Editorial · November 7, 2016
E-Invoice in Vietnam: What Buyers Should Know
E-invoice in Vietnam means a bill that a seller creates, signs, sends and stores as electronic data, under rules set by the Ministry of Finance. A buyer can accept one as long as it carries the same core facts as a paper invoice and a legal electronic signature from the seller. This note explains what to look for before you pay a supplier.
What an e-invoice is
Vietnam's invoice rules start with Decree 51/2010/ND-CP. It defines an invoice as a document a seller makes to record a sale of goods or services. The decree took effect on January 1, 2011.
The Ministry of Finance then issued Circular 32/2011/TT-BTC on March 14, 2011. It covers how e-invoices are created, issued and used, and it took effect on May 1, 2011. Under the circular, an e-invoice is created, sent and stored on computer systems. A paper invoice that is only scanned, emailed or kept as a file is not an e-invoice.
What a valid invoice must show
An e-invoice has to carry the same basic facts as a paper one. Decree 51 lists them. These are the invoice name, symbol and number, and the seller and buyer names, addresses and tax identification numbers. It also lists the goods or services, units, quantities and prices, the total paid, and the date.
For a value-added tax invoice, the decree also asks for the amount before tax, the VAT rate and the VAT amount. The decree describes this invoice type as the one for sellers that declare VAT by the credit method. Check that your own company name and tax number are correct before you accept the invoice. An error costs more to fix later.
Signature, tax office notice and storage
The signature is what makes an e-invoice valid. Circular 32 says the seller must use an electronic signature that meets the law, and the invoice must show the date it was billed and sent. A plain typed name does not meet that test.
Sellers also have steps to take with the tax authority. Before creating e-invoices, an organization issues a decision to apply them and sends it to its managing tax office. It then sends a notice of issuance before use, listing the issuer's details and the invoice types it will issue. Before you sign a contract, ask your seller whether it has done this.
Both sides keep the invoice. The circular says sellers and buyers must store e-invoices for the period set by the Accounting Law. The circular also says the information in an e-invoice must stay complete and usable when needed. Keep the file, not just a print of it.
Paper copies and mistakes
Sometimes you need paper, for example for an auditor or to prove where goods came from. Circular 32 allows an e-invoice to be converted to paper. The copy must show the full content of the original and say that it was converted from an e-invoice. It must also carry the signature and full name of the person who converted it. When a seller converts an e-invoice to prove the origin of goods, it may do so only once, and that copy also needs the signature of the seller's legal representative and its seal.
If an e-invoice has an error, the seller and buyer should agree on it. The circular says that if the goods have not been delivered and neither side has declared taxes yet, an invoice with a mistake can be voided only with the consent of both sides, and voided invoices must be kept for state agencies. Do not let a seller simply delete a wrong invoice and send a new one without a record.
When you can ask for an invoice
You do not have to wait for the seller to offer one. Under Decree 51, a sale of goods or services below VND 200,000 does not need an invoice unless the buyer asks for it. Circular 39/2014/TT-BTC, effective June 1, 2014, repeats this rule. It adds that for a sale of VND 200,000 or more, the seller must issue an invoice even if the buyer does not ask.
For a business buyer, the habit is simple. Ask for the invoice at the time of purchase, and say you want it in your company name with your tax number. Small purchases are the ones people forget.
A short checklist
Before you pay, confirm five things. First, the invoice shows your correct name, address and tax number. Second, the goods, quantities, prices and tax lines match your order. Third, it carries the seller's electronic signature and a date. Fourth, you can save it as an electronic file and keep it for the legal period. Fifth, you know how to ask for a corrected invoice if something is wrong.
If a seller cannot answer these points, treat that as useful information about how it runs its books. A seller that follows the invoice rules is usually easier to work with over the long term.
A place on this register is not for sale.