Handbook | Electronic Invoices for Businesses

According to the Decree, the Government requires that the implementation of electronic invoices in businesses and economic organizations be completed no later than November 1, 2020.

During the period from November 1, 2018 to October 31, 2020, Decree 51/2010/ND-CP and Decree 04/2014/ND-CP remained in effect.

Businesses and economic organizations that have notified the tax authorities of the issuance of pre-printed, self-printed, or purchased invoices may continue to use them until October 31, 2020.

Accordingly, those entities that are required to switch to using electronic invoices should note the following deadlines:

Before 01 / 11 / 2018

Businesses and economic organizations that have notified the issuance of electronic invoices without tax authority codes or have registered to use electronic invoices with tax authority codes before November 1, 2018, may continue to use them.

From February 01, 11 to March 2018, 31

In cases where the tax authority notifies a business to switch to using electronic invoices with codes, but the business does not yet meet the information technology requirements for implementation, it may continue to use invoices in the old format but must submit the form in Appendix 03 and the value-added tax return to the tax authority.

For newly established businesses during this period, if required by the tax authorities to use electronic invoices, they must apply electronic invoices. If they do not yet meet the conditions for applying electronic invoices, they are permitted to use paper invoices as stipulated in Decree 51/2010/ND-CP, and the procedures are the same as those for the businesses mentioned above.

Businesses and economic organizations that have notified the tax authorities of the issuance of pre-printed invoices, self-printed invoices, or have purchased invoices for use before November 1, 2018, may continue to do so until October 31, 2020, and must follow the invoice procedures stipulated in Government Decrees No. 51/2010/ND-CP dated May 14, 2010, and No. 04/2014/ND-CP dated January 17, 2014, regulating invoices for the sale of goods and provision of services.

From date of 01 / 11 / 2020

Businesses, economic organizations, households, and individual business owners must complete the transition to electronic invoices without codes or electronic invoices with tax authority codes as prescribed.

From this date, Decree No. 51/2010/ND-CP and Decree No. 04/2014/ND-CP cease to be in effect.

2. Types of electronic invoices

Electronic invoices include the following types:

1. A value-added tax (VAT) invoice is an invoice applied to sellers of goods and providers of services who declare value-added tax using the deduction method. In this case, VAT invoices include invoices generated from cash registers with electronic data transfer connections to the tax authorities.
2. A sales invoice is an invoice applicable to sellers of goods or providers of services who declare taxes using the direct method. In this case, sales invoices include invoices generated from cash registers connected to the tax authorities for electronic invoice data transfer.
3. Other types of invoices include: electronic stamps, electronic tickets, electronic cards, electronic receipts, electronic delivery and transportation slips, or other electronic documents with different names.

3. Electronic invoice code

The tax authority code on an electronic invoice includes a transaction number, which is a unique sequence of numbers and characters generated by the tax authority based on the seller's information provided on the invoice.

An electronic invoice without a tax authority code is an electronic invoice sent by an organization selling goods or providing services to a buyer that does not have a tax authority code.

An electronic invoice with a tax authority code is an electronic invoice that the tax authority issues a code to before the organization or individual selling goods or providing services sends it to the buyer.

4. Entities using electronic invoices with tax authority codes.

According to Article 12 of this Decree, the entities authorized to use electronic invoices with tax authority codes are:

• Businesses, economic organizations, and other organizations must use electronic invoices with tax authority codes when selling goods or providing services, regardless of the value of each sale or service.
• Businesses, economic organizations, and other organizations classified as high-risk for tax purposes must use electronic invoices with tax authority codes.
• Households and individual businesses that maintain accounting records, regularly employ 10 or more workers, and have revenue of 03 billion VND or more in the preceding year in the fields of agriculture, forestry, fisheries, industry, and construction, or 10 billion VND or more in the fields of trade and services, must use electronic invoices with tax authority codes.
• Households and individual businesses that are not required to use electronic invoices but maintain accounting records may also use electronic invoices with tax authority codes if they so request.
• Households and individuals engaged in business in the fields of restaurants, hotels, retail of consumer goods, pharmaceuticals, and providing services directly to consumers in certain favorable areas are eligible for a pilot program of electronic invoices with tax authority codes generated from cash registers connected to the tax authority starting in 2018.

5. Entities using electronic invoices without a tax authority code.

– Businesses operating in the following sectors: electricity, petroleum, postal and telecommunications services, transportation, clean water, finance, insurance, healthcare, e-commerce, supermarket businesses, trade, and businesses that have or will transact with tax authorities electronically, and have accounting software systems that meet the requirements, are allowed to use electronic invoices without a tax authority code.

However, if businesses are classified as high-risk for tax purposes, they must still use electronic invoices with tax authority codes, regardless of the value of each sale of goods or provision of services.

6. Cancel paper invoices when you start using electronic invoices.

From the time of using electronic invoices with tax authority codes, businesses and economic organizations must cancel any remaining unused paper invoices (Clause 3, Article 14, this Decree). The procedure for canceling paper invoices is carried out according to Decree No. 39/2014/TT-BTC, which requires that invoices be canceled no later than 30 days from the date of notification to the tax authority. Businesses are only allowed to use one form of invoice when issuing them.

7. Electronic invoices are converted into paper documents.

Article 10 of Decree 119/2018/ND-CP on electronic invoices stipulates that legally valid electronic invoices can be converted into paper documents. The conversion must ensure the accuracy and consistency between the content of the electronic invoice and the paper document. Once converted into a paper document, the paper document is only valid for record-keeping and tracking purposes as prescribed, and is not valid for transactions or payments, except in cases where the invoice is generated from a cash register with an electronic data transfer connection to the tax authority.

8. Registering to use electronic invoices without a tax authority code.

Businesses operating in sectors such as electricity, petroleum, postal and telecommunications services, transportation, clean water, finance and credit, etc., and with no tax risks, can access the General Department of Taxation's electronic portal to register for the use of electronic invoices without tax authority codes.

The content of registration information and changes to registered information must follow Form No. 01 in the Appendix issued with this Decree.

The tax authority is responsible for sending a Notice in accordance with Form No. 02 of the Appendix issued with this Decree regarding the acceptance or rejection of the registration for using electronic invoices without a tax authority code via the General Department of Taxation's electronic portal within 1 working day from the date of receiving the registration for using electronic invoices from the enterprise or economic organization.

9. Handling electronic invoices that have been issued without a tax authority code.

– If a business or economic organization has issued an electronic invoice without a tax authority code and sent it to a buyer with errors (discovered by either the seller or the buyer), the seller and the buyer must create a written agreement clearly stating the errors. Simultaneously, the seller must notify the tax authority using Form No. 04 in the Appendix issued under this Decree about the cancellation of the erroneous electronic invoice and the creation of a new replacement electronic invoice to send to the buyer and the tax authority.

– In cases where, after receiving invoice data, the tax authority discovers errors in an issued electronic invoice, the tax authority shall notify the seller using Form No. 05 of the Appendix attached to this Decree so that the seller can check for errors. Within 02 days from the date of receiving the notification from the tax authority, the seller shall notify the tax authority using Form No. 04 of the Appendix attached to this Decree about the cancellation of the electronic invoice without a tax authority code and issue a new electronic invoice to replace the issued invoice and send it to the buyer and the tax authority.

10. Register to use electronic invoices with tax authority codes.

– Businesses, economic organizations, households, and individual business owners who are required to use electronic invoices with tax authority codes as stipulated in Clauses 1, 3, and 4 of Article 12 of this Decree. The registration information must follow Form No. 01 in the Appendix issued with this Decree.

– The tax authority is responsible for sending a Notice in accordance with Form No. 02 of the Appendix issued under this Decree to the enterprise regarding the acceptance or rejection of the registration for using electronic invoices with a tax authority code within 01 day from the date of receiving the enterprise's registration for using electronic invoices.

11. Handling invoices with errors after code issuance.

If an error is discovered in an electronic invoice with a tax authority code that has not yet been sent to the buyer, the seller shall notify the tax authority using Form No. 04 in the Appendix issued with this Decree regarding the cancellation of the erroneous invoice and the creation of a new replacement electronic invoice.

If an electronic invoice with a tax authority code has been sent to the buyer and an error is discovered, the seller and the buyer must prepare a written agreement clearly stating the error. The seller must then notify the tax authority using Form No. 04 in the Appendix attached to this Decree to cancel the erroneous electronic invoice and issue a replacement invoice.

12. Five cases where electronic invoices are issued free of charge.

1. Households and individual businesses (excluding households and individual businesses with revenue of 03 billion VND or more in the preceding year in the fields of agriculture, forestry, industry, and construction, or 10 billion VND or more in the fields of trade and services as stipulated in Clause 4, Article 12 of this Decree)

2. Small and medium-sized enterprises (SMEs) engaged in innovative startups and household businesses or individual entrepreneurs that convert into enterprises within 12 months of their establishment.

3. Small and medium-sized enterprises, cooperatives, and individual businesses operating in areas with difficult or extremely difficult socio-economic conditions.

4. Other small and medium-sized enterprises as proposed by the People's Committee of the province or centrally-administered city and as stipulated by the Ministry of Finance (excluding enterprises operating in economic zones, export processing zones, industrial parks, and high-tech zones).

5. Other entities as decided by the Ministry of Finance. 

II. Frequently Asked Questions When Understanding and Using Electronic Invoices

Question 1: What are the strengths and weaknesses of using electronic invoices?

STT	Strength	Weakness	Overcoming weaknesses
1	Saves time. Shoppers will receive their invoices regardless of their location as long as they have internet access, eliminating the risk of lost invoices.	Businesses must take the initiative in creating and issuing invoices.	Training staff on how to issue invoices is relatively simple once they get used to it.
2	Reduced costs compared to using paper invoices: costs of printing paper, ink, costs of delivering invoices to customers, and costs of storing invoices; reduced time spent searching for invoices…	Businesses need good technical infrastructure, but not all businesses are ready to meet the requirements.	Usually all you need is a computer with an internet connection and a Tokken USB drive.
3	Meets all invoice issuance requirements, just like paper invoices.	Small and medium-sized enterprises (SMEs) are often slow to adopt technology and hesitant to change.	A shift in mindset is necessary, as the output is not being used, and many suppliers are already using electronic invoices. Therefore, to avoid confusion, it's advisable to gradually adapt and change to the trend.
4	Secure and safe invoice data	The level of competence of the workforce required for utilization.	Recruitment and training of personnel.
5	It can be integrated with accounting software and sales software.	Dependence on machinery (power outages; system failures, internet issues) leads to delays in shipping goods.	The problem has not been resolved. This is because small and medium-sized enterprises (SMEs) do not have the necessary infrastructure to equip themselves with generators.
6	It has the same legal validity as a paper invoice and is recognized by law. Related VNPLs: - Decree No. 51/2010/ND-CP dated May 14, 2010 on contracts for the sale of goods and provision of services - Decree No. 04/2014/ND-CP dated January 17, 2014, amending several articles of Decree 51/2010/ND-CP - Circular No. 39/2014/TT-BTC dated March 31, 2015, guiding the implementation of Decree No. 51/2010/ND-CP - Circular No. 32/2011/TT-BTC dated March 14, 2011 on the initiation and issuance of e-invoices - Decree No. 119/2018/ND-CP dated September 12, 2018, regulating electronic invoices for the sale of goods and provision of services.	When using electronic invoices, businesses may not know how to handle several issues, especially in logistics. When transporting goods, invoices are required for inspection by authorities along the way. With electronic invoices, businesses may not know which type of invoice to present. There are also costs associated with verifying and photocopying invoices when partners request paper invoices, leading to wasted time.	According to Article 29 of Decree No. 119/2018/ND-CP, it is stipulated... -When inspecting goods circulating in the market, in cases where electronic invoices are used, the State agency accesses the General Department of Taxation's electronic portal to look up invoices for management purposes, and does not require the provision of paper invoices. -In cases of force majeure or unforeseen circumstances, the search may not be possible if: +If the carrier has a paper document converted from an electronic invoice, they should present the paper document to the state agency. The state agency will then verify the information. If the carrier does not have paper documents, the State agency will check and verify them through the General Department of Taxation's electronic portal.
7	Ensuring greater accuracy and security, and preventing invoice forgery.	For buyers – Invoices received via email may be lost due to insufficient email checking or incorrect email address when sending invoicing information. – When receiving an invoice via email, if you don't monitor it carefully, the invoice may be canceled. However, according to the Decree, if the invoice has already been delivered to the buyer and you want to cancel it, you must send a notification to the tax authorities and a written agreement between the buyer and the seller.	Agree on a single email address to receive invoices and download them for safekeeping (in case the data is deleted).
8	Various methods for sending invoices to customers. - Send invoices to customers via email integrated into the electronic invoicing software - Send via SMS for customer lookup - Export and send to customers via email - Print invoices on paper and send via express delivery

Question 2: What preparations do businesses need to make when registering to use electronic invoices (for electronic invoices without a tax authority code)?

According to Article 20 of Decree 119/2018/ND-CP:

Businesses operating in sectors such as electricity, petroleum, postal and telecommunications services, transportation, clean water, finance and credit, etc., and with no tax risks, can access the General Department of Taxation's electronic portal to register for the use of electronic invoices without tax authority codes.

The content of registration information and changes to registered information must follow Form No. 01 in the Appendix issued with this Decree.

The tax authority is responsible for sending a Notice in accordance with Form No. 02 of the Appendix issued with this Decree regarding the acceptance or rejection of the registration for using electronic invoices without a tax authority code via the General Department of Taxation's electronic portal within 1 working day from the date of receiving the registration for using electronic invoices from the enterprise or economic organization.

Question 3: What preparations do businesses need to make when registering to use electronic invoices (for electronic invoices with a tax authority code)?

Businesses, economic organizations, households, and individual business owners who are required to use electronic invoices with tax authority codes as stipulated in Clauses 1, 3, and 4 of Article 12 of this Decree must register the information according to Form No. 01 in the Appendix issued with this Decree.

The tax authority is responsible for sending a Notice in accordance with Form No. 02 of the Appendix issued under this Decree to the enterprise regarding the acceptance or rejection of the registration for using electronic invoices with a tax authority code within 01 day from the date of receiving the enterprise's registration for using electronic invoices.

Question 4: Are electronic invoices related?

Electronic invoices there is no concept of connectionThe invoice issuer (seller), the invoice recipient (buyer), and the tax authority all access data from a single electronic invoice.

Question 5: How can customers receive electronic invoices?

1. Receipts are processed through the issuer's invoice receiving portal. Each customer will have a unique lookup code to access the system.
2. Received via email.
3. Received via SMS on your phone.

Question 6: How can customers view their electronic invoices?

1. View on a computer or tablet with an internet connection.
2. View on smartphones with internet connection.

Question 7: What tasks can customers perform with electronic invoices?

– View Invoice

– Download the invoice for archiving.

– Print the invoice on paper for viewing (not legally valid).

Question 8: Is the buyer required to digitally sign the electronic invoice?

Electronic invoices are considered legally valid and accepted by the Tax authorities even without digital signatures.

Question 9. Article 17 of Circular 153 stipulates: "In cases where the list of goods and services sold exceeds the number of lines on a single invoice, the seller may issue multiple invoices or choose one of two options." The following format applies: – The seller issues multiple invoices consecutively. The last item on the previous invoice contains the phrase "continued on next invoice," and the first item on the subsequent invoice contains the phrase "continued from previous invoice." – Can the seller use a list to enumerate the goods and services?

With paper invoices, the number of lines per invoice is fixed, so when a large number of goods and services are involved, it's impossible to record everything on a single invoice. However, with electronic invoices, the number of lines can automatically increase depending on the quantity of goods and products on the invoice, and a digital signature is applied to the entire invoice file, ensuring legal validity without the need to create multiple consecutive invoices or invoice summaries (electronic invoices have only one invoice number but consist of multiple pages).

Question 10. Can electronic invoices be used in a bilingual format (Vietnamese and a foreign language)?

Yes. If additional foreign language text is needed, it should be placed to the right in parentheses ( ) or directly below the Vietnamese text and in a smaller font size than the Vietnamese text.

Question 11. How can you distinguish between an electronic invoice (printed on paper) and a paper invoice?

1. Serial number: Electronic invoice without a copy
2. Invoice Symbol Field:
   • Electronic invoice: E
   • Paper invoice: P
3. An electronic invoice includes the field "INVOICE CONVERTED FROM ELECTRONIC INVOICE" if it is a converted invoice from an electronic to a paper version.
4. Chữ ký:
   • Electronic invoices: Digital signatures
   • Paper invoice: Hand-signed

Question 12. Do customers (buyers) need to store electronic invoices in paper form?

After making a purchase, customers will receive an electronic invoice from the seller as a file. Customers do not need to store the invoice but can access and search for information on the General Department of Taxation's electronic portal. For added security, customers can download the invoice file and save it.

In cases where the customer still needs a paper invoice for the accounting department to keep in accordance with the Accounting Law, the seller will print a converted invoice from the electronically converted invoice, sign and stamp it, and send it to the customer.

Question 13. If the seller uses electronic invoices, what payment method can the buyer use to pay the seller?

If the seller uses an electronic invoice, the buyer can still pay the seller using the same methods as when using a paper invoice (cash, bank transfer, credit card, and other methods).

Question 14. How do customers file taxes using electronic invoices?

After receiving an electronic invoice from the seller, customers can file taxes using the same procedure as for paper invoices.

Customers can request that the seller provide them with an electronic invoice that has been converted into a paper invoice and signed by the seller, to use as documentation for tax settlement and record keeping.

Question 15. When issuing an electronic invoice, is it mandatory for the date on the invoice and the date the invoice is signed to match?

According to Article 7 of Decree 119/2018/ND-CP, the time of issuing an electronic invoice for the sale of goods is the time of transferring ownership and the right to use the goods to the buyer, or the completion of the provision of services…

Logically, the Decree does not mention the invoice signing date and focuses on the date recorded on the invoice, which is the date of transfer of ownership of goods, completion of services, etc. Therefore, the date on the invoice and the electronic signing date do not necessarily have to coincide.

Question 16. If an electronic invoice (already issued and digitally signed) contains errors, how should it be corrected and handled?

If an error is discovered in an electronic invoice that has not yet been sent to the buyer, the seller must notify the tax authority using Form No. 04 in the Appendix issued with Decree 119/2018/NĐ-CP regarding the cancellation of the erroneous invoice and the creation of a new replacement electronic invoice.

If an error is discovered in an electronic invoice already sent to the buyer, the seller and buyer must draw up a written agreement clearly stating the error. The seller must then notify the tax authority using Form No. 04 in the Appendix attached to Decree 119/2018/ND-CP to cancel the erroneous electronic invoice and issue a replacement invoice.

Question 17. Is it mandatory for electronic invoice generation software to integrate with accounting/sales software, or can it be used independently?

Based on point d, clause 2, Article 4 of Circular No. 32/2011/TT-BTC, it states:

"There is sales software for goods and services that connects with accounting software, ensuring that data from electronic invoices for the sale of goods and services is automatically transferred to the accounting software (or database) at the time the invoice is created."

Question 18: When does the buyer need a legally valid paper invoice that is equivalent to an electronic invoice? What steps are needed to obtain a paper invoice?

The buyer needs a paper invoice (converted from an electronic invoice) in cases where proof of origin of goods is required, for the purpose of facilitating the circulation of goods in transit with relevant authorities.

• This invoice is issued only once and bears the signature of the legal representative of the Seller and the Seller's seal.
• The converted paper invoice clearly states "INVOICE CONVERTED FROM ELECTRONIC INVOICE".
• The customer (buyer) contacts the invoice issuer (seller) to obtain a paper invoice converted from an electronic invoice.

Question 19: Can a business (the seller) issue both electronic invoices and paper invoices simultaneously?

For a specific order: If using e-invoices, do not use self-printed or pre-printed invoices (conversely, if using pre-printed invoices, do not use e-invoices or self-printed invoices).

For different types of orders, both paper invoices and electronic invoices can be used simultaneously.

Question 20: If a business uses both electronic invoices and paper invoices simultaneously, how should it report on the use of electronic invoices for both forms?

Businesses must combine the information on the use of electronic invoices and the use of paper invoices into form BC26/AC of Circular 39/2014/TT-BTC (one line for each form) to report their invoice usage to the Tax authorities.