Decree No. 119/2018/ND-CP dated September 12, 2018 of the Government on prescribing electronic invoices for sale of goods and provision of services

THE GOVERNMENT

Decree No. 119/2018/ND-CP dated September 12, 2018 of the Government on prescribing electronic invoices for sale of goods and provision of services

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Law on Tax Administration dated November 29, 2006, the Law on Amendments and Supplements to certain articles of the Law on Tax Administration dated November 20, 2012, the Law on Value-added Tax dated June 3, 2008 and the Law on Amendments and Supplements to certain articles of the Law on Value-added Tax dated June 19, 2013;

Pursuant to the Law on Accounting dated November 20, 2015;

Pursuant to the Law on Electronic Transactions dated November 29, 2005;

Pursuant to the Law on Information Technology dated June 29, 2016;

Upon the request of the Minister of Finance,

By this document, the Government promulgates the Decree prescribing electronic invoices for sale of goods and provision of services (hereinafter referred to as e-invoice or sales and service e-invoice).

Chapter I

GENERAL PROVISIONS

Article 1. Scope of adjustment

This Decree deals with the use of e-invoices for provision of goods and services; duties and powers of tax authorities at all levels and entities or bodies related to the use and management of e-invoices; rights, obligations and responsibilities of entities, organizations and individuals in the use and management of e-invoices.

Article 2. Subjects of application

1. Organizations, enterprises and individuals selling goods and providing services that are covered by this Decree shall include the followings:

a) Enterprises established and operated under the provisions of the Law on Enterprises, the Law on Credit Institutions, the Law on Insurance Business, the Law on Securities, the Law on Petroleum, and other legislative documents, in the form of a Joint Stock Company, Limited Liability Company, Partnership Business or Sole Proprietorship Business;

b) State-owned public service units selling goods and providing services;

c) Organizations established and operated under the Law on Cooperatives;

d) Other organizations;

dd) Business households or individuals.

2. Organizations and individuals purchasing goods and services.

3. Organizations providing e-invoice services.

4. Tax authorities at all levels and organizations or individuals involved in the use and management of sales and service invoices.

Article 3. Definition

For the purposes of this Decree, terms used herein shall be construed as follows:

1. Invoice means an accounting document which is created by an organization or individual selling goods or providing services to keep a record of information about provision of goods or services in accordance with accounting legislation.

2. Electronic invoice (e-invoice) means an invoice which is represented in the electronic data form, is created by an organization or individual selling goods or providing services, shows information about these goods or services, digital signatures and electronic signatures as per this Decree by using electronic instruments, even including those invoices created by POS cash registers with network connections for transmission of electronic data to tax authorities.

3. E-invoice without a tax authority’s identification code means an electronic invoice that an organization selling goods or providing services sends to the buyer in the absence of a tax authority s identification code, even including those that are created by POS cash registers with network connection for transfer of electronic data to tax authorities.

4. E-invoice with a tax authority’s identification code means an electronic invoice that is assigned an identification code by the tax authority before an organization or individual selling goods or providing services sends it to the buyer, including those which are created by POS cash registers with network connections for transfer of electronic data to tax authorities.

5. A tax authority’s identification code inscribed on an e-invoice is composed of a transactional number which is a sole numerical series and a chain of characters which is invented by the tax authority based on the information provided by the seller on the e-invoice.

6. E-invoice created by a POS cash register means an invoice which is originally created by a POS cash register with a network connection for online transfer of electronic data using the standard data format determined by the tax authority.

7. Use of digital certificates, digital signatures and electronic signatures shall comply with legislative regulations on electronic transactions.

8. Organization providing e-invoice services includes organizations providing e-invoice solutions, organizations providing such services as receiving, transmitting and storing e-invoice data and other services related to e-invoices.

9. Use of an illegal e-invoice means the use of an e-invoice without applying for the registration for the use of that e-invoice with the tax authority; the sending of an e-invoice without the tax authority s identification code to the buyer in the event of use of an e-invoice with the tax authority’s identification code; the sending of an e-invoice without the tax authority’s identification code to the buyer after receiving the notification of revocation of e-invoices without tax authorities identification codes.

10. Illegal use of an e-invoice means the fraudulent creation of an e-invoice; the use of the e-invoice designed for this good or service for another one; the creation of an e-invoice reflecting the payment value lower than the actual value; the rotation of an e-invoice for another use during the transportation of goods in circulation.

11. Revocation of an e-invoice means an act of making this e-invoice become invalid.

12. Destruction of an e-invoice means an act of making information contained in that e-invoice inaccessible and unreferrable.

13. E-invoice database means a collection of informative data about invoices which is owned by the management of organizations, enterprises and individuals upon sale of goods and provision of services.

Article 4. Principles of e-invoicing, use and management of e-invoices

1. When selling goods and providing services, the seller (except business households or individuals defined in clause 6 Article 12 of this Decree) must issue an e-invoice with or without the tax agency s identification code to the buyer by using the standard data format regulated by the tax authority and fill in all information required by this Decree, irrespective of value of each sale or provision.

In case of using the POS cash register for sale of goods or provision of services, the seller must apply for registration for use of e-invoices sent by the POS cash register with network connection for online transfer of electronic data to the tax authority.

2. Registration, management and utilization of e-invoices for sale of goods or provision of services must conform to legislative regulations on electronic transactions, accounting, taxation and those provisions laid down herein.

3. The e-invoice data about sale of goods or provision of services shall be collected to build the e-invoice database used for the purposes of tax management and meeting the needs of concerned organizations or individuals for e-invoice information.

4. Issuing the tax authority s identification code available for use in an e-invoice shall be based on the information that enterprises, business organizations, households and individuals write on that e-invoice. Enterprises, business organizations, households and individuals shall be held responsible for accuracy of the information inscribed on an e-invoice.

5. An e-invoice that is created by a POS cash register with network connection for transfer of electronic data to the tax authority shall conform to the following principles:

a) That e-invoice must be recognizable as the e-invoice printed by a POS cash register with network connection for transfer of electronic data to the tax authority;

b) Digital signature on that e-invoice can be optional;

c) The spending on provision of goods or services written in the invoice (or is described in the scanned invoice or the information search result on the e-invoice page in the Web Portal of the General Department of Taxation) which is created a POS cash register may be defined as an expense that is supported by an adequate number of legal invoices and evidencing documents upon determination of tax obligations.

Article 5. E-invoice types

E-invoices shall be classified into the following types:

1. Value-added tax e-invoice which is an invoice that may be used by providers of goods or services for their value-added tax declaration made by employing the credit method. In this case, this type of e-invoice shall include those invoices created by POS cash registers with network connections for transfer of electronic data to tax authorities.

2. Sales e-invoice which is an invoice that may be used by providers of goods or services for their value-added tax declaration made by employing the direct method. In this case, this type of e-invoice shall include those invoices created by POS cash registers with network connections for transfer of electronic data to tax authorities.

3. Other e-invoices, including electronic stamps, electronic tickets, electronic cards, electronic receipts, electronic goods dispatch and consignment note, or electronic evidencing documents which carries other names but contains information specified in Article 6 of this Decree.

4. E-invoices referred to in clause 1, clause 2 and clause 3 of this Article shall be issued by using the standard data format regulated by the Ministry of Finance.

Article 6. E-invoice contents

1. E-invoices shall contain the following information:

a) Invoice title, invoice code, invoice form code, invoice number;

b) The seller’s name, address and tax identification number;

c) The buyer’s name, address and tax identification number (where the buyer s tax identification number is available);

d) Name, measurement unit, quantity, unit price of goods or services; amount before VAT, rate of VAT being charged, total amount with VAT calculated at specific VAT rates, total VAT amount, total sum inclusive of VAT with respect to an VAT tax invoice;

dd) Total sum;

e) The seller’s digital signature and electronic signature;

g) The buyer’s digital signature and electronic signature (if any);

h) E-invoicing time;

i) The tax authority’s identification code, required with respect to an e-invoice with the tax authority s code;

k) Fees and charges remitted into the state budget and other related contents (if any).

2. The Ministry of Finance shall elaborate on contents of e-invoices and cases in which it is unnecessary to present all contents stated in clause 1 of this Article.

Article 7. E-invoicing time

1. Time of issue of an e-invoice for sale of goods is the time of transfer of the right to own or use goods to the buyer, irrespective of whether the payment of the invoiced amount is made or not.

2. Time of issue  of an e-invoice for provision of services is the time of completion of provision of services or the time of issue of the service invoice, irrespective of whether the payment of the invoiced amount is made or not.

3. In case where multiple deliveries are required, or each goods item or service phase is accepted, it shall be mandatory to issue an invoice showing quantity, value of a good or service for each respective delivery or acceptance.

4. The Ministry of Finance shall consult regulations of the law on value-added tax and tax management to give specific guidance on the e-invoicing time in other cases and provisions laid down in this Article.

Article 8. E-invoice format

The Ministry of Finance shall promulgate specific regulations on the standard data format of the sales and service e-invoices.

Article 9. Legal e-invoices, illegal e-invoices

1. An e-invoice shall be considered legal if it meets the following requirements:

a) It conforms to provisions laid down in clause 5 Article 4, Article 6, 7, 8 hereof;

b) Integrity of information inscribed on that e-invoice must be ensured.

2. An e-invoice shall be considered illegal if it fails to meet requirements set out in clause 1 of this Article or it falls into cases referred to in clause 9 and clause 10 Article 3 hereof.

Article 10. Conversion of e-invoices into paper vouchers

1. Legal e-invoices may be converted into paper vouchers.

2. Contents of an e-invoice which is converted into a paper voucher must correspond to those of the paper document.

3. In case where an electronic invoice is converted into a paper voucher, the paper voucher shall be retained for book and monitoring purposes only in accordance with the law on accounting and the law on electronic transactions, and shall not be valid for use in transactions or payments, except for cases where invoices are created from POS cash registers with network connections for electronic data transfer to tax authorities under the provisions of this Decree.

Article 11. Preservation, storage and destruction of e-invoices

1. E-invoices must be preserved and stored by electronic means.

2. Entities, organizations and individuals shall be entitled to select and use methods of storage and archival of e-invoices suitable to their business conditions and technological applicability.

3. E-invoices must be stored and archived to ensure:

a) Safety, security, integrity, completeness, avoidance of any change or deviation during the storage and archival period;

b) They are stored and archived for a period specified in the accounting legislation;

c) They can be printed out or searched upon request.

4. Unless otherwise prescribed by regulations issued by competent state authorities, an e-invoice whose storage life expires shall be destroyed. The destruction of e-invoices must avoid causing any impact on the integrity of the invoice data messages that have not been destroyed and the normal operation of the information system.

Article 12. Use of e-invoices for sale of goods and provision of services

1. Enterprises, economic or other organizations shall use e-invoices with the tax authority’s identification code for their provision of goods or services, regardless of value of each provision of goods or services.

2. If enterprises doing business in the following sectors: electricity, petroleum, post and telecommunications, air transport, road transport, rail transport, sea transport, inland water transport, clean water, finance and credit, insurance, healthcare, electronic commerce, supermarket business, commerce, and enterprises or economic organizations, which have already transacted or will transact with tax authorities via electronic means, develop information technology infrastructure and use accounting software and e-invoicing software systems that meet the needs of e-invoicing and access to e-invoices, store e-invoice data in accordance with regulations and ensure the electronic data transfer to buyers and tax authorities, e-invoices without the tax authority s identification code may be used (except for the case stated in clause 3 of this Article and the case in which the registration for use of e-invoices with the tax authority s identification code is required) for their provision of goods or services, irrespective of value of each provision of goods or services.

3. Enterprises, economic or other organizations that pose high risks related to taxes shall be required to use e-invoices with the tax authority’s identification code for their provision of goods or services, regardless of value of each provision of goods or services.

4. Business households or individuals keeping accounting records, regularly hiring at least 10 employees and earning the preceding year’s revenue which equals at least 03 (three) billion dong in the agriculture, forestry, aquaculture, industry or construction sector, or gaining the preceding year’s revenue equaling at least 10 (ten) billion dong in the commerce and service sector, shall be obliged to use e-invoices with the tax authority s identification code for their provision of goods or services, irrespective of value of each provision of goods or services. If business households or individuals that are not bound to use e-invoices keep their accounting records and wish to use e-invoices, they may use e-invoices with the tax authority s identification code as prescribed by laws.

5. Business households or individuals doing business in such sectors as restaurant, hotel, modern medicine retailing, retailing of fast-moving consumer goods and online provision of services to consumers at certain areas having disadvantageous conditions shall have access to pilot e-invoices with the tax authority s identification code which are created by POS cash registers with network connections for electronic data transfer to tax authorities from 2018. Based on the piloting outcomes, the official use of e-invoices shall be allowed across the nation.

6. If business households and individuals that do not satisfy the regulatory requirements that bind them to use e-invoices with the tax authority s identification code as set out in clause 4 of this Article, but need invoices issued to their customers, or if enterprises, economic or other organizations obtains the tax authority’s approval to use e-invoices to issue to their customers, they shall be entitled to receive e-invoices with the tax authority s identification code from the tax authority at each time when a transaction occurs, and shall be obligated to make tax declaration and payment before the tax authority grants them access to e-invoices at each time when a transaction occurs by using the Form No. 06 hereto appended.

7. The Ministry of Finance shall elaborate on cases where use of e-invoices with the tax authority’s identification code, or e-invoices with the tax authority’s identification code created from POS cash registers with network connections for electronic data transfer to tax authorities, are allowed; shall give guidance on use of e-invoices by those enterprises or organizations posing high risks related to taxes; shall build connections for electronic data transfer from commercial banks or national electronic payment web portals to tax authorities; shall provide guidance on the grant of access to e-invoices with the tax authority’s identification code and on the declaration made for determination of tax obligations when the tax authority issues these e-invoices at each time when a transaction occurs, as well as on other necessary contents in conformity with regulatory requirements.

Article 13. Provision of e-invoice services

1. When providing services related to e-invoices with tax authorities’ identification codes, the General Department of Taxation shall not charge enterprises, economic organizations, business households or individuals falling into the following situations for these services:

a) Small- and medium-sized enterprises, cooperatives, business households and individuals that operate at areas facing socio-economic difficulties or extreme socio-economic difficulties;

b) Small- and medium-sized creative startups prescribed by soft laws and business households or individuals that are transformed into enterprises (except those stated in point a of this clause) within a period of 12 months after their establishment;

c) Business households or individuals earn the preceding year’s revenue which equals at least 03 (three) billion dong in the agriculture, forestry, aquaculture, industry or construction sector, or gain the preceding year’s revenue equaling at least 10 (ten) billion dong in the commerce and service sector, as provided in clause 4 Article 12 hereof within a period of 12 months from the month of use of e-invoices with tax authorities’ identification codes under the provisions of this Decree;

d) Other small- and medium-sized enterprises which are defined according to the requests of the People’s Committees of centrally-affiliated cities and provinces, and the regulations of the Ministry of Finance, except enterprises operating at economic zones, industrial parks or hi-tech zones;

dd) Those falling into other cases in which they are entitled to incentive policies under the decision issued by the Ministry of Finance.

2. The General Department of Taxation shall provide or entrust e-invoice service providers to provide e-invoices with tax authorities’ identification codes for free for those specified in clause 1 of this Article.

3. Organizations providing e-invoice services shall be allowed to charge for their services as agreed upon under the contract between service providers and customers that may be enterprises, economic organizations, business households or individuals that are not prescribed in clause 1 of this Article.

Chapter II

USE AND MANAGEMENT OF E-INVOICES

Section 1. USE AND MANAGEMENT OF E-INVOICES WITH TAX AUTHORITIES’ IDENTIFICATION CODES

Article 14. Registration for use of e-invoices with tax authorities’ identification codes

1. Enterprises, economic or other organizations, business households or individuals falling into the cases in which they are required to use e-invoices with tax authorities’ identification codes in accordance with clause 1, clause 3, clause 4 Article 12 hereof shall register for the access to e-invoices with tax authorities’ identification codes at the Web Portal of the General Department of Taxation.

The registration information is provided in the Registration Form No. 01 hereto appended.

2. The tax authority shall be responsible for sending enterprises, economic or other organizations, business households or individuals a written notification of acceptance or refusal of the registration for permission to use e-invoices with the tax authority’s identification code, prepared according to the Form No. 02 hereto appended, through the Web Portal of the General Department of Taxation within 1 working day after receipt of the application for registration for use of e-invoices from these enterprises, economic or other organizations, business households or individuals.

3. From the date on which e-invoices with the tax authority s identification code are used, enterprises, economic or other organizations or business households or individuals shall be bound to destroy paper invoices which remain unused (if any) in accordance with regulations in force.

4. In case where there is any change in information provided to register use of e-invoices as prescribed in clause 1 of this Article, enterprises, economic or other organizations, business households or individuals shall make such change and re-submit their registration information by using the Form No. 01 hereto appended.

5. The in-charge tax authority shall check which enterprises, economic organizations, business households or individuals use e-invoices with tax authorities identification codes without having to pay charges and send a notification by using the Form No. 07 hereto appended to those bound to change to e-invoices with tax authorities identification codes through organizations providing e-invoice services under the provisions of this Decree.

6. The Ministry of Finance shall provide specific guidance on this Article.

Article 15. Suspension of use of e-invoices with tax authorities’ identification codes

1. The tax authority shall cease to grant access to e-invoices in the following cases:

a) Enterprises, economic or other organizations, business households or individuals have their tax identification numbers which are invalidated;

b) Enterprises, economic or other organizations, business households or individuals fall into the cases in which tax authorities verify and inform that they are not operating at the registered addresses;

c) Enterprises, economic or other organizations, business households or individuals inform their temporary business closure to competent regulatory authorities;

d) Enterprises, economic or other organizations or business households or individuals receive the tax authority’s notification of suspension of use of e-invoices for the purpose of enforcement of payment of tax debts owed;

dd) Those fall into other cases under the regulations of the Ministry of Finance.

2. Enterprises, economic or other organizations or business households or individuals defined in clause 1 of this Article shall be allowed to continue to use e-invoices with tax authorities’ identification codes after informing tax authorities of business continuation, if their tax identification codes are given back by tax authorities, or if they obtain the decision on cancellation of enforcement of payment of tax debts owed.

3. In case where enterprises, economic or other organizations or business households or individuals whose business is temporarily closed need e-invoices to be issued to buyers to execute contracts which have already been signed prior to the date on which the tax authority sends a notification of temporary closure, they shall send the tax authority a written notification of continuation in use of their e-invoices.

4. The Ministry of Finance shall provide specific guidance on this Article.

Article 16. Creation, issue of the code and delivery of e-invoices with tax authorities identification codes

1. Creating e-invoices with tax authorities identification codes

a) If enterprises, economic or other organizations, business households or individuals covered by clause 1 Article 13 hereof wish to sign up for access to e-invoices at the Web Portal of the General Department of Taxation, they can use their log-in accounts granted after they complete their registration, following the steps below:

- Create sales and service e-invoices.

- Provide digital signatures and/or the electronic signatures on created e-invoices and send such e-invoices to the tax authority for its issue of e-invoice codes.

b) In case of using e-invoices with tax authorities’ identification codes through organizations providing e-invoice services, enterprises, economic or other organizations, business households or individuals shall access the electronic information websites of these organizations or use their e-invoice software to:

- create sales and service e-invoices.

- affix their digital signatures and/or the electronic signatures on the created e-invoices and send such e-invoices to the tax authority for its issue of e-invoice codes.

2. Issuing e-invoice codes

a) E-invoices of which codes are issued by tax authorities must meet the following requirements:

- The information shown on the e-invoices are the same as the registration information in accordance with Article 14 hereof.

- The format of the e-invoices is the same as the format prescribed in Article 8 hereof.

- Their contents must be the same as those prescribed in Article 6 hereof.

- These e-invoices are not subject to the tax authority s decision on revocation of e-invoices with tax authorities’ identification codes under the provisions of clause 1 Article 15 hereof.

b) The code issuing system of the General Department of Taxation automatically issues the e-invoice code and informs the code issuing results to senders.

3. Enterprises, economic or other organizations, business households or individuals that sell goods or provide services shall be responsible for sending e-invoices with tax authorities’ identification codes to buyers. E-invoice sending and receiving methods shall be subject to the agreement between the buyer and the seller.

Article 17. Handling of e-invoices containing errors after issue of e-invoice codes

1. In case where it is discovered that e-invoices with tax authorities’ identification codes which have not been sent to buyers contain errors, sellers shall inform the tax authority by using the Form No. 04 hereto appended of cancellation of the e-invoices with tax authorities’ identification codes which have been created and contain errors, and prepare new e-invoices with digital signatures and/or electronic signatures for submission to the tax authority for its issue of new e-invoice codes in place of the previous ones before sending them out to buyers.

2. In case where it is discovered that e-invoices with tax authorities’ identification codes which have already been sent to buyers contain errors, sellers and buyers shall enter into a written agreement clearly stating errors or inform e-invoices containing errors (if these errors are caused through sellers’ fault) and sellers shall inform the tax authority by using the Form No. 04 hereto appended of cancellation of the e-invoices with tax authorities’ identification codes which have been created and contain errors, and prepare new e-invoices with digital signatures and/or electronic signatures for submission to the tax authority for its issue of new e-invoice codes in place of the previous ones before sending them out to buyers.

3. In case where the tax authority discovers that e-invoices with tax authorities’ identification codes contain errors, it shall inform sellers by using the Form No. 05 hereto appended in order for sellers to check these errors. Within duration of 02 days of receipt of the notification from the tax authority, sellers shall inform the tax authority by using the Form No. 04 hereto appended of cancellation of the e-invoices with tax authorities’ identification codes which have created and contain errors, and prepare new e-invoices with digital signatures and/or electronic signatures for submission to the tax authority for its issue of new e-invoice codes in place of the previous ones before sending them out to buyers.

4. The Ministry of Finance shall elaborate on the handling of e-invoices containing errors after issue of e-invoice codes as prescribed in this Article.

Article 18. Responsibilities of providers of goods or services using e-invoices with tax authorities’ identification codes

1. Manage names and passwords of the accounts which have been issued by the tax authority.

2. Create sales or service e-invoices sent to the code-issuing tax authority and bear legal liability for accuracy and legitimacy of these e-invoices.

3. Send e-invoices with the tax authority s code to the buyer immediately after receipt of them.

4. Store and ensure integrity of all e-invoices; comply with legislative regulations on assurance of safety and security for the electronic data system.

5. Submit to the inspection, audit and checking conducted by competent regulatory authorities in accordance with laws.

Article 19. Emergency responses

1. Upon using e-invoices with tax authorities identification codes, if providers of goods or services face any failure preventing them from using these e-invoices, they shall take initiative in informing the in-charge tax authority to seek its solutions. During the period when any failure or emergency is solved, if providers of goods or services wish to use e-invoices with tax authorities identification codes, they need to contact the tax authority to use e-invoices with tax authorities’ identification codes.

2. The Ministry of Finance shall provide specific guidance on responses to any failure or emergency caused by errors of the code issuing system of the tax authority and develop standby plans in order to ensure the continuous and regular issue of e-invoice codes (24/7 service).

Section 2. USE AND MANAGEMENT OF E-INVOICES WITHOUT TAX AUTHORITIES’ IDENTIFICATION CODES

Article 20. Registration for use of e-invoices without tax authorities’ identification codes

1. Enterprises and economic organizations falling into the cases in which they are required to use e-invoices without tax authorities’ identification codes in accordance with clause 2 Article 12 hereof shall register for the access to e-invoices without tax authorities’ identification codes at the Web Portal of the General Department of Taxation.

Information about registration for or changes in use of these -e-invoices is given in the Form No. 01 hereto appended.

2. The tax authority shall be responsible for sending a written notification of acceptance or refusal of the registration for permission to use e-invoices without the tax authority’s identification code, prepared according to the Form No. 02 hereto appended, through the Web Portal of the General Department of Taxation within 01 working day after receipt of the application for registration for use of e-invoices from enterprises and economic organizations.

3. From the date on which e-invoices without the tax authority s identification code are used, enterprises and economic organizations shall be bound to destroy paper invoices which remain unused (if any).

4. If the tax authority refuses to accept the registration for permission to use e-invoices without tax authorities identification codes, enterprises and economic organizations shall be bound to register for use of e-invoice with tax authorities identification codes.

5. The in-charge tax authority shall check which enterprises and economic organizations use e-invoices without tax authorities identification codes and send a notification by using the Form No. 07 hereto appended to those bound to change to e-invoices with tax authorities identification codes under the provisions of this Decree.

6. The Ministry of Finance shall provide specific guidance on this Article.

Article 21. Creation and sending of e-invoices without tax authorities identification codes

1. Enterprises and economic organizations shall use e-invoices without the tax authority’s identification code for their provision of goods or services after receipt of the notification of acceptance from the tax authority.

2. Enterprises and economic organizations using software to create e-invoices for their provision of goods or services shall carry their digital signatures on e-invoices and send them to buyers by electronic means according to the arrangement between the seller and the buyer.

Article 22. Suspension of e-invoices without tax authorities’ identification codes

1. Providers of goods or services that are enterprises or economic organizations falling into the cases prescribed in clause 1 Article 15 hereof shall not be allowed to issue e-invoices without tax authorities’ identification codes to buyers.

2. Providers of goods or services that are enterprises or economic organizations as prescribed in clause 2, clause 3 Article 15 hereof shall be allowed to continue to use these e-invoices after they have informed the tax authority.

3. The Ministry of Finance shall provide specific guidance on this Article.

Article 23. Responsibilities of providers of goods or services using e-invoices without tax authorities’ identification codes

1. Create sales or service e-invoices sent to buyers and bear legal liability for accuracy and legitimacy of these e-invoices.

2. Transfer data of the created e-invoices to the tax authority through the Web Portal of the General Department of Taxation (directly or via organizations providing e-invoice services).

3. Store and ensure integrity of all e-invoices; comply with legislative regulations on assurance of safety and security for the electronic data system.

4. Submit to the inspection, audit and checking conducted by competent regulatory authorities in accordance with laws.

5. The Ministry of Finance shall issue specific regulations on transfer and receipt of data of the e-invoices without tax authorities’ identification codes which correspond to the actual business conditions of providers of goods or services and regulatory requirements.

Article 24. Handling of the available e-invoices without tax authorities identification codes

1. In case where enterprises or economic organizations have created e-invoices without tax authorities’ identification codes which contain errors and issued them to buyers (such errors are discovered by either sellers or buyers), sellers and buyers shall enter into a written agreement clearly stating these errors, and sellers shall inform the tax authority by using the Form No. 04 hereto appended of cancellation of the e-invoices which have been created and contain errors, and prepare new e-invoices in place of the previous ones before issuing them to buyers and the tax authority.

2. In case where, after receipt of e-invoice data, the tax authority discovers that e-invoices which have been created contain errors, it shall inform sellers by using the Form No. 05 hereto appended in order for sellers to check these errors. Within duration of 02 days of receipt of the notification from the tax authority, sellers shall inform the tax authority by using the Form No. 04 hereto appended of cancellation of the e-invoices without tax authorities’ identification codes, and prepare new e-invoices in place of the previous ones before issuing them to buyers and the tax authority.

3. The Ministry of Finance shall provide specific guidance on the handling of e-invoices without tax authorities’ identification codes that contain errors as prescribed in this Article.

Chapter III

FORMULATION, USE AND MANAGEMENT OF THE E-INVOICE DATABASE

Section 1. FORMULATION OF THE E-INVOICE DATABASE

Article 25. Establishment, collection, processing and management of the system of information about e-invoices

1. The General Department of Taxation shall be responsible for establishing, managing and developing the database and technical infrastructure of the system of information about e-invoices; organize the collection and processing of information, management of the e-invoice database and ensure maintenance, operation, confidentiality, safety and security of the e-invoice information system.

2. The General Department of Taxation shall collaborate with entities, organizations or individuals concerned in exchanging information and connecting to the online network.

3. The Ministry of Finance shall provide specific guidance on the establishment, collection, processing and management of the system of information about e-invoices.

Article 26. Responsibilities for data and information sharing and connection

1. Enterprises and economic organizations doing business in the following sectors: electricity, petroleum, post and telecommunications, air transport, road transport, rail transport, sea transport, inland water transport, clean water, finance and credit, insurance, healthcare, electronic commerce, supermarket business or trading shall use e-invoices and provide e-invoice data in accordance with regulations of the Ministry of Finance.

2. Credit institutions, commercial banks and institutions providing periodical payment services shall provide electronic data about payment transactions through accounts of organizations or individuals for tax authorities by using the standard data format decided by the Ministry of Finance.

3. Manufacturers and importers of products subject to special consumption taxes that are required to use stamps by laws shall make connections of information about printing and use of stamps and electronic stamps with tax authorities. Information about printing and use of electronic stamps shall serve as a basis for formulation, use and management of the e-invoice database. The Ministry of Finance shall provide guidance on printing and use of stamps prescribed in this clause and revenues gained from the issue of stamps shall be used for offsetting stamp printing and use costs.

4. Organizations and entities such as Market Surveillance Agency, General Department of Land Administration, General Administration of Mineral Resources, public security, transport and health authorities and other entities concerned shall make connections to share data and information necessary for use within their authority with the General Department of Taxation in order to set up the e-invoice database.

5. The Ministry of Finance shall provide specific guidance on this Article.

Section 2. SEARCHING, PROVISION AND USE OF E-INVOICE INFORMATION

Article 27. Subjects of application

1. Information provider: The General Department of Taxation.

2. Information users:

a) State regulatory authorities and competent persons who have legally prescribed demands for e-invoice information necessary for grant of the certificate of origin, verification of legitimacy of goods sold on the market and implementation of other administrative procedures.

b) Credit institutions that wish to use e-invoice information for their checking and verification before provision of banking and payment services as prescribed by laws.

c) Enterprises, economic organizations, business households or individuals that are providers of goods or services that need e-invoice information to complete procedures such as declaring revenues, tax obligations, and to verify the legitimacy of goods or services which have already been provided.

d) Organizations and individuals that are buyers of goods or services in need of e-invoice information to carry out the input VAT declaration (with respect to enterprises and organizations); check and verify the authenticity of input goods or services.

dd) Organizations providing e-invoice services that need e-invoice information to access the Web Portal of the General Department of Taxation and inquire it for searching of e-invoices.

Article 28. Principles of searching and use of e-invoice information

1. Information users shall access the Web Portal of the General Department of Taxation and inquire it to search e-invoice information.

2. The General Department of Taxation shall publicly disclose those entities or persons that use illegal e-invoices or illegally use e-invoices on the Web Portal of the General Department of Taxation to all entities and persons that wish to search e-invoice information.

3. In order to search e-invoice information, users enter the e-invoice information that they need at the Web Portal of the General Department of Taxation to search e-invoice contents.

4. In case where state regulatory authorities and competent persons specified in point a clause 2 Article 27 hereof wish to search information about management and use of e-invoices by sellers that are business organizations or individuals, the tax authority shall be responsible for providing e-invoice information for competent entities and persons concerned.

5. The General Department of Taxation shall be responsible for establishing the system used for automatically providing information.

Article 29. Searching of e-invoice information for inspection of goods currently sold on the market

1. When inspecting goods currently sold on the market, if e-invoices are used, competent regulatory authorities and persons may visit the Web Portal of the General Department of Taxation to search information about e-invoices to serve their administrative purposes and shall not be allowed to demand paper invoices. Entities concerned shall be responsible for using equipment for accessing and searching e-invoice data.

2. When any failure to search e-invoice data due to unexpected events, incidents or natural disasters causing impacts on the access to the Internet network occurs, if:

a) shippers of goods hold paper documents (including photocopies without signatures and stamps of buyers and sellers) transformed from e-invoices, they must present paper documents to state regulatory authorities and competent persons performing the task of inspection of goods. State regulatory authorities and competent persons performing the task of inspection shall consult paper documents transformed from e-invoices to grant the market authorization for the goods and proceed to search e-invoice data (at the entity or person presiding over registration with the General Department of Taxation) to serve checking purposes before deciding any likely actions in accordance with regulations in force;

b) shippers of the goods fail to hold paper documents transformed from e-invoices, state regulatory authorities and competent persons performing the task of inspection shall visit the Web Portal of the General Department of Taxation to check and confirm the enterprise’s e-invoices.

Article 30. Formulation of Regulations on provision and use of e-invoice information

The Ministry of Finance shall preside over and cooperate with relevant ministries and entities in issuing the Regulations on provision and use of e-invoice information.

Chapter IV

ORGANIZATIONS PROVIDING E-INVOICE SERVICES

Article 31. General provisions

1. If organizations operating in the information technology industry (including banks providing electronic transaction services as part of their banking activities, organizations providing electronic tax declaration services) have information technology infrastructure and e-invoicing software that fully meet the provisions of this Decree, they shall be licensed to provide e-invoice services.

2. Enterprises and organizations that have provided e-invoice services for enterprises before the entry into force of this Decree shall be entitled to continue to provide their e-invoice services and must strictly comply with provisions laid down herein.

Article 32. Selection of the organization operating in the information technology industry for award of the contract for provision of e-invoice services

1. Requirements that an organization operating in the information technology industry must meet to be eligible for winning the contract for provision of services relating to e-invoices with tax authorities identification codes, transmission and receipt of e-invoice data shall include the followings:

a) With respect to those subject to clause 1 Article 31 hereof:

That organization must be an enterprise or organization established as per Vietnamese laws and operates in the information technology sector.

b) With respect to finance:

That organization has received the guarantee commitment from a credit institution legally licensed in Vietnam to dealing with risks and compensating for any loss or damage that may arise in the course of provision of its services.

c) With respect to personnel:

That organization must employ technical personnel holding the undergraduate degree in the information technology major and acquiring practical experience in network and database administration.

That organization must assign technical personnel to carry out the 24h monitoring and check activities to maintain stability of the system for exchange of electronic data and give support to e-invoice users.

d) With respect to technical issues:

That organization must have equipment and technical systems that ensure services are provided to entities, organizations and individuals using electronic invoices and connections to the Web Portal of the General Department of Taxation are safe for 24 hours a day and 7 days a week, except for possible interruption occurring during the maintenance period. The maintenance period shall not exceed 2% of the total hours of service per a year; The organization must be capable of providing services through various types of devices, such as the user’s computers, tablets, smart phones.

The organization must ensure that it has the capability and ability to detect, warn and prevent illegal access and various attacks in the network environment in order to maintain the confidentiality and integrity of the data exchanged between the participating parties.

The organization must adopt the processes for data backup, online data backup and data recovery; ensure that it has the ability to recover data from the time when the electronic data exchange system encounters any problem. The organization must store and archive electronic vouchers for unfinished transactions in conformity with the requirement that the original electronic data message must be kept on the system and be accessed online. Electronic transaction logs must be stored and archived in accordance with the law soft on accounting from the time when the transaction is successful. The organization must ensure that the information stored in transaction logs is accessed online during the storage period.

The organization must meet requirements concerning the data connection standards issued by the Ministry of Finance.

2. The General Department of Taxation shall refer to the provisions laid down in clause 1 of this Article to sign contracts for provision of e-invoice services according to the processes specified in clause 3 of this Article with information technology organizations meeting all the prescribed conditions.

3. The processes for signing of the contract for provision of services relating to e-invoices with tax authorities identification codes and transfer and receipt of e-invoice data.

a) Information technology organizations meeting all requirements set out in clause 1 of this Article shall send a written request for signing of the contract for provision of e-invoice services together with the scheme for provision of services, whether in the paper or electrical form, clearly indicating which contents meet requirements set out in clause 1 of this Article, to the General Department of Taxation;

b) Within 10 working days from the date on which the e-invoice service provider meets the requirements prescribed in clause 1 of this Article and successfully makes a connection to the General Department of Taxation, the General Department of Taxation shall sign a contract with the e-invoice service provider.

4. The Ministry of Finance shall provide specific guidance on this Article.

Article 33. Relationship between organizations providing e-invoice services and service buyers

The relationship between organizations providing e-invoice services (sellers) and other organizations or individuals (buyers) shall be established under the contract for provision of e-invoice services.

1. Rights and obligations of organizations providing e-invoice services

a) Rights of organizations providing e-invoice services

- Enter into a written contract with the buyer for the provision and use of e-invoice services, clearly stating responsibilities of the parties involved in the e-invoices and responsibilities for ensuring information security.

- Have the right to refuse to provide e-invoice services for individuals or organizations that are not eligible to take part in transactions or are in breach of the contract.

- Collect e-invoice service charges from the buyers in order to maintain operations agreed upon in the contract.

b) Obligations of organizations providing e-invoice services:

- Issue the public notice of their operational regime and service quality on their websites designed for giving introduction to their services.

- Provide services relating to transmission and receipt of e-invoices and e-invoice data between the buyers and tax authorities.

- Send, receive e- invoices on time and in an integral manner as agreed upon with the parties involved in the transaction.

- Store and archive the results of transmission and receipt of e-invoices.

- Inform the buyers and tax authorities within the maximum period of 30 days from the date of temporary business closure of the system shut down for maintenance purposes and actions to be taken to ensure all benefits and interests of the buyers are maintained.

- Bear responsibility for any delay in delivering the buyers’ e-invoices to tax authorities by the prescribed deadline if the buyers have finished issuing e-invoices by that deadline.

- Ensure data security for the customer’s e-invoice information.

2. Rights and obligations of the buyers

a) Rights of the buyers:

Obtain the e-invoice service provider’s guarantee for security of data about the customer’s e-invoice information.

b) Obligations of the buyers:

- Strictly observe terms and conditions of the contract with the organization providing e-invoice services.

- Enable organizations providing e-invoice services to implement measures to guarantee systematical safety and security.

- Assume legal liability for information inscribed on their e-invoices.

Article 34. Relationship between organizations providing e-invoice services and tax authorities

Organizations providing e-invoice services must comply with requirements set out in agreements with tax authorities in the course of providing e-invoice services.

1. Rights and obligations of organizations providing e-invoice services

a) Rights of organizations providing e-invoice services:

- Have access to the Web Portal of the General Department of Taxation to render e-invoice services.

- Receive the tax authority’s support in terms of tax affairs in order to carry out the transaction relating to transmission and receipt of e-invoice information between tax payers and tax authorities.

- Obtain permission to participate in cooperation with tax authorities in training tax payers for provision of e-invoice services.

- Receive the tax authority’s support for handling of any difficulty or problem that may arise in the course of provision of e-invoice services.

- Have access to standard forms provided by tax authorities to render their e-invoice services.

b) Obligations of organizations providing e-invoice services:

- Organizations providing e-invoice services shall only provide e-invoice services for buyers by the date specified in agreements with the General Department of Taxation.

- Have the burden of transferring e-invoices with the tax authorities’ identification codes and e-invoice data (for cases where taxpayers use e-invoices without tax authorities’ identification codes) to the Web Portal of the General Department of Taxation immediately after receiving e-invoices from the buyers.

- Provide the full number of data and information to tax authorities upon request in accordance with laws.

- Comply with existing legislative regulations on telecommunications, Internet and other technical and professional regulations issued by competent authorities.

- Assume responsibilities for building channels for data connections to the Web Portal of the General Department of Taxation to ensure continuity, security and safety of these connections.

- Take initiative in dealing with any difficulty or issue arising in the course of rendering e-invoice services and inform tax authorities to cooperate in dealing with any possible difficulty or problem relating to the Web Portal of the General Department of Taxation.

- In case where there is any error occurring on Web Portals of organizations providing e-invoice services, they must immediately inform buyers and tax authorities to follow instructions provided by the General Department of Taxation.

2. Responsibilities of the General Departments of Taxation

a) Set up, maintain and ensure connections between the Web Portal of the General Department of Taxation and organizations providing e-invoice services;

b) Check operations of organizations providing e-invoice services to ensure service quality and compliance with regulations in force;

c) Provide information for organizations providing e-invoice services to help prevent enterprises from illegally issuing e-invoices.

Chapter V

IMPLEMENTATION PROVISIONS

Article 35. Effect

1. This Decree takes effect on November 01, 2018.

2. The implementation of e-invoices and e-invoices with tax authorities’ identification codes as provided by this Decree shall be completed by enterprises, economic or other organizations, business households and individuals by November 01, 2020.

3. During the period from November 1, 2018 to October 31, 2020, the Decree No. 51/2010/ND-CP dated May 14, 2010 and the Decree No. 04/2014/ND-CP dated January 17, 2014 of the Government on sales and service invoices shall remain in effect.

4. From November 1, 2020, to repeal the Decree No. 51/2010/ND-CP dated May 14, 2010 and the Decree No. 04/2014/ND-CP dated January 17, 2014 of the Government on sales and service invoices.

Article 36. Transition provisions

1. Enterprises and economic organizations that have informed the issue of e-invoices without tax authorities identification codes or have registered the use of e-invoices with tax authorities identification codes before the entry into force of this Decree shall be allowed to continue to use existing e-invoices from its effective date.

2. Enterprises, economic organizations, business households or individuals that have informed the issue of externally printed or internally printed invoices or have purchased invoices issued by the tax authority for use before the entry into force of this Decree shall be entitled to continue to use these invoices until end of October 31, 2020 and follow invoice-related procedures as provided in the Decree No. 51/2010/ND-CP dated May 14, 2010 and the Decree No. 04/2014/ND-CP dated January 17, 2014 of the Government prescribing sales and service invoices.

During the period from November 1, 2018 to October 31, 2020, after receipt of the tax authority’s notification of use of e-invoices with tax authorities’ identification codes, if the informed business fails to meet information technology infrastructure requirements and continue to use the aforesaid invoices, it must send its invoice data to the tax authority by using the Form No. 03 hereto appended and submit its VAT declaration. The tax authority shall create data about e-invoices of businesses in order to consolidate them into the e-invoice database and publish it on the Web Portal of the General Department of Taxation for searching of e-invoice data.

3. With respect to businesses newly established during the period from November 1, 2018 to October 31, 2020, if the tax authority informs businesses of implementing e-invoices in accordance with this Decree, these businesses must follow the tax authority’s instructions. If any business continues to use invoices due to its failure to meet information technology infrastructure requirements as prescribed in the Decree No. 51/2010/ND-CP dated May 14, 2010 and the Decree No. 04/2014/ND-CP dated January 7, 2014 of the Government on sales and service invoices, that business must act like what those businesses prescribed in clause 2 of this Article do.

4. As for state-owned public service bodies (e.g. state-owned educational institutions, state-owned healthcare service providers) that have used receipts shall continue to use these receipts and make transformation into e-invoices (or electronic receipts) according to the schedule of the Ministry of Finance.

5. The Ministry of Finance shall provide specific guidance on this Article.

Article 37. Implementation responsibilities

1. The Ministry of Finance shall assume the following responsibilities:

a) Organize the implementation of e-invoices depending on information technology conditions of the tax industry and taxpayers as provided by this Decree;

b) Preside over and collaborate with the People’s Committees of cities and provinces in making information connections from POS cash registers in order to manage retailing revenues of business households and individuals in accordance with clause 5 Article 12 hereof;

c) Provide guidance on provisions which duties to implement are assigned in this Decree.

2. Ministries and central bodies shall collaborate with the Ministry of Finance in sharing and connection of related data and information necessary for use within their management to the Ministry of Finance in order to serve the needs of establishment of the e-invoice database and the state management needs of ministries and central bodies.

3. Ministers, Heads of Ministry-level agencies, Heads of Governmental bodies shall, depending on their assigned duties and powers, shall be responsible for implementing this Decree.

4. Chairpersons of People’s Committees of centrally-affiliated cities and provinces shall be responsible for directing their affiliates and subordinate units within their jurisdiction to comply with this Decree./.

For the Government

The Prime Minister

Nguyen Xuan Phuc