Vietnam Issues New E-Invoices Decree – Types of e-invoices
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.
For individual and companies involved in the agriculture, forestry, fishery, industry, and construction sectors employing more than 10 labourers and having an annual revenue over VND 3 billion in the preceding year must use e-invoices with verification codes. In the trade and services sector, if the individuals and companies have an annual revenue of over VND 10 billion, they need to use e-invoices with verification codes.
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