 on invoices and documents.
The following are some noteworthy points from the circular:
- For business using e-invoice without verification code, the e-invoice data must be transmitted to the tax authority within the date the e-invoice is sent to the buyer at the latest, except for certain sectors such as telecommunication, insurance, banking, air transportation, securities, etc.
- If an enterprise uses e-invoices without verification code and would like to switch to e-invoices with verification code, they should follow the guidelines outlined in Article 15 of Decree 123/2020.
- When an e-invoice has errors that must be corrected or replaced, buyer can choose to notify the amendment for each e-invoice with errors or for multiple e-invoices with errors using a prescribed form. This form must be submitted to the tax authorities by the last day of the VAT declaration period.
- Mandate information
In 2020, Vietnam delayed its implementation date of mandatory electronic invoicing until July 1, 2022. So far, we have not heard signals that suggest any further delay.
From July 2022, paper and PDF invoices no longer qualify as valid tax invoices. Under the mandate, the e-invoice must be in XML format, include a digital signature and be securely stored for ten years. In addition, Invoices need to be in Vietnamese language; a second language is allowed. The second language needs to be placed in brackets next to the Vietnamese texts or under the Vietnamese texts using a smaller font.
There will be two types of e-invoices: the e-invoice with tax verification code and e-invoice without tax verification code. The process with the tax verification code is so -called pre-clearance where invoice data must be submitted to the tax office (GDT- General Department of Tax). Upon registration and approval of the invoice data, the tax office returns a specific code that needs to be included in the invoice that is sent to the buyer. The requirement to add a tax verification code to the invoices depends on the taxpayer’s business sector, tax risk, and annual revenue.
To use either type of e-invoice in Vietnam, companies must register and receive approval from the Vietnamese tax authorities via the website of the General Taxation Department.
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