Vietnam's E-Invoicing Updates: Key Amendments and Implementation Timeline for 2025

On March 20, the Vietnamese government released a decree amending the national e-invoicing regulation, which will come into effect on June 1, 2025. Amendments include the expansion of the scope of entities eligible to use e-invoices, clarification on invoice issuance, the type, time, and content of invoices, and other essential updates.

The introduction of the e-invoicing rules is part of the broader tax reform and digital transformation plan, which includes the adoption of the new VAT Law and the introduction of the deemed supplier rule for domestic and foreign e-commerce platform operators.

Key Amendments to the E-invocing Decree

Regarding the scope of entities eligible to use e-invoices, amendments include non-resident suppliers engaged in e-commerce and digital-platform-based business activities who register voluntarily for the e-invoicing regime.

Furthermore, sellers, such as individual businesses and households, may authorize a third party to issue e-invoices. Export processing enterprises, which are involved in other non-export business activities, must use either sales e-invoices or VAT e-invoices, depending on the registered tax declaration method. Additionally, businesses may issue commercial e-invoices for exports if the technical conditions for data transmission are met.

The rules for the timing of e-invoice issuance are also clarified by the amendments, stating that invoices for exported goods must be issued by the next working day following customs clearance. Additionally, the timing of invoice issuance in the banking, e-commerce, advertising, and passenger transport sectors is clarified, and the previous end-of-day or monthly invoicing provisions for specific retail and service sectors are removed.

Regarding the invoice content, the data that must be stated on invoices includes the personal identification number of the individual buyers or the codes of state budget-related units, as well as a description of the goods and service names in some cases, such as food and beverage services and transportation services.

Other amendments refer to rules for the replacement and adjustment of e-invoices, where the regulation on invoice cancellation is abolished, and the scope of prohibited acts is expanded to include failure to transmit electronic data to the Tax Authorities and forging invoices. Finally, the amending decree updated some reporting templates.

Conclusion

The Vietnamese government is taking steady and firm steps towards modernizing the tax regime and creating a system more suitable for the digital economy's requirements. However, the implementation of the national e-invoicing system poses challenges for all parties involved, primarily the government and businesses.

Nevertheless, as the implementation deadline approaches, taxable persons should determine which types of e-invoices they must exchange, how to communicate with the Tax Authority, and what data must be included in the e-invoices.

Source: Vietnam Law Library, KPMG, VATabout