New Decree on electronic invoices - Mazars Legal Alert

On 12 September 2018, the Government has promulgated Decree 119/2018/ND-CP (“Decree 119”) which shall take effective from 01 November 2018, replacing Decree 51/2010/ND-CP (“Decree 51”) and Decree 04/2014/ND-CP (“Decree 04”) on E-invoices for sale of goods and services. Accordingly, from 01 November 2020, all tax payers must use E-invoices for the sale of goods and services.

E-invoices Implementation

The implementation of E-invoices with and without verification code of the tax authority shall be as follows:

-          Tax payers who can opt to use E-invoices with or without verification code of the tax authority include: enterprises operating in certain business activities ( electricity; petroleum; posts and telecommunication; transportation; supply of clean water; credit, finance; insurance; health care; e-commerce; supermarket; trading), or enterprise, organizations who work with tax authority via electronic method and satisfy the IT infrastructure, accounting software, E-invoice software allowing the invoice issuance, monitoring and filing in accordance with the regulations and ensuring invoice transmission to customers and tax authority.

-          Other tax payers and high risk profile tax payers must use E-invoices with verification code of the tax authority.

The registration for applying E-invoices with or without the verification code of the tax authority shall be performed via the portal of the General Taxation Department. From the registration date of using E-invoices, the remaining unused paper invoices (if any) shall be invalid and must be destroyed, and sellers must issue invoice for each transaction regardless of transactional value.

During the transitional period from 01 November 2018 to 31 October 2020, enterprises, economic organizations, business households, individuals already using pre-printed/self-printed invoices or bought paper invoices from the tax authorities before 01 November 2018, or newly established businesses from 01 November 2018 can still use paper invoices unless they are requested to use E-invoice with verification code of the tax authority. In case tax payers are requested to use E-invoice with verification code of the tax authority but lack of necessary IT infrastructure, the tax payers can use paper invoices until 31 October 2020, however have to report the data of output invoices to the tax authority.

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We do trust the above points are notable and sufficient, but should you have any question or need a deeper discussion on this issue, please do not hesitate to contact us.

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