New rules on e-invoices take effect on June 1, 2025 in Vietnam

The Ministry of Finance of Vietnam has issued Circular 32/2025/TT-BTC to guide the implementation of Decree 70/2025/ND-CP, which amends Decree 123/2020/ND-CP on electronic invoices (e-invoice). Key changes take effect from June 1, 2025.

Business households and individuals using lump-sum tax methods who have registered e-invoices from cash registers before 1 June 2025 may continue using them, as long as they remain registered with the tax authority.

Organisations deducting personal income tax must switch to e-documents aligned with the new decree. If errors are found in previously issued deduction documents, new e-documents must be issued as replacements.

Firms providing e-invoice services under pre-existing contracts with the General Department of Taxation may continue operations under those agreements.

Businesses selling directly to consumers (e.g., supermarkets, restaurants, hotels, transport services) that have already registered for electronic invoices may choose to continue or switch to e-invoices generated from cash registers.

If invoices issued under older decrees (51/2010/ND-CP or 04/2014/ND-CP) are found to be incorrect, sellers and buyers must document the errors and issue a new electronic invoice.

Circular 32 also covers specific cases such as high-volume or recurring transactions—including services like industrial catering, credit information, securities, and taxi transport—requiring coordination between sellers and buyers to reconcile data before invoicing.

For financial leasing, organisations must issue VAT-compliant invoices that reflect matching VAT amounts from input invoices or import tax documents. If leased assets are not VAT-subject, the invoice must not show VAT.

These updates aim to standardise e-invoice practices across sectors while allowing flexibility during the transition.