Einvoice
The Status of Using E-Invoices in Vietnam
August 30, 2021

Previously, the use of paper invoices was still used by all businesseseven though it was costly for businesses, and at the same time was a loopholethat created conditions for businesses to conduct tax evasion and tax evasion.Therefore, the implementation of the use of e-invoices is an urgent requirementto save social costs and improve the soundness of the financial system.

 

Although the State has strongly supported to encourage businesses to use100% e-invoices, specifically, Decree No. 119/2020 has been issued to mandatethe use of e-invoices from November 1, 2020. 2020 but until Decree123/2020/ND-CP has had to delay the mandatory use of e-invoices to July 1, 2022.

 

Further reference: Points to note in Decree 123/2020/ND-CP

 

With this article, Nacencomm will show the benefits of e-invoices andanalyze the current situation of using e-invoices in Vietnam.

 

1. Benefits of e-invoices

 

E-invoice is a collection of information and data on goods trading andservice provision created, made, sent, received, stored and managed byelectronic means. E-invoices are created, made and processed on the computersystem of the organization that has been granted a tax code when selling goodsand services and stored on the computers of the parties in accordance with thelaw on trade. electronic translation.

 

With just one simple operation, buyers will receive invoices anytime,anywhere with internet. Therefore, using e-invoices benefits businesses andcools down the national financial system.

 

Firstly, using electronic invoices helps reduce costs for businesses andis convenient to use. If using paper invoices, businesses have to spendexpenses such as printing, issuing, preserving and storing invoices, then theaverage cost of a paper invoice is 1,000 VND. according to preliminaryestimates of the Department of Large Enterprises - General Department ofTaxation). With the number of about 2.5 billion invoices per year in the wholecountry, the expenditure is up to 2.5 trillion VND. Using e-invoices helpsbusinesses save a lot of time (reducing up to 70% of the issuance process, upto 99% of payment time, managing invoices, saving 89% of costs for eachinvoice).

 

Second, using e-invoices makes it convenient for businesses to use. Withthe application of information technology, it has shortened the payment time,simplified the management of searching invoices, suitable for accounting anddata reconciliation. In addition, the use of e-invoices also helps leaders andemployees in enterprises have close coordination in each part such as creating,digitally signing, transmitting/receiving invoices.

 

Not only that, the use of e-invoices also promotes both leaders andemployees in enterprises to innovate, especially in terms of technology, adaptto changes and increase competitive advantage in changing conditions. changethe business environment. If businesses cannot take advantage, they will losethe opportunity to compete with other businesses because of the delay in theprocess of sending invoices to customers.

 

Because while paper invoices usually take 3-5 days to send to customersat a cost of about 20,000-25,000 VND for one time, the e-invoice only takes 3-5seconds to send online and the customer has received the invoice. . The delayof paper invoices is the main reason causing difficulties for customers whenthey want to continue to transact with uninvoices and also an obstacle forbusinesses to spend time waiting to recover debts.

 

Third, using e-invoices contributes to modernizing and improving theefficiency of tax authorities' management. On the basis of using informationtechnology to collect, aggregate and report data from e-invoices as well assend and receive invoices faster by electronic means, reducing the risk oflosing invoices, reducing the risk of losing invoices. costs for businesses aswell as dealing with illegal invoicing and use of invoices (VCCI, 2017).

 

Using e-invoices also helps the tax sector to build a database ofinvoices; support tax inspection, inspection and refund, risk analysis ofbusinesses and individuals when doing business. In terms of management, thee-invoice helps businesses easily in the process of preparing reports and thepost-audit process of the tax authorities.

 

With a transparent management process, e-invoices have helped businessesoperate smoothly, minimizing errors in the operation process. All data one-invoices is digitized when stored, so it is easy to look up and build reportsat the request of management agencies. At the same time, it helps to minimizeconflicts between customers and suppliers.

 

2. Legal framework for e-invoices in Vietnam

 

E-invoices are increasingly popular in commercial transactions and becomean inevitable trend in the context that information technology is increasinglybeing applied strongly in enterprises in Vietnam. Therefore, the State hasformed a synchronous and increasingly complete legal framework to create alegal basis for electronic transactions in general and the use of e-invoices inparticular, such as the Law on Electronic Transactions promulgated in 2005. TheAccounting Law was issued in 2003 and revised in 2015.

 

In 2010, the Government issued Decree No. 51/2010/ND-CP dated May 14,2010 with regulations on electronic invoices. Accordingly, an invoice is adocument made by the seller, recording information on the sale of goods andservices in accordance with law. In particular, with Circular No.32/2011/TT-BTC dated March 14, 2011 guiding the creation, issuance and use ofe-invoices for selling goods and providing services, the invoice has beenissued. Electronic devices have been officially applied in our country since2011.

 

During the implementation of e-invoices, the Ministry of Finance issuedDecision No. 1209/QD-BTC dated June 23, 2015 on piloting the use of e-invoiceswith authentication codes of tax authorities when selling goods and providingservices to businesses. However, on December 14, 2016, the Ministry of Financeissued Decision No. 2660/QD-BTC on extending the implementation time ofDecision No. 1209/QD-BTC.

 

On September 12, 2018, the Government issued Decree No. 119/2018/ND-CP ofthe Government detailing the scope and subjects of application of e-invoices,which is considered as an important legal framework for promoting e-invoices.promote the process of e-invoicing in Vietnam. Accordingly, businesses arerequired to use e-invoices from November 1, 2020 when selling goods andproviding services. However, to meet the requirements of the Law on TaxAdministration No. 38/2020/QH14 dated July 15, 2020, it is necessary to expandthe scope of application and improve the process of managing receipts anddocuments by electronic method. die accordingly. Therefore, the Government hasissued Decree No. 123/2020/ND-CP to replace Decree No. 119/2018/ND-CP with somenew more appropriate points.

 

Firstly, clearly stipulate the subjects applying e-invoices, the sale ofinvoices by tax authorities, the procedures for purchasing invoices, the numberof sales invoices as well as the procedures in the process of using invoices.two objects apply and add 2 types of invoices in addition to the previous 3types of invoices. In particular, stipulating the time of making invoices inproviding services in large quantities, arising frequently, it is necessary tohave time to compare data between enterprises; detailed timing for the cases ofreal estate, infrastructure construction, electricity sales by companies thatproduce, provide air transport services, insurance through agents, bankingservices, Stocks, travel…

 

Second, the new regulations are built on the basis of creating conditionsfor businesses to have time to convert forms of invoices. Specifically, ifenterprises have issued paper invoices, they can continue to use them until theend of June 30, 2022. In case an e-invoice has been issued with a time of digitalsignature on the invoice different from the time of invoice issuance, it isstill considered a legal invoice and the time of tax declaration is the time ofinvoice issuance. In addition, enterprises can easily convert e-invoices intopaper documents when required, as long as the conversion must ensure thecorrect match between the contents of the e-invoice, the e-document and theinvoice. paper vouchers.

 

In case the buyer's name and address are incorrect, but the tax code andother information are not wrong, the seller may notify the buyer and the taxauthority without having to re-invoice. For other errors, enterprises canchoose one of two ways: invoice adjustment or replacement. In particular, themandatory deadline for completing the conversion of electronic invoices will beapplied from July 1, 2022, instead of the original requirement that businessunits must convert electronic invoices before November 1, 2020. 2020.

 

Third, the new Decree has created an important step forward in taxadministration. Specifically, clear regulations on prohibited acts in the fieldof invoices and vouchers. For tax officials, it is forbidden to intentionallycause troubles or difficulties when organizations and individuals come to buyinvoices and vouchers; cover up or collude for organizations and individuals touse illegal invoices and vouchers; or acts of accepting bribes when inspectingdocuments and invoices. For organizations and individuals that sell or providegoods and services, it is forbidden to perform fraudulent acts, such as usingillegal invoices; obstructing tax officials from performing official duties;unauthorized access, falsification or destruction of the information system oninvoices and documents; give bribes, or perform other acts related to invoicesand documents for illicit gain.

 

At the same time, in order to strictly manage the preparation and use ofe-invoices, Decree 123 also stipulates the responsibilities of enterprises,taxpayers and ministries and branches in sharing and connecting information anddata. Accordingly, enterprises and economic organizations producing and doingbusiness in the fields of electricity, petroleum, post and telecommunications,clean water, insurance, health care, e-commerce business, etc., implemente-contracts and provide e-commerce services. provide e-invoice data accordingto the data format announced by the General Department of Taxation. Creditinstitutions and payment service providers shall provide electronic data onpayment transactions via accounts at the request of tax authorities.Organizations and units such as market management, General Department of LandManagement, public security agencies, traffic ... connect and share relevantinformation and data necessary in the field of management with the General Departmentof Taxation to building a database of e-invoices.

 

See more: Roadmap to apply e-invoices in Vietnam

 

3. Should convert e-invoices from today

 

In order for businesses to not face difficulties when converting toe-invoices, many tax agencies have censored and selected to coordinate with anumber of reputable e-invoice providers. In Hanoi, Ho Chi Minh, Hai Duong, NinhBinh… CA2 is always in the top of e-invoice suppliers selected by taxauthorities to coordinate and introduce to businesses. CA2 is also one of thee-invoice suppliers actively coordinating with local tax authorities toorganize a program to support and guide each business to make the transition tousing e-invoices. according to the right time and procedures to avoid legalrisks.

 

Facing the decisive moment of converting e-invoices, CA2 has a series ofgreat incentives exclusively for customers who register to use e-invoices:

 

Free of charge:

– 100% FREE integration fee with software such as accounting and salessoftware

 

– 100% FREE consultation fee on registration procedures for usinge-invoices with the Tax Agency

 

– 100% FREE invoice template fee

 

– 100% FREE storage fee, 10 year invoice lookup. No annual maintenancefee

 

– 100% FREE software trial fee

 

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