Tiếng Việt- 1 Law No. 38/2019/QH14 dated June 13, 2019 on Tax administration
- 2 Decree No. 123/2020/ND-CP dated October 19, 2020 on prescribing invoices and records
- 3 Decision No. 942/QD-TTg dated June 15, 2021 on approving strategy for development of e-Government towards digital Government for 2021 - 2025 with orientations towards 2030
- 4 Circular No. 78/2021/TT-BTC dated September 17, 2021 on providing guidance on Law on Tax Administration, and Government’s Decree No. 123/2020/ND-CP prescribing invoices and records
| THE MINISTRY OF FINANCE OF VIETNAM | THE SOCIALIST REPUBLIC OF VIETNAM |
| No.: 1799/BTC-TCT | Hanoi, February 24, 2022 |
To:
- Secretaries of provincial/municipal committees of Vietnamese Communist Party;
- Chairpersons of provincial People's Committees.
There are a lot of positive results of tax collection management achieved over the last period, thanks to the assistance and cooperation in giving guidelines of provincial/municipal committees of Vietnamese Communist Party as well as provincial People's Committees. Reform and modernization tasks in taxation sector have been gradually and efficiently performed. The Ministry of Finance of Vietnam would like to express a sincere gratitude to your assistance and close cooperation in directing and giving guidelines on tax collection in your provinces which are considered an important contribution to the successful completion of both provincial and national socio-economic tasks.
On June 13, 2019, the 14th National Assembly of Vietnam has ratified the Law on tax administration No. 38/2019/QH14 which comes into force from July 01, 2020.
In order to implement the Law on tax administration No. 38/2019/QH14, the Government has also promulgated the Decree No. 123/2020/ND-CP prescribing invoices and records on October 19, 2020. Regulations on management and use of electronic invoices are considered the most important contents of the Decree No. 123/2020/ND-CP. It stipulates that all enterprises, business entities, household and individual businesses are required to use electronic invoices from July 01, 2022 (except cases where eligibility requirements to use electronic invoices are not yet satisfied), and authorities, organizations and individuals that meet IT infrastructure requirements are encouraged to apply regulations on electronic invoices before July 01, 2022.
On September 17, 2021, the Ministry of Finance of Vietnam has promulgated the Circular No. 78/2021/TT-BTC providing guidance on the Law on Tax Administration dated June 13, 2019, and the Government’s Decree No. 123/2020/ND-CP dated October 19, 2020 prescribing invoices and records.
These legislative documents have enormous significance in adopting new methods of management and use of electronic invoices and saving costs for enterprises and society. To be specific:
(i) For buyers of goods/services:
...
...
...
- Costs incurred from use of electronic invoices are smaller than those incurred from use of physical invoices (enterprises must not incur costs of printing paper, ink, transport and storage of invoices, and space for invoice storage is not required, etc.).
- Costs incurred from following administrative procedures in tax sector are reduced.
- Risks of loss, damage or burning of physical invoices are eliminated.
- Buyers of goods/services feel safe when using electronic invoices because they may check information on the electronic invoice on the tax authority's system after receiving it from the seller.
(ii) For goods sellers/service providers:
- Strict compliance with regulations on invoices and records by organizations and individuals will create a healthy and fair business environment for taxpayers, and thus facilitate enterprises’ business operations.
- Administrative procedures in connection with invoices are minimized; costs incurred from sending, storage and retention of invoices as well as risks of invoice loss are reduced.
(iii) For society:
- Methods of serving the people, management and organization methods of tax authorities are changed towards automation in order to reform administrative procedures, facilitate, reduce costs and improve profits of enterprises.
...
...
...
- E-commerce and digital platform-based business models are developed to meet global development trends.
- Use of electronic invoices aims to promoting digital transformation by enterprises, finance authorities and other regulatory authorities.
- Common interests are brought to the society such as saving of costs, natural resources, human resources and environmental protection.
(iv) For tax authorities and relevant regulatory authorities:
- Use of electronic invoices helps tax authorities build invoice database; combine invoice information with other tax administration information for building a complete taxpayer database to serve the performance of information analysis tasks which aim to serving management, forecasting and assisting taxpayers in complying with tax laws and managing risks in tax administration.
- Management methods are changed with a view to applying information technology and improving operational processes towards automatic data processing and control to facilitate efficient use of resources and costs, etc. by tax authorities.
- Use of invoices by enterprises of which owners have made getaway or been missing as well as tax fraud or tax evasion are promptly prevented.
In order to use electronic invoices, the Ministry of Finance has promulgated a decision to apply electronic invoices in the 2nd period in 57 provinces and cities since April, 2022. There is not more than a month left from now till April, 2022, but there are still a lot of works and complex issues that need to be resolved, so you are requested to cooperate in giving guidelines for performing the following key tasks regarding use of electronic invoices in your provinces. To be specific:
1. Direct Provincial Departments of Taxation to:
...
...
...
- Proactively cooperate with Provincial Departments of Information and Communications and provincial press and broadcasting agencies to promptly disseminate information on benefits of the use of electronic invoices and new regulations on electronic invoices set out in the Law on tax administration, Decree No. 123/2020/ND-CP and Circular No. 78/2021/TT-BTC. Contents of information dissemination appropriate to each group of entities should be prepared and provided adopting various methods of information dissemination during implementation of this document;
- Review and classify taxpayers that are local enterprises, business entities, household and individual businesses, and eligible to use electronic invoices as prescribed, and inform them of relevant regulations from the starting date of use of electronic invoices; prepare information technology facilities to issue and transmit data on electronic invoices to tax authorities, send electronic invoices to buyers, and other regulations on management and use of electronic invoices;
- Review and inform local electronic invoice service providers of use of electronic invoices so that they can establish information technology facilities that are qualified to provide electronic invoice services in accordance with regulations of the Law on tax administration, Decree No. 123/2020/ND-CP and Circular No. 78/2021/TT-BTC;
- Organize training for taxpayers and tax officials in use of electronic invoices in accordance with regulations of the Law on tax administration, Decree No. 123/2020/ND-CP and Circular No. 78/2021/TT-BTC so as to ensure the efficient use of electronic invoices;
- Establish management centers and publish their hotline numbers at the premises of Provincial Departments of Taxation and Tax Sub-departments to receive and assist taxpayers in using electronic invoices. Frequently review and promptly deal with difficulties that arise during the preparation and starting period of use of electronic invoices in provinces. Issues that beyond the authority of Provincial Departments of Taxation shall be submitted to Provincial People’s Committees, General Department of Taxation, and Ministry of Finance for consideration.
2. Direct Provincial Departments of Information and Communications and provincial press and broadcasting agencies to intensify dissemination of information on significance and benefits of the use of electronic invoices and new regulations on electronic invoices set out in Decree No. 123/2020/ND-CP and Circular No. 78/2021/TT-BTC.
3. Director Provincial Departments of Planning and Investment to notify and disseminate information to new enterprises when issuing business registration certificates to them on their rights and obligations to use electronic invoices from the day on which such electronic invoices are compulsorily used in provinces.
4. Direct provincial regulatory authorities that have demand for use of electronic invoices such as market surveillance authorities, customs authorities, public security authorities, etc. to prepare technical conditions necessary for connecting and searching information on electronic invoices to serve their management tasks in accordance with regulations of law immediately after application of regulations on use of electronic invoices in provinces.
5. Direct public security authorities to promptly learn about new forms of fraudulent acts for obtaining illegal profits or appropriating tax amounts, and work out appropriate preventive measures.
...
...
...
Your assistance and cooperation with the Ministry of Finance are requested to promptly deal with difficulties that arise during the application of regulations on use of electronic invoices.
We really appreciate your assistance./.
MINISTER
Ho Duc Phoc
APPENDIX
LIST OF 57 PROVINCES AND CENTRAL-AFFILIATED CITIES APPLYING REGULATIONS ON ELECTRONIC INVOICES
(Enclosed with the Official Dispatch No. 1799/BTC-TCT dated February 24, 2022 of the Ministry of Finance)
No.
...
...
...
1
An Giang
2
Ba ria - Vung tau
3
Bac Giang
4
Bac Kan
5
...
...
...
6
Bac Ninh
7
Ben Tre
8
Binh Duong
9
Binh Phuoc
10
...
...
...
11
Ca Mau
12
Can Tho
13
Cao Bang
14
Da Nang
15
...
...
...
16
Dak Nong
17
Dien Bien
18
Dong Nai
19
Dong Thap
20
...
...
...
21
Ha Giang
22
Ha Nam
23
Ha Tinh
24
Hai Duong
25
...
...
...
26
Hoa Binh
27
Hung Yen
28
Khanh Hoa
29
Kien Giang
30
...
...
...
31
Lai Chau
32
Lam Dong
33
Lang Son
34
Lao Cai
35
...
...
...
36
Nam Dinh
37
Nghe An
38
Ninh Binh
39
Ninh Thuan
40
...
...
...
41
Quang Binh
42
Quang Nam
43
Quang Ngai
44
Quang Tri
45
...
...
...
46
Son La
47
Tay Ninh
48
Thai Binh
49
Thai Nguyen
50
...
...
...
51
Thua Thien Hue
52
Tien Giang
53
Tra Vinh
54
Tuyen Quang
55
...
...
...
56
Vinh Phuc
57
Yen Bai