Clarification on multiple issues in invoice and documentation regulations
On March 20, 2025, the Government issued Decree No. 70/2025/ND-CP (“Decree 70”), amending and supplementing several provisions of Decree No. 123/2020/ND-CP on invoices and documents (“Decree 123”), with the aim of updating regulations concerning the time of issuance of invoices for certain types of business activities. The key updates in Decree 70 include the following:
Time of invoice issuance for export of goods and services
Decree 70 supplements the regulations regarding the time of issuance of invoices for the export of goods and provision of services to foreign organizations and individuals. Specifically as follows:
- For export of goods (including export processing), the seller is responsible for determining the time of issuing invoices, but the invoice must be issued no later than the next working day after the goods are cleared through customs in accordance with customs regulations.
- For export of services, the time of issuing invoices is when the service is completed, irrespective of whether payment has been received. If payment is made prior to or during the provision of the service, the invoice must be issued when payment is received, except for cases involving advance payments or deposits to secure services such as accounting, auditing, financial and tax consulting, valuation, technical surveys, design, supervision consulting, and investment project formulation.
Amending and supplementing regulations on time of invoice issuance in specific cases
Sale of goods and provision of services in large quantities or frequently recurring
In addition to the large-volume and frequently occurring goods and services already regulated under Decree 123, Decree 70 has introduced several new categories of goods and services, including railway transport support services, e-commerce services, banking services, securities services, online lottery services, and toll collection services between investors and toll service providers, as well as other cases as guided by the Minister of Finance.
Accordingly, the time of issuing invoices for these cases is the completion of data reconciliation between the parties, but no later than the 7th day of the month following the month in which the service was provided, or no later than 7 days after the end of the agreed period. The agreed period for determining the amount of goods and services provided is based on the agreement between the seller and the buyer.
Lending activities and foreign exchange agency activities, foreign exchange receipt and payment services
Decree 70 supplements regulations on the time of issuing invoices for lending activities. Specifically, the time of issuing invoices is determined based on the interest payment schedule in the loan agreement between the financial institution and the borrower.
In cases where interest is not collected by the due date and the financial institution tracks off-balance sheet under laws on credit, the invoice is issued when the interest payment is received. In cases of early interest payment under the loan agreement, the invoice is issued when the early interest payment is collected.
For foreign exchange agency activities, including the receipt and payment of foreign exchange services by credit institutions, the invoice must be issued at the time of the foreign exchange transaction or when the foreign exchange receipt and payment service is completed.
Supplementing applicable entities and content of electronic invoices generated from cash registers
Decree No. 123 did not provide regulations on the applicable entities for electronic invoices generated from cash registers, which caused difficulties for enterprises in using invoices. To address these challenges, Decree No. 70 specifically stipulates that entities eligible to use electronic invoices generated from cash registers include households businesses and individual businesses with an annual revenue of VND 1 billion or higher, as well as enterprises engaged in the sale of goods and provision of services, including sales of goods and services directed to consumers (shopping centers, supermarkets, retailing (excluding automobiles, motorcycles, motorbikes, and other motor vehicles), food and beverage services, restaurants, hotels, passenger transportation services, direct support services for road transport, artistic performances, entertainment, cinema operations, and other personal services in accordance with the Vietnamese Economic Industry Classification System) using electronic invoices generated from cash registers with data connectivity to the tax authority.
Additionally, Decree No. 70 also provides specific regulations on the content of such invoices to facilitate enterprises in issuing invoices. The required contents of electronic invoices generated from cash registers include: Name, address, and tax identification number of the seller; Name, address, tax identification number/personal identification number/phone number of the buyer, as required by regulations (if the buyer requests); Name of goods, services, unit price, quantity, and payment price. In cases where organizations or enterprises pay tax through deducting method, the invoice must clearly indicate the selling price excluding Value Added Tax, Value Added Tax rate, Value Added Tax price, and total payment including Value Added Tax; Time of invoicing; The tax authority’s code or electronic data enabling the buyer to retrieve and declare information from the electronic invoice generated from the cash register. The seller send the electronic invoice to the buyer electronically (via SMS, email, or other forms) or provide a link or QR code for the buyer to search and download the electronic invoice.
Overall, Decree 70/2025/ND-CP is a significant reform that contributes to improving the regulatory framework on invoices and documentation, facilitating businesses and tax authorities in fulfilling tax obligations and managing invoices.
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