What is an e-invoice? Summary of latest legal documents on e-invoice

What is e-invoice?

In accordance with the Article 3, the Decree No. 119/2018/ND-CP, an invoice means an accounting document that is created by an organization or individual selling goods or providing services to record information about goods sale or service provision in accordance with the Accounting Law.

Within that, e-invoice means an invoice that is represented in electronic data form, is created by an organization or individual selling goods or providing services, shows information about these goods or services, digital signatures, and electronic signatures by using an electronic instrument, including those created by POS cash registers with network connection for transmission of electronic data to the tax agency.

Pursuant to the Article 5 of the Decree No. 119/2018, e-invoices shall be classified into the following types:

- Value-added e-invoice: Used by sellers of goods or providers of services for their value-added tax declaration by the credit method. In this case, this type of e-invoice also includes invoices created by POS cash registers with network connection for transmission of electronic data to the tax agency.

- Sales e-invoice: Used by sellers of goods or providers of services for their value-added tax declaration by the direct method. In this case, this type of e-invoice also includes invoices created by POS cash registers with network connection for transmission of electronic data to the tax agency.

- Other types of e-invoices: Electronic stamp, electronic ticket, electronic card, electronic receipt, electronic goods dispatch and transport note, or electronic documents which carry other names but contain information.

For e-invoice contents, the Article 6 of the Decree 119 prescribes that the e-invoice must include the contents as follows:

- Invoice title, code, form code and number;

- Seller’s name, address and tax identification number;

- Buyer’s name, address and tax identification number (if the buyer has a tax identification number);

- Name, unit of measurement, quantity, unit price of goods or service; amount exclusive of VAT, VAT rate, total VAT amounts calculated at specified VAT rates, total VAT amount, total sum inclusive of VAT, for value-added invoices;

- Total amount paid;

- Buyer’s and seller’s digital signature and electronic signature;

- E-invoicing time;

- The tax agency’s code, for e-invoices with the tax agency’s code;

- Charges and fees to be remitted into the state budget and other related contents (if any).

Summary of latest legal documents on e-invoice