Many obstacles remain in compulsory e-invoicing

Workshop on “E-invoices under Decree 123/2020 and Circular 78/2021 – Application notes for businesses” 

Speaking at the workshop on “E-invoices under Decree 123/2020 and Circular 78/2021 – Application notes for businesses” recently organized by the Vietnam Chamber of Commerce and Industry (VCCI) and Mobifone Corporation, Mr. Hoang Quang Phong, Vice President of VCCI, said, IT application to tax administration, especially in the electronic invoice system, has created new breakthroughs in digital transformation.

Regarding e-invoicing, the Ministry of Finance issued Circular 78/2021/TT-BTC to guide the enforcement of the Law on Tax Administration and Decree 123/2020/ND-CP. Accordingly, the e-invoice application roadmap will be divided into two phases. The first phase, from November 2021 to March 2022, was launched in six provinces and cities: Hanoi, Ho Chi Minh City, Quang Ninh, Hai Phong, Phu Tho and Binh Dinh. The second phase, from April 2022 to July 2022, was deployed in the remaining 57 provinces and cities.

However, after the e-invoice pilot period as per Decree 123/2020/ND-CP and Circular 78/2021/TT-BTC, many emerging problems will need to be addressed for taxpayers, especially for business households and individuals who will use e-invoices for the first time.

Mr. Nguyen Van Phung, Director of the Large Corporate Tax Bureau under the General Department of Taxation (Ministry of Finance), said, e-invoicing is proven to benefit both sellers and buyers as well as tax authorities. For sellers, e-invoicing saves a large amount of paper. Storage is also much simpler and transactions are performed immediately. Similarly, the buyers have the same benefits.

In particular, using electronic transactions, sellers, buyers and authorities can check and understand transactions, cross-check each other, and feel free from worries of fleeing taxpayers, thus ensuring an honest and healthy business market.

However, currently, most companies are small and medium in scale, he said. This is also a big challenge in e-invoice applications. Besides, many businesses lie in mountainous localities and e-invoice services expose some limit ations and inadequacies.

For the nationwide application of e-invoices from July 1, 2022, the tax industry has taken a lot of cautious, firm steps and provided maximum support for people and businesses, said Phung. In addition to dividing into specific phases, the sector has gradually required network infrastructure service providers and solution and invoice providers to expand human resources and solutions to best support enterprises. At the same time, it has guided people and businesses at tax offices.

To successfully apply e-invoices, the tax industry still needs close cooperation of network infrastructure operators and e-invoice service providers, as well as coordination and support of authorities to inform people and businesses of obligatory application, Phung noted.