With the increasing number of overseas enterprises, tax and invoice issues are the problems that overseas enterprises have to face, in order to understand and learn the tax management and invoice use of different countries, some countries or regions will be selected for research around the world. This paper mainly investigates Vietnam’s tax system, tax types, declaration methods, system construction, invoice specifications, and access requirements for invoice service providers.
1. Overview
At current prices, Vietnam’s GDP is expected to reach 11,511.9 trillion VND, equivalent to US$476.3 billion, in 2024. In 2024, the state’s fiscal revenue reached 2,037.5 trillion VND (approximately US$57 billion), exceeding the annual budget target by 119.8% and a significant increase of 16.2% compared to 2023. Among them, domestic tax revenue accounted for 79.5% (mainly including value-added tax, corporate income tax, and individual income tax), import and export tax accounted for 10.9% (mainly including tariffs and export processing zone taxes), crude oil revenue accounted for 2.6%, land-related income accounted for 2.1% (mainly including land use right transfer and land rent), and non-tax revenue accounted for 4.9%.
Vietnam has a total population of 103.8 million, ranking 15th in the world, with 42.5% urbanization, 23.1% aged 0-14, 68.2% aged 15-64, and 8.7% over 65 years old, accounting for a high proportion of the overall working population.
As of the end of 2024, the total number of registered enterprises was 1,072,340, an increase of 42.3% over 2020 (average annual growth rate of 9.2%)
2. Tax system
Vietnam’s main tax collection agency is the General Department of Taxation (GDT), which is under the Ministry of Finance and has 63 provincial tax offices, responsible for the collection of corporate income tax, value-added tax and personal income tax. According to Decision No. 381/QD-BTC issued on February 26, 2025, the General Department of Taxation of Vietnam has been officially dissolved on March 1, 2025 and reorganized into the Tax Department (Tax Department), which is subordinate to the Ministry of Finance and has a three-level structure: central, regional (20) and district (350).
Official website of the Vietnam Tax Authority: http://www.gdt.gov.vn
The General Administration of Customs is responsible for the collection of customs duties and consumption taxes (special consumption taxes) on imported goods.
Vietnam’s tax system includes direct taxes (such as corporate income tax, personal income tax) and indirect taxes (such as VAT, special consumption tax), which are declared and managed through digital platforms such as eTax systems. In 2024, Vietnam’s tax policies continue to be optimized to support an export-oriented economy and foreign direct investment (FDI), especially in the manufacturing and technology sectors.
3. Types of taxes
Vietnam’s taxes mainly include corporate income tax, personal income tax, value-added tax, special consumption tax and other major taxes.
1. Corporate Income Tax (CIT)
Tax rate: The standard rate is 20%.
Preferential tax rate:
- Encouraged industries (such as high-tech, education, environmental protection): 10%-17%.
- Special economic zones, remote areas: as low as 10%.
- Small businesses: 15%-17% for partial applications.
Taxable objects: The global income of enterprises in Vietnam (including foreign-funded enterprises), and foreign enterprises only pay tax on income in Vietnam.
2. Value Added Tax (VAT)
Tax rate: divided into three levels:
- Standard rate: 10% (for most goods and services).
- Tax reduction rate: 5% (basic livelihood commodities such as food, medical care, education).
- 0% tax rate: export goods and services, international transportation, etc.
Taxpayers: Enterprises with annual revenue of more than 100 million VND (about US$4,300) must register to pay.
3. Personal Income Tax (PIT)
Taxation principles:
Progressive tax rate (levied in phases by income):
- 0%: Annual income ≤ 60 million VND (about 2,580 USD).
- 5%-35%: The excess is progressed by 7 levels (threshold: monthly income of 11 million VND, about 470 USD).
Scope of taxation:
- Vietnam residents: global income (with bilateral tax treaties to deduct).
- Non-resident: Taxed at a flat rate of 20% only on income within Vietnam.
- Tax exemptions: insurance payments, inheritance gifts, partial allowances, etc.
4. Special Consumption Tax (SCT)
Nature: Selective consumption tax (similar to China’s consumption tax).
Scope of taxation:
Luxury or Restricted Consumption Products:
- Tobacco and alcohol (tax rate 65%-150%).
- Cars (tax rate 10%-150%, by displacement).
- Gasoline, playing cards, golf memberships, etc.
- Tax rate: 10%-150% (varies greatly depending on the product type).
5. Customs Duties
Scope of application: import and export goods.
Rate:
Preferential tax rates according to Vietnam’s Import and Export Tariff Rules and free trade agreements (such as CPTPP, EVFTA, RCEP).
Ordinary rates can be up to 150% and treaty rates can be as low as 0%.
6. Natural Resources Tax
Scope of taxation: mining minerals, oil, forest resources, water resources, etc.
Tax rate: Varies according to the type of resource (e.g., 5%~40% for crude oil, 10%~22% for gold mines).
7. Environmental Protection Tax
Object: Contaminating products (plastic bags, gasoline, coal, etc.).
Tax rate: Fixed rate (e.g. gasoline 1,000-4,000 VND/liter).
8. Land-related taxes
Land Use Tax: Agricultural/non-agricultural land is levied by area and government pricing.
Land lease fee: Foreign-funded enterprises need to pay for renting land (rates vary depending on the use of the lot).
Property tax: levied on non-residential properties (tax rate 0.4%~0.6%).
9. Stamp Duty (Registration Tax)
Scope of taxation: transfer of asset ownership (house, land, vehicle).
Tax rate: 0.5%~15% (such as vehicle transfer tax rate 2%~15%).
10. Non-agricultural land use tax
Scope of taxation: non-agricultural land such as cities and industrial zones.
Tax rate: levied according to land area and region (0.03%~0.15%).
4. Application method
According to the regulations of the General Department of Taxation of Vietnam, electronic declaration (eTax system) is a mandatory method, and only remote areas can apply for paper declaration:https://etax.gdt.gov.vn
1. Common Filing Process
1) Tax registration (required before the first filing)
Object:
Enterprise: within 30 days of establishment.
Individual: Annual income of > 100 million VND (about US$4,300).
Material:
Enterprise: business license, legal person ID card, bank account.
Individual: ID card, proof of income (e.g. contract, rent agreement).
Channel:
Online: eTax System (https://etax.gdt.gov.vn)
Offline: District Tax Department.
2) Detailed rules for declaring tax types
(1) Value Added Tax (VAT)
Period: Monthly declaration (before the 20th of the following month)
Form: Mẫu 01/GTGT
Operation process:
- Fill in the output tax amount (total output invoice × tax rate).
- Deduct input tax (a list of input invoices that need to be uploaded for certification)
Calculate the net tax amount: Output tax – input tax (if it is negative, it can be carried forward to the next period).
Key Attachments:
Sales Invoice Summary Table (XML format).
Import declaration form (applicable to import value-added tax).
(2) Individual Income Tax (PIT)
Type:
Employer withholding (salary): Monthly declaration (20th of the following month), form Mẫu 02/KK-TNCN.
Individual declaration (operation/rent, etc.): annual declaration (March 30 of the following year), form Mẫu 04/KK-TNCN.
Reduction and exemption operations:
- Dependent family members: 4.4 million VND per person per month, a scanned copy of the household registration book must be submitted.
- Social security/commercial insurance: Enter the payment voucher number to be automatically deducted.
(3) Corporate Income Tax (CIT)
Cycle:
Quarterly advance: before the 30th of the following month (Form Mẫu 01/TNDN).
Annual remittance: before March 30 of the following year (Form Mẫu 03/TNDN).
Data sources:
- Total profit = financial statement profit ± tax adjustments (such as excessive hospitality expenses).
- Tax payable = profit × 20% – withholding tax.
- Required materials: audit report, related party transaction statement (if applicable).
(4) Special Sales Tax (SCT)
Declaration form: Mẫu 01/TTDB (before the 20th of the following month).
Key Fields:
The output of taxable goods (such as 10,000 cigarettes and liquor).
Applicable tax rates (10% for gasoline, 65% for liquor, etc.).
Attachment: production log, quality inspection report (some products need to be provided).
(5) Tariffs (import and export)
System: Customs electronic system VNACCS/VCIS (non-eTax).
Process:
- Submit electronic customs declaration form (including HS code and certificate of origin).
- The system automatically calculates taxes (according to the FTA preferential tax rate).
- Pay online → Get release instructions.
3) Electronic payment methods
Note:
(1) The payment voucher number (CQT-ĐT) must be associated with the declaration form, otherwise it will be deemed to be unpaid tax.
(2) Zero declaration operation
Enterprises with no operating income: Log in to eTax → select the tax type → check “Zero Filing” → submit (still required).
(3) Correction declaration
Time limit: Correction can be made before tax audit (late penalty).
Steps: eTax → Historical Return → Modify → Refile.
4) Penalty standards for violations
Fines for violations
- 0.03%/day of late declaration of unpaid tax (up to 20%)
- False tax declaration + 20% fine + criminal liability
- Unregistered tax ID operating 2,000~40 million VND (about 850~1,700 USD)
- Loss of tax vouchers 2 million VND each
5) Utilities
Tariff calculator: https://customs.gov.vn (enter HS code for automatic tax calculation).
5. Invoice related specifications
Vietnam’s e-invoicing policy is a central part of its tax modernization reform, aiming to enhance tax transparency, reduce tax evasion, optimize administrative efficiency, and promote a digital economy. Since 2018, the Vietnamese government has gradually implemented electronic invoices through a series of regulations, which will be mandatory nationwide from July 1, 2022, replacing paper invoices.
Reduce value-added tax (VAT) vulnerabilities (40% of VAT in Vietnam, much higher than the OECD average of 20%) through real-time reporting and verification codes. Reduce printing, shipping, and storage costs for paper invoices, and are expected to save businesses up to 90% in invoicing costs. The new VAT law in 2025 requires foreign e-commerce companies to register and use electronic invoices to adapt to the rapidly growing e-commerce market.
1. Types and requirements of e-invoices
1) There are two main types of e-invoices in Vietnam:
A. Authenticated e-Invoices: Must be submitted to the GDT to obtain a unique Tax Authority Code before issuance.
Applicable to industries with high tax risk (such as agriculture, forestry, fisheries, industry, construction, enterprises with annual revenue of more than 3 billion VND, or trade and services with annual income of more than 10 billion VND).
Must include the seller’s digital signature, optional buyer’s signature.
B. Unauthenticated e-Invoices: Applicable to industries such as electricity, petroleum, telecommunications, transportation, e-commerce, insurance, supermarkets, etc., or enterprises that directly transact electronically with tax authorities.
No pre-validation is required, but transaction data is reported to GDT in real time.
2) Technical requirements
Format: XML format, containing invoice data and digital signature data, in accordance with Ministry of Finance standards (Circular 68/2019/TT-BTC).
Language: The invoice must be in Vietnamese, and if necessary, a foreign language can be attached (in parentheses or below, the font is smaller than Vietnamese).
Digital signature: The seller must use a digital certificate recognized by GDT (applied through VNPT-CA, FPT-CA, etc.). Electronic invoices issued by POS systems do not require digital signatures.
Storage: Electronic invoices are securely archived for 10 years, ensuring integrity and accessibility for tax audits. edicomgroup.com
Content (according to Article 123 of Decree No. 10/2020/ND-CP):
- Seller/buyer’s name, address, tax code.
- Description, quantity, unit price, tax rate, total amount.
- Release date (format: day/month/year).
- Tax authority verification code (if applicable).
3) Invoice type
It includes VAT invoices, sales invoices, accounting entries for the sale of fixed assets, sales invoices from state reserves, outbound documents for internal transportation, and outbound orders issued by the sales department. Thereinto:
- VAT Invoice: Used for businesses to declare VAT under the deduction method.
- Sales Invoice: Used by organizations or individuals to declare VAT under the direct method.
2. Implementation schedule and phased implementation
Vietnam’s e-invoice policy is rolled out nationwide in two phases:
Phase 1 (November 2021 – March 2022): Covering 6 provinces and cities: Hanoi, Ho Chi Minh City, Hai Phong, Quang Ninh, Phu Tho, Binh Dinh.
During the pilot period, about 40,000 enterprises registered and issued more than 81,000 electronic invoices.
Phase 2 (April – July 1, 2022): Expand to the remaining 57 provinces and cities to achieve nationwide mandatory implementation.
As of mid-2023, 99% of businesses and organizations have transitioned to electronic invoices, generating more than 4.5 billion electronic invoices.
Update 2025:
Prime Minister’s Directive (No. 129/CD-TTg): In June 2025, Prime Minister Pham Minh Chinh called for the adoption of electronic invoices by the remaining non-compliant enterprises, mainly retail and small and micro enterprises, emphasizing e-commerce tax supervision.
New VAT Law (from July 1, 2025): Foreign e-commerce businesses must register and use electronic invoices, VAT exemption increased to 200 million VND (about 8,000 USD).
3. Regulatory basis
Vietnam’s e-invoicing policy is based on the following regulations:
1. Tax Administration Law (Law No. 38/2019/QH14): Laid the legal basis for electronic invoices and require all taxpayers to use electronic invoices.
2. Decree No. 119/2018/ND-CP (Decree 119/2018/ND-CP, September 2018): Stipulates the framework, types and technical requirements for the implementation of electronic invoices.
It was originally planned to be enforced on November 1, 2020, but was postponed to July 1, 2022 due to the epidemic.
3. Decree No. 123/2020/ND-CP (Decree 123/2020/ND-CP, October 2020): Postpone the mandatory implementation until July 1, 2022, clarifying the content, format and handling of errors in invoices.
Enterprises established between September 2021 and June 2022 are allowed to use paper invoices until June 30, 2022.
4. Circular 78/2021/TT-BTC (September 2021): Provides implementation guidelines for the registration, issuance and verification of electronic invoices.
Specifies the applicable scenarios for invoices with and without verification codes.
5. Circular No. 32/2025/TT-BTC (July 2025): Update invoice numbers, authorization, and issuance rules to simplify the compliance process for small and micro enterprises.
Strengthen invoice compliance requirements for e-commerce platforms (e.g., Amazon, Shopify).
6. Decree No. 44/2023/ND-CP (Decree 44/2023/ND-CP, June 2023): From July 1 to December 31, 2023, VAT on some goods and services will be reduced from 10% to 8% and will need to be declared through electronic invoices to enjoy the reduction.
7. Official Letter No. 927/TCHQ-TXNK (March 6, 2024): Goods re-imported for warranty or repair are exempt from import duty, and electronic invoice records are required.
8. Prime Minister’s Directive (No. 129/CD-TTg, June 2025): Require the remaining non-compliant enterprises, mainly retail and small and micro enterprises, to adopt electronic invoices, emphasizing e-commerce tax supervision.
6. System construction
1. eTax System (eTax System)
Full name: Electronic Tax System
Website: http://etax.gdt.gov.vn
Role: Core tax management platform: Integrate taxpayer registration, filing, payment, invoice management and tax audit functions.
Electronic Filing: Supports electronic filing of corporate income tax (CIT), personal income tax (PIT), value-added tax (VAT), special consumption tax (SCT), etc., covering monthly, quarterly, and annual filings.
Real-time data monitoring: The tax office receives transaction data in real-time through eTax, reducing tax evasion (such as VAT fraud, accounting for 40% of tax revenue).
Taxpayer Services: Provides tax code registration, policy inquiry, tax refund application, and violation reporting functions.
Technical features:
- Digital certificate (issued by VNPT-CA, FPT-CA, etc., cost about VND 1-3 million/year, USD 40-120) is required to log in.
- Support data transmission in XML format, in line with the e-invoice policy (Decree No. 119/2018/ND-CP).
- Seamless integration with e-invoicing portals (hoadondientu.gdt.gov.vn).
Implementation: Tax Administration Law No. 38 of 2019 promotes the full application of eTax, which will be synchronized with the mandatory implementation of electronic invoices from July 1, 2022.
In 2025, eTax will add an e-commerce tax module to support the new VAT law (from July 1, 2025, foreign e-commerce companies will need to register).
2. 电子发票门户(Hóa Đơn Điện Tử)
Full name: Electronic Invoice Portal
Website: http://hoadondientu.gdt.gov.vn
Function: Electronic invoice management: Support the registration, issuance, verification and archiving of electronic invoices, in accordance with Decree Nos. 119/2018, 123/2020 and Circular No. 78/2021, 32/2025.
Invoice type: Invoice with verification code: Requires pre-verification by the Tax Department, suitable for high-risk industries (such as industrial enterprises with annual revenue exceeding VND 3 billion).
Invoice without verification code: Suitable for e-commerce, telecommunications, supermarkets, etc., which requires real-time data transmission.
VAT invoice: used for enterprises under the deduction method.
Sales invoice: Used for small and micro enterprises under the direct method.
Public verification: Taxpayers and consumers can check the legitimacy of invoices through the portal or the TCT Electronic Invoice app to combat counterfeit invoices.
In this system, you can issue new, substitute and adjust invoices. Adjustment invoices in Vietnam are used to correct errors (e.g. amount, tax rate) in the original invoice that has been used for tax declaration, adjust by adding or subtracting the difference, while replacement invoices are used to completely replace the erroneous original invoice that has not been used for tax declaration, invalidating the original invoice.
For incorrect invoices, taxpayers can initiate error notifications in the system (similar to China’s initiation of red letter invoice information confirmation forms), and the other party can confirm or reject them after receiving the notice.
Archiving and auditing: Invoice data is archived for 10 years, supporting tax audits.
Technical features: Use XML format, digital signature required (GDT recognized CA authority).
Real-time transmission to the tax bureau, support POS system networked invoice (such as supermarkets, catering).
2025 Circular 32 optimizes numbering rules to allow for customization (subject to approval).
Implementation: It will be mandatory nationwide from July 1, 2022, and more than 4.5 billion electronic invoices will be generated in 2023, with a compliance rate of 99%.
In June 2025, the Prime Minister’s Directive (No. 129/CD-TTg) requires retail and small and micro enterprises to complete the transition.
In July 2025, the new VAT law requires foreign e-commerce companies to register and issue electronic invoices.
Invoice entrance
Vietnam tax invoice filling interface
3. TCT Electronic Invoice (Mobile App)
全称:Thuế Cá Nhân Electronic Invoice(个人税务电子发票应用)
Platforms: iOS, Android (free download)
Function:
- Invoice Verification: Consumers and businesses can scan QR codes or enter invoice codes to verify invoice legitimacy and combat counterfeiting.
- Violation reporting: The public can report non-compliant invoices (such as retailers not issuing electronic invoices) to support tax enforcement.
- Taxpayer Inquiry: Provides tax codes, filing status, and policy updates.
Technical features: Integration with eTax and e-invoicing portals for real-time access to the GDT database. Vietnamese language is supported, English support is limited.
Implementation: Promotion will begin in 2022.
7. Invoice service access requirements
Vietnam’s electronic invoice system supports enterprises to build their own systems and also supports service providers to provide services.
1. Qualification requirements
According to Decree 123/2020/ND-CP, Decree 70/2025/ND-CP and Circular 32/2025/TT-BTC, applying to become an e-invoicing service provider requires meeting the following requirements:
Enterprise qualifications: Must be a legally registered enterprise (limited liability company, joint stock company, etc.) in Vietnam or a branch of a foreign enterprise.
Have a tax code and register through the eTax system. Foreign service providers (if there is no permanent establishment in Vietnam) are required to register and comply with VAT regulations according to Decree 70/2025/ND-CP.
Technical Capabilities: Provide GDT-compliant XML format invoice generation, transmission, and storage services (see Circular 68/2019/TT-BTC). Ensures a secure 24*7 connection to GDT, supporting multi-device access (PC, tablet, mobile phone). Provide data recovery systems to ensure the security and integrity of invoice data. Store invoice data for 10 years, in accordance with the requirements of the Accounting Law.
Financial and Legal Compliance: No record of tax violations, subject to GDT’s tax risk review. Provide financial guarantee (e.g. bank guarantee letter) or prove sufficient operating funds (minimum VND 500 million, about USD 20,000). Comply with data privacy regulations (such as the Cybersecurity Act) to keep customer data secure.
Scope of Services: Support electronic invoices with and without verification codes (VAT invoices, sales invoices, commercial invoices, etc.). API integration is available, compatible with enterprise ERP (e.g., SAP, Odoo) or POS systems. Support for e-commerce platforms (e.g. Tiki, Shopee) and cross-border transactions (required by the new VAT law in July 2025).
Access process
To access the system as a service provider, you need to apply for certification from GDT, and the process is as follows:
1) Register a Vietnamese company:
Steps: Register a limited liability company or branch in Vietnam, submit the application through the National Business Registration Portal (dangkyquamang.dkkd.gov.vn).
Provide articles of association, legal representative identity certificate, and registered capital (recommended VND 500 million or more, USD 20,000+).
Cost: Approximately VND 2-5 million (USD 80-200), depending on the legal service provider.
Time: 5-10 working days.
Note: Foreign service providers need to designate a local agent or establish a branch in Vietnam.
2) Get the tax code:
Submit Form No. 01-DK-TCT through the eTax portal (etax.gdt.gov.vn), including company name, address, business scope.
The tax office will issue the tax code within 3-5 working days.
Cost: Free.
3) Apply for service provider certification:
Submit an application: Submit a service provider certification application through the e-invoicing portal (hoadondientu.gdt.gov.vn) or contact GDT directly.
The following documents are provided:
- Business license and tax code.
- Proof of technical capabilities (e.g., API documentation, system architecture description).
- Financial guarantee letter or bank statement (proving working capital).
- Data security compliance statement (in compliance with the Cybersecurity Act).
- Service plans (supported invoice types, customer groups such as e-commerce).
Approval: GDT reviews within 5-10 working days and sends an electronic notification (Form No. 01/TB-DKDT).
If rejected, supplementary materials (such as technical specifications) must be supplemented and resubmitted according to the feedback.
Fee: Free (but subject to legal counsel’s fee, about USD 200-500).
4) Get a digital certificate:
Apply for a digital certificate for service providers through certification bodies recognized by GDT (such as VNPT-CA, FPT-CA, Viettel-CA).
Cost: VND 3-5 million/year (USD 120-200).
Time: 1-3 working days.
5) Testing and launching:
Testing: Conduct system docking tests with GDT to ensure API compatibility with XML format and real-time data transmission (refer to Circular 68/2019/TT-BTC).
Submit sample documents (XML invoice, PDF template) for GDT approval.
Launch: After passing the test, obtain GDT certification and officially provide services.
Time: The testing phase is about 1-3 months, depending on the technical complexity.
Note:The official documentation is not public, and you need to contact GDT (Address: No. 123, Lo Duc Street, Hanoi, Vietnam, Tel: (024) 39712555) or authorized service providers (such as EDICOM, Fonoa) to obtain detailed interface specifications.
List of connected invoice service providers: https://hoadondientu.gdt.gov.vn/danh-sach-tvan
This article was completed on July 11, 2025
