Vietnam recently issued Decree No.119/2018/ND-CP (“Decree 119”) on the use of electronic invoices (e-invoices) for the sale of goods and services. Through Decree 119 which will be in effect from November 1, 2018, the government is aiming that at least 90 percent of the firms will use e-invoices by 2020.
Types of e-invoices
There are two types of e-invoices, one with the tax authority’s verification code and one without. E-invoices with the verification codes can be used for tax declarations.
Firms in the electricity, petroleum, telecommunication, credit financing, transportation, e-commerce, insurance, supermarkets, and trading sectors can use e-invoices without verification codes. In addition, enterprises that transact directly with the tax authorities electronically or have the technology infrastructure, accounting software, and e-invoice software as per regulations do not require to use e-invoices with verification codes.
This is an exerpt from an article appearing in Vietnam Briefing, a subsidiary of Dezan Shira & Associates. For the latest economic, regulatory and business news from Vietnam, visit vietnam-briefing.com.