DECREE NO. 70/2025/NĐ-CP ISSUED BY THE GOVERNMENT AMENDING AND SUPPLEMENTING SEVERAL ARTICLES OF DECREE NO. 123/2020/NĐ-CP ON INVOICES AND DOCUMENTS

On March 20, 2025, the Government issued Decree No. 70/2025/NĐ-CP (Decree 70) amending and supplementing certain provisions of Decree No. 123/2020/NĐ-CP (Decree 123) regarding invoices and documents. On March 28, 2025, the Tax Department issued Official Dispatch No. 348/CT-CS (Dispatch 348) to introduce the new contents of Decree 70.

We would like to highlight some key updates from Decree 70 and Dispatch 348 aimed at improving transparency, facilitating taxpayers, and simplifying procedures:

1. Additional Entities Required to Use E-Invoices (E-Invoices)

• Foreign suppliers without a permanent establishment in Vietnam engaging in e-commerce, digital platform-based businesses, and other services can voluntarily register to use VAT invoices.

2. Principles for Creating, Managing, and Using Invoices and Documents

• Sellers must issue invoices for cases outlined in Article 19.

• Tax authorities and service providers may use e-invoice data to promote consumer demand for invoices through loyalty programs, lucky draws, and prize invoice campaigns.

• Sellers (including business households and individuals) may authorize third parties to issue e-invoices on their behalf.

• Electronic receipts and e-invoices may be integrated into a unified electronic format to support digital transformation.

3. Invoice Types

• Export processing enterprises engaging in other business activities:

  • Use sales invoices if declaring VAT by direct method.

  • Use VAT invoices if declaring by credit method.

• E-commercial invoices:

  • Issued by exporters of goods or services meeting conditions to electronically transmit data to tax authorities.

  • If conditions are not met, VAT e-invoices or sales e-invoices may be used instead.

4. Time of Invoice Issuance

Decree 70 adds or adjusts invoice timing regulations, including:

• For exports (including outsourcing): The latest by the next working day after customs clearance.

• For foreign service recipients: At service completion, regardless of payment status.

• For high-frequency transactions requiring data reconciliation: Latest by the 7th of the following month or 7 days from the end of the settlement period.

• For insurance: When revenue is recognized.

• For traditional lottery tickets: Before the next draw and after reclaiming unsold tickets.

• For casino and gaming businesses: Within 1 day after the revenue day.

• For lending: At interest collection or prepayment as per loan agreements.

• For foreign currency trading: At the point of currency exchange or service completion.

• For natural gas and similar activities: At the latest, the last day of the tax filing deadline of the month.

• Removal of end-of-day/month invoice requirement for certain banking and insurance services.

• For taxi businesses using metering software: At the end of the trip.

• For medical facilities: When reimbursed by social insurance authorities.

5. E-Invoices Generated from Cash Registers

• Entities using connected cash registers to generate e-invoices must include:

  • Business households/individuals with revenue ≥ VND 1 billion annually.

  • Enterprises directly selling goods/services to consumers (e.g., retail, restaurants, hotels, transport, entertainment, etc.).

• Regulations on required contents for such invoices are provided.

Other Key Updates in Decree 70 and Dispatch 348:

• E-invoice contents.

• E-invoice application in goods and service sales.

• Replacement/adjustment of e-invoices.

• Registration and cancellation of e-invoice usage.

• Provisions on related documents.

• Responsibilities of relevant parties.

• Retrieval, provision, and usage of e-invoice information.

• Additional provisions.