The role of Vietnam in the global game of e-compliance / e-invoicing
Vietnam has been playing an increasingly important role in the global game of e-compliance and e-invoicing in recent years. E-invoicing is the process of creating, sending, and receiving invoices electronically, and it has become an important tool for businesses looking to increase efficiency, reduce costs, and improve compliance.
The Vietnamese government has recognized the importance of e-invoicing and has taken steps to promote its adoption. In 2018, the Ministry of Finance issued Circular 68/2019/TT-BTC, which introduced a pilot program for e-invoicing in Vietnam. The pilot program was launched in November 2020 and was initially limited to certain industries and regions.
However, the program has since been expanded, and as of July 2022, all businesses in Vietnam are required to issue e-invoices for their sales of goods and services. This requirement applies to all businesses, regardless of their size or industry, and failure to comply can result in fines and penalties.
The move towards e-invoicing has been driven by a number of factors. One of the main drivers has been the need to improve tax compliance and reduce fraud. E-invoicing provides a more secure and transparent way of conducting business transactions, making it easier for tax authorities to monitor and enforce compliance.
Another factor driving the adoption of e-invoicing in Vietnam has been the need to improve efficiency and reduce costs. E-invoicing eliminates the need for paper-based invoicing, which can be time-consuming and costly. By automating the invoicing process, businesses can save time and reduce their administrative costs.
The adoption of e-invoicing in Vietnam has also been driven by the country’s growing e-commerce sector. E-commerce is a rapidly growing industry in Vietnam, with an estimated market value of over $10 billion in 2020. E-invoicing provides an efficient and secure way for businesses to conduct transactions online, helping to support the growth of e-commerce in the country.
Overall, the role of Vietnam in the global game of e-compliance and e-invoicing is becoming increasingly important. The country’s adoption of e-invoicing is part of a broader trend toward digitalization and automation of business processes, and it is likely to have a significant impact on the way businesses operate in Vietnam and beyond. As e-invoicing continues to gain popularity around the world, Vietnam’s experience may serve as a model for other countries looking to promote e-invoicing and improve tax compliance.