E-Invoicing in Vietnam: A Complete Guide for Businesses

Since July 2022, electronic invoicing has become mandatory for all businesses across Vietnam. E-invoices must follow strict technical requirements, including XML format, a digital signature, and a tax code issued by the General Department of Taxation (GDT). Businesses must register with the GDT to issue e-invoices, either with or without verification codes, depending on their size and sector. 

This guide covers everything you need to know about e-invoicing implementation in Vietnam, including definitions, implementation timelines, process steps, types of invoices, and who needs to comply.

What is E-Invoicing in Vietnam?

E-invoicing in Vietnam is a digital version of a traditional paper invoice, created, sent, and stored electronically. It has been legally recognized in the country since 2011, but e-invoicing implementation at full scale began more recently.

According to current e-invoice guidelines, the key technical requirements are as follows:

• Format: XML (Extensible Markup Language), the official standard for invoice data.
• Digital Signature: A secure digital signature must be included to authenticate the invoice.
• GDT Tax Code: The invoice must contain a unique tax code issued by the General Department of Taxation.

E-Invoicing Implementation Timeline

Here’s a look at the key milestones:

2018: National Introduction of E-Invoicing

The Vietnamese government officially introduced e-invoicing nationwide in 2018, signaling a major policy shift from manual paper invoicing to digital processes.

1 November 2020: Implementation Delayed

Despite early momentum, the full e-invoicing implementation was delayed to 2022. This postponement allowed time for infrastructure development and helped businesses prepare for the transition.

2021: Two-Phase Rollout Announced

To manage change efficiently, the government designed a two-phase rollout strategy:

• Phase I: Limited to six key provinces
• Phase II: National coverage after initial system testing

November 2021 – March 2022: Phase I Deployment

E-invoice in Vietnam was deployed in selected provinces. This pilot phase was crucial for identifying technical issues, providing support to early adopters, and fine-tuning the system.

April – July 2022: Phase II Deployment

The system was rolled out to all remaining provinces. Businesses across Vietnam were brought into the digital invoicing network.

1 July 2022: Mandatory Use of E-Invoicing

This is the official e-invoicing start date as it became mandatory for:

• Enterprises
• Economic organizations
• Business households

E-Invoicing Process in Vietnam

Here are the steps to get the e-invoicing process started:

Step 1: Apply via an e-invoice service provider or the GDT portal

Enterprises must complete the registration form Form No. 01/DKTD-HDDT (Appendix IA of Decree 123/2020/ND-CP). This includes:

• Type of invoice: With or without tax authority’s authentication code
• Email address for registration updates
• Other relevant company information

If using free authenticated invoices, businesses can apply through:

• The GDT web portal
• An authorized e-invoice service provider

If businesses plan to transmit invoice data directly to GDT, they must apply via the GDT portal.

Step 2: GDT acknowledges the application

The GDT portal sends an electronic notification confirming receipt of the application.

Step 3: Approval or request for revision

Within 1 working day, GDT will:

• Approve the registration via Form No. 01/TB-DKDT (Appendix IB), allowing the business to start issuing e-invoices

OR 

• Reject the application with revision instructions, in which case the business must correct and resubmit

Once approved, companies can issue e-invoices in real time.

Type of E-Invoices in Vietnam

Vietnam recognizes two main categories of e-invoices:

1. E-invoices without verification codes

Typically used by:

• Small and micro enterprises
• Companies with a < VND 3 billion annual turnover or < 10 employees
• Sectors like telecommunications, power, and e-commerce

Note: These invoices are primarily for accounting, not eligible for VAT or tax declarations. Businesses must still report them to GDT via certified service providers.

2. E-invoices with verification codes

Mandatory for:

• Businesses above the small enterprise threshold
• High-risk sectors like construction and agriculture
• Businesses that failed tax audits or invoice compliance checks
• Self-employed entrepreneurs

These invoices carry a unique verification code issued by the GDT and are valid for tax declarations.

How E-Invoices Work in Vietnam

Once approved by the GDT, businesses can begin generating e-invoices. Here's how the system works:

1. The business creates an invoice in XML format.
2. The invoice is sent to the GDT (either directly or via a service provider).
3. If verification is required, GDT generates a unique identification code and attaches it to the invoice. If no verification is required, the invoice is still logged in the GDT’s system.
4. The business sends the verified invoice to the buyer.

Benefits of E-Invoicing in Vietnam

Here are the key advantages of e-invoicing in Vietnam for businesses and the government alike:

• By requiring real-time or near-real-time reporting to the General Department of Taxation, every e invoice is traceable, making the entire system more transparent.
• E-invoicing removes printing, storage, delivery, and manual verification, leading to lower administrative costs, faster invoice generation and delivery, and instant invoice retrieval.
• Since e-invoices are submitted to the GDT, businesses are constantly updated with regulations and notifications from the tax department. 
• With automation and integration into accounting or ERP systems, errors from manual data entry drop significantly. Less back-and-forth with tax authorities means fewer delays.

How Can ClearTax Help a Business With E-Invoicing in Vietnam?

Here’s what ClearTax offers:

• Our software is aligned with GDT guidelines and ensures that every invoice you issue includes the required digital signature, format, and tax code.
• ClearTax seamlessly connects with your ERP or accounting software so you don’t have to change your workflow.
• Instantly transmit e-invoices to tax authorities with automated sync and submission features.
• Whether you need invoices with or without verification codes, ClearTax makes it easy to stay compliant based on your business type and industry.

Conclusion

E-invoicing in Vietnam became mandatory nationwide from July 1, 2022. Businesses must register with the General Department of Taxation to issue e-invoices in XML format with a digital signature. There are two types: with or without a verification code from the GDT. Larger or high-risk businesses need verification-coded invoices, while smaller ones use simpler versions.