Vietnam’s new e-invoicing system is a game-changer for businesses operating in the country. The system, which went into effect on January 1st, 2021, requires all businesses with annual revenue of more than VND 20 billion (approx. US $862,000) to issue e-invoices for their transactions. This will not only make it easier for the Vietnamese government to track and collect taxes, but it will also make it easier for businesses to comply with tax regulations. Here’s everything you need to know about Vietnam’s new e-invoicing system.
What is an E-invoice?
An e-invoice, also known as an electronic invoice or online invoice, is an invoice that is issued and processed electronically. In Vietnam, businesses will be required to generate e-invoices using the Ministry of Finance’s E-Invoice Issuance System (EIS). The EIS is a web-based application that businesses can use to generate, manage, and store their e-invoices.
How Does the E-invoice System Work?
The Vietnamese government has set up a central repository where all e-invoices must be stored. Businesses will be required to submit their e-invoices to this repository on a monthly basis. The repository will then provide businesses with a report that includes information such as the value of goods and services sold, the tax amount owed, and the payment deadline.
What are the Benefits of the E-invoice System?
The benefits of the e-invoice system are twofold. First, it will make it easier for businesses to comply with tax regulations. Second, it will help the Vietnamese government track and collect taxes more effectively. In addition, the new system will help reduce paper waste and save businesses money on printing and postage costs.
Vietnam’s new e-invoicing system is a win-win for both businesses and the government. Businesses will benefit from increased compliance with tax regulations, while the government will be able to track and collect taxes more effectively. If you’re doing business in Vietnam,make sure you’re up to date on the new requirements so you can take advantage of the benefits of this new system!