Summary of latest regulations on electronic invoicing and digital signatures in Vietnam: technical requirements, storage, and violation handling.
From 2022, electronic invoicing became mandatory for most businesses in Vietnam. Regulations continue being refined. This article updates the latest requirements.
1. Current Legal Framework
- Decree 123/2020/NĐ-CP: regulations on invoices and documents
- Circular 78/2021/TT-BTC: detailed implementation guide
- Electronic Transactions Law 2023: digital signature regulations
- Decree 130/2018/NĐ-CP: detailed digital signature regulations
2. Two Types of Electronic Invoices
2.1. E-Invoices with Tax Authority Code
Each issued invoice gets authentication code from General Department of Taxation. Applies to:
- Businesses with high tax risk
- Businesses resuming after suspension
- Small-scale household businesses
2.2. E-Invoices without Tax Authority Code
Businesses self-issue per regulations. Applies to:
- Most normally operating businesses
- With adequate IT systems
3. Technical Requirements for E-Invoices
3.1. Format
- XML format per Ministry of Finance standards
- Must have seller's digital signature
- Authentication code (if with-code type)
3.2. Mandatory Content
- Invoice type, symbol, number
- Seller name, address, tax code
- Buyer name, address, tax code
- Product/service name; unit, quantity, unit price
- Amounts (pre-tax, VAT, total)
- Seller digital signature
- Authentication code (if with-code type)
4. Electronic Invoice Issuance Process
- Register with tax authority: through General Department of Taxation Service Portal
- Choose solution provider: licensed e-invoicing software
- Register invoice template: send sample to tax authority for approval
- Integrate system: with accounting software
- Issue invoices: create, sign, send to customers
- Periodic summary reports: submit to tax authority on schedule
5. Digital Signature
5.1. Two Types of Digital Signatures
- USB Token: physical device, most popular, VND 1-3 million/year
- HSM (Hardware Security Module): for large systems signing many invoices/day, more expensive but more convenient
5.2. Digital Signature Providers
Licensed providers:
- VNPT-CA
- Viettel-CA
- BKAV-CA
- FPT-CA
- SafeCA
- NewCA
5.3. Digital Signature Validity
Digital signatures valid 1-3 years. Must renew before expiry to avoid disruption.
6. E-Invoice Storage
Requirements:
- Store minimum 10 years
- Ensure integrity, no modification
- Searchable, exportable when needed
- Periodic backup
Can store on:
- Solution provider's system
- Business's internal system
- Licensed cloud services
7. Violation Handling
Per Decree 125/2020/NĐ-CP on administrative tax violations:
| Violation | Penalty |
|---|---|
| Not using e-invoice when mandatory | VND 10-20 million |
| Incomplete content e-invoices | VND 1-3 million/invoice |
| Improper e-invoice use | VND 4-8 million |
| Not sending invoice to buyer | VND 2-4 million |
| Issuing false invoices (no actual transaction) | VND 20-50 million + criminal prosecution |
8. Wrong Invoice Handling
If errors discovered:
8.1. Invoice Not Yet Sent to Customer
Cancel immediately and issue new invoice.
8.2. Invoice Sent But Not Declared
Can adjust by:
- Cancel old invoice (if buyer not yet declared)
- Or issue adjustment invoice
8.3. Invoice Already Declared
Must issue adjustment invoice with reconciliation between parties.
9. Recommended Actions
- Update software: ensure latest format
- Train staff: accounting and sales
- Backup invoices: both cloud and internal servers
- Track digital signature expiry: renew 30 days early
- Periodic reconciliation: with tax authorities and partners
This article is for reference only. Please contact a lawyer for accurate advice.
Frequently Asked Questions
Are e-invoices mandatory for small businesses?
Yes, for all businesses (including smallest). Only some small household businesses not yet mandatory but encouraged. Most businesses switched to e-invoices from 7/2022.
Need to print e-invoices to paper?
Not mandatory. However some partners request paper copies, especially individual customers unfamiliar with electronic files. Can print when needed — for reference only, not replacing original e-invoice.
Lost USB Token digital signature — what to do?
Immediately notify digital signature provider to disable, prevent misuse. Then register new USB Token. During wait, can temporarily suspend invoicing or use alternative solution.
Do e-invoices have same legal value as paper invoices?
Yes, fully equivalent per Decree 123/2020. Can be used as legal evidence, tax declaration, debt reconciliation.
Suspended business must keep old e-invoices?
Yes, must keep full 10 years per regulations. If dissolved, business still must ensure data stored and searchable when needed. Recommend backup to physical drives or long-term storage services.