Vietnam Enhances Taxpayer Support with E-Invoice Implementation

Vietnam is set to bolster its tax administration by fully implementing e-invoices and enhancing taxpayer support, aligning with the new Tax Administration Law (No. 108/2025/QH15) and related decrees that take effect from July 1, 2026. This strategic shift aims to modernize tax management, making it more transparent, data-driven, and risk-oriented, moving from a purely administrative approach to one that actively serves and supports taxpayers. Mai Xuan Thanh, Director General of the General Department of Taxation, outlined the sector's priorities. These include the continuous acceleration of administrative reforms, a significant reduction and simplification of tax procedures, and a marked improvement in the quality of service provided to taxpayers. A central pillar of this strategy is the comprehensive digital transformation of tax management, which involves strengthening data connectivity and sharing to progressively automate processes such as registration, declaration, and tax payment. Thanh also stressed the commitment to reinforcing discipline and order in public service execution, with a firm stance against any acts of harassment, negativity, or extortion targeting citizens and businesses. Addressing the specific needs of individual and small-scale businesses, Mai Son, Deputy Director General of the General Department of Taxation, assured that the new tax law has been formulated with the principle of maximizing convenience for all business entities. He clarified that following the effective date of July 1, 2026, the primary responsibility of the tax authorities will be to provide effective guidance and support to ensure taxpayers comply with legal regulations. The tax sector is dedicated to administrative reform and the comprehensive renewal of tax management. This includes advancing digital transformation and expanding data sharing and connectivity among various state management agencies. The plan is to effectively utilize data related to personal identification, e-invoices, and cashless payments to generate suggested tax declarations, thereby assisting taxpayers and reducing the need for manual input. In a forward-looking move, Vietnam is integrating AI chatbots into its eTax Mobile application to provide support for businesses and individual entrepreneurs. The authorities also intend to further develop question-and-answer systems for policies and procedures, enabling interaction through various channels including text messages and voice. Significant changes are mandated for individuals and businesses. According to Nguyen Thi Thanh Hang, Head of the E-invoice Policy Department (General Department of Taxation), from July 1, 2026, individuals and businesses with an annual revenue exceeding VND 1 billion (approximately $40,000 USD) will be required to use e-invoices. These can either be e-invoices with a tax authority code or e-invoices generated directly from point-of-sale (POS) cash registers. Ba Hang summarized the core requirements stemming from these new regulations into three key points: first, unified revenue management across all sales channels; second, invoices must be linked to transactions and issued at the correct time; and third, data must be connected and shared between sellers, platforms, and tax authorities for reconciliation. The nationwide rollout of this initiative was facilitated through live broadcasts to 34 provincial tax departments and 350 grassroots tax offices. The proceedings were also streamed live on the Government Information Portal and the Government Electronic Newspaper, alongside other digital platforms of the Government Information. Source: Nhan Dan