Vietnam kicks start e-invoice system nationwide

The Ministry of Finance (MoF) today [April 21] held a ceremony launching the national e-invoice system.

Overview of the launch. Photos: VGP

At the ceremony, Prime Minister Pham Minh Chinh said the launch of the e-invoice system is a major step toward the digitalization of the finance system, from which taxpayers would be the main beneficiaries.

“This shows the strong commitment of the Government in pushing for digitalization towards the formation of digital government, economy, and society,” Chinh said.

With tax management serving as a key part of national finance, the digital transformation in this field would bring huge benefits to not only the Government but also to people and businesses.

“IT application and digitalization in tax management would enhance transparency and prevent corruption throughout the process,” Chinh added.

The prime minister stressed the significance of applying e-invoice, as the process would fundamentally transform the operation mechanism of the tax authorities, enterprises, and business households towards greater modernization, transparency, and in line with international practices.

During this process, the Government would continue to develop national databases on citizens, businesses, social insurance, and cadastral management, which are part of a digital ecosystem and help improve efficiency in state governance, he added.

Prime Minister Pham Minh Chinh at the ceremony.

Chinh called for the tax authorities to continue improving the legal framework for transparency, simplification, and friendliness of e-invoicing.

“By the end of 2022, 100% of administrative procedures under the tax administration should be conducted online and incorporated into the national public services portal,” Chinh added.

In 2021, total budget revenue stood at VND1,345 trillion ($58.5 billion) amid severe consequences of the pandemic, exceeding the target by VND229 trillion ($9.97 billion). During the first three months of 2022, the figure rose by 10.8% year-on-year to nearly VND410 trillion ($17.8 billion), or 35% of the year’s estimate.

Under the Law on Tax Administration and the national digital transformation program until 2030, the MoF since November 21, 2021, has carried out the first phase of the e-invoice program in six provinces/cities of Hanoi, Ho Chi Minh City, Haiphong, Phu Tho, Quang Ninh, and Ninh Binh, home to 60% of national enterprises and 70% of the e-invoices.

The plan is to ensure the mass adoption of e-invoices in all 63 provinces/cities before July 1, 2022.

As of March 31, 100% of businesses and organizations in six provinces/cities of the first phase have shifted to e-invoices.

According to the General Department of Taxation, the e-invoice system is now able to process 1.7 million transactions per minute, which means a request by a taxpayer is immediately handled after being filed.