Vietnam Overhauls Electronic Invoicing Rules Effective July 2026

Vietnam is set to implement new electronic invoicing (e-invoicing) regulations effective July 1, 2026, under Decree No. 254/2026/ND-CP and Circular No. 91/2026/TT-BTC. These changes will affect invoice selection methods, issuance timing, registration, and error correction procedures, while also enhancing tax authority oversight. The updated framework emphasizes taxpayer identity checks and risk management. Businesses operating in Vietnam must identify the most appropriate invoicing process for each activity and sales channel, as requirements can differ for business-to-business (B2B) sales, consumer transactions, and exports. Under the new rules, the applicable invoicing method depends on the entity's activities, technical capabilities, and tax-risk classification. Key distinctions include invoices with a tax authority code, invoices without such a code, and invoices generated from cash registers connected to the tax authority’s data system. Entities required to use electronic invoices are categorized, with economic organizations generally using tax-authority-coded invoices unless they meet specific IT infrastructure and data transmission conditions and are not classified as high tax risk. Businesses selling directly to consumers, including those in retail, food and beverage, and hospitality, will predominantly use electronic invoices generated from cash registers connected to the tax authority’s data system, unless they have registered for other types. Furthermore, the decree details various types of electronic invoices, including VAT invoices, sales invoices, e-commerce invoices, and specialized invoices for public assets and national reserve goods. VAT invoices are primarily for organizations declaring VAT under the deduction method, while sales invoices are for those using the direct method. E-commerce invoices are for exporters meeting specific data transmission conditions. The decree also specifies precise issuance timings based on transaction types. For the sale of goods, including public assets and national reserve goods, issuance is generally tied to the time of transfer of ownership or usage rights to the buyer, regardless of payment status. For services, it is typically upon completion; however, if payment is collected before or during service provision, issuance may be required at the time of collection, subject to exceptions. Exports have specific deadlines related to customs clearance. For high-volume recurring services, data reconciliation completion dictates the issuance timing. These regulatory updates reflect Vietnam's ongoing efforts to strengthen tax compliance and enhance transparency within its single-party political system, aligning with broader digital transformation initiatives. Businesses are advised to review these changes, update their systems, and ensure their teams are adequately trained to maintain compliance and leverage the new framework effectively.