Tax Alert - Decree 123/2020/ND-CP on invoices and documents

On 19 October 2020, The Government issued Decree 123/2020/ND-CP (“Decree 123") on invoices and documents, accordingly, E-invoices is encouraged to be adopted before 01 July 2022 and shall be compulsory from 01 July 2022, i.e. the effective date of the Decree. Decree 123 has the following noteworthy points.

On the Decree's effectiveness and transitional provision:

  • Decree 123 abolishes Point 2 and Point 4, Article 35, Decree 119/2018/ND-CP (“Decree 119”) on E-invoice. Accordingly, businesses will no longer be obligated to implement E-invoice during the period from 01 November 2020 to 30 June 2022, except for the case in which the tax authority requires the businesses to implement E-invoice as regulated in this Decree or Decree 119. In case the businesses cannot meet conditions of information technology infrastructure, the business can keep using the current form of invoices and must prepare and submit the data of output invoices together with submission of Value Added Tax ("VAT") returns.
  • During the aforementioned period, Decree 51/2010/ND-CP and Decree 04/2014/ND-CP on invoices for sales of goods and services; Decree 119 on E-invoice shall remain in effect.

Other points:

  • With regard to the issuance date of invoices: 

o For provision of services: Invoices must be issued at the earlier date of final delivery of services or receiving payment before/during the rendering of services. Of note, certain services are excluded from the requirements to issue invoices at the date of receiving deposit or advance payments, including accounting, auditing, financial advisory, tax advisory services; valuation; technical surveying and design; supervision services; planning services for investment project.

o This Decree 123 also provides guidance on the issuance date of invoices for specific services such as telecommunication, logistic, information technology of which the billing data must be reconciled first; air transportation services supplied through website and e-commerce platforms; retail of petroleum; banks, security, insurance services, transfer of money through e-wallets, supply and termination of supply of electricity to individuals, taxi transportation using billing software, health facilities providing medical services, collection of toll road charges; etc.

  • In case the taxpayer provides services on a periodic basis, it is allowed to use the bill of sales instead of listing all of the provided goods and services in the invoice (including E-invoice). The bill must be maintained together with the invoices for the purpose of future inspection by the competent authority.
  • Depending on specific circumstances, taxpayers can register for the use of E-invoice directly on the portal of the General Taxation Department or though E-invoice services supplier.
  • In case errors are found in invoices which are already issued and sent to the buyer, the seller can either opt to issue another invoice amending the errors, or to issue another invoice replacing the one with errors.
  • Pre-printed invoices shall be provided by the tax authority to taxpayers in some limited circumstances and for a maximum period of 12 months.


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

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[VIE] Mazars Vietnam_​Tin Thuế_​Nghị định 123_​2020 về hóa đơn và chứng từ
[ENG] Mazars in Vietnam_​Decree 123_​2020 on the invoice and documents