Vietnam Tax Department Responds to E-invoice Exemption Requests from E-commerce Sellers

In Vietnam, there is a growing call from small businesses operating on e-commerce (EC) platforms to ease the electronic invoice (e-invoice) issuance obligation. These businesses argue that since EC platforms are already integrated with payment functions and transparently record transaction data, issuing additional e-invoices leads to increased administrative burden and costs. The General Department of Taxation of Vietnam has responded that, based on current laws and related decrees, the obligation to issue e-invoices will generally not be exempted. The tax authorities emphasize their stance that e-invoices are indispensable for enhancing tax management transparency and curbing fraudulent activities. This issue highlights the challenges faced by small and medium-sized enterprises (SMEs) and individual businesses as Vietnam's economy becomes increasingly digitalized. In Vietnam's one-party system, the central government's economic policies hold significant influence. While the government prioritizes economic growth and encourages the development of the digital economy, it also pursues tax revenue collection and the maintenance of a fair competitive environment. With the increase in EC businesses, tax authorities are rushing to establish new tax collection mechanisms, but consideration for the increased burden on businesses arising from this process is required. Regarding relations with China, Vietnam maintains economic ties while pursuing a cautious diplomacy that considers geopolitical balance. The current discussion on e-invoices indicates that domestic economic policies can affect even fine details, suggesting the complexity of the government's policy-making process. The tax authorities' response indicates a stance that prioritizes regulations at this time, in response to the demands for easing the burden on small businesses. However, it cannot be ruled out that a review of the system or flexible implementation may be required in the future to adapt to the expansion of the digital economy and the emergence of new business models that accompany it. Information Source: The Saigon Times