E-Invoice Set-up
Invoice (a.k.a VAT invoice or “Red Invoice”) is one of significant supporting document in terms of accounting and tax declaration for all enterprises when doing business in Vietnam. VAT invoice is required to register with tax authority prior issuance.
The Company are free in designing e-invoice template following their desires. However, there are certain information required to be reflected on VAT invoice.
- Information of seller & purchaser (Company’s name, address, tax code)
- Information of services, trading goods (Quantity, unit price, net amount, tax rate applicable, tax amount, total)
- Date of transaction
- E-signature of the seller
Aiming to release the burden from paperwork custody and apply advanced technology, e-invoice is designed to facilitate enterprises in doing business. All firms are required to switch to use e-invoice from July 2022 (*)
Once e-invoice is prepared on e-invoice systems, the company can send drafted one to their client for review and recheck (if any). Upon confirmation, e-invoice is officially issued through e-invoice systems, using tax token to have e-signature of the seller reflecting on it. E-invoice is also sent directly to Tax Office for obtaining tax code.
Changing from paper invoice to e-invoice facilitates the enterprise in terms of document custody and storage, as soft copies are achieved and retained instead of hard copies filings.
By using e-invoice systems, report of invoice usage is no longer required.
(*) Circular 78/2022 dated 17 Sep 2021