E-commerce is not just a trend but has become an integral part of the modern economy. With its rapid growth, enhancing transparency, accuracy, and efficiency in business operations is something every e-commerce business must focus on. Amid the technological advancements and new regulations from tax authorities, electronic invoicing has become indispensable for individuals and businesses operating in the e-commerce space.
Tax Authorities' Regulations on E-Invoices for E-Commerce
The Vietnamese tax authorities have issued detailed regulations on the use of electronic invoices, particularly for businesses operating in the e-commerce sector, to ensure transparency, accuracy, and modernization of the tax system. Below are the key regulations that e-commerce businesses must comply with when implementing electronic invoicing:
1. Decree 119/2018/ND-CP on Electronic Invoices
Decree 119/2018/ND-CP, issued on September 12, 2018, provides detailed regulations on the use of electronic invoices for the sale of goods and provision of services. According to this decree, e-commerce businesses are required to use electronic invoices in place of paper invoices, and this must be applied to all online sales transactions.
- Electronic invoices are created, sent, received, and stored electronically without the need for printing on paper.
- Businesses must register to use electronic invoices with the tax authorities through the electronic portal, and the tax authorities will issue invoice codes for each invoice generated.
2. Circular 78/2021/TT-BTC
Circular 78/2021/TT-BTC, issued on September 17, 2021, provides detailed regulations on the application of electronic invoices and took effect from July 1, 2022. This is an important guideline for implementing electronic invoices in accordance with Decree 123/2020/ND-CP.
- Implementation deadline: From July 1, 2022, all businesses, economic organizations, and individual business households, including e-commerce businesses, are required to use electronic invoices with tax authority codes.
- Types of invoices: Electronic invoices with tax authority codes and electronic invoices without tax authority codes. However, for most e-commerce businesses, it is necessary to use electronic invoices with codes to ensure legal compliance and data security.
- Invoice submission method: Businesses must send electronic invoices to the tax authorities before sending them to customers. The invoice will be authenticated and assigned a code by the tax authorities before being used.
3. Decree 123/2020/ND-CP on the Management of Invoices and Documents
Decree 123/2020/ND-CP, effective from July 1, 2022, replaces previous regulations on invoices and documents, and specifically provides clearer guidelines on the use of electronic invoices.
- Penalties for violations: The decree outlines specific penalties for businesses that do not comply with electronic invoice regulations, such as failing to use electronic invoices, delaying registration, or making errors during the invoicing process.
- Elimination of paper invoices: Businesses, including those in e-commerce, are no longer permitted to use paper invoices after the mandatory deadline for electronic invoices. This aims to eliminate risks related to tax fraud and ensure transparency.
See more: [Latest] Tax Declaration and the Newest Updates on E-Commerce Taxation for Businesses
Benefits of Using and Issuing Electronic Invoices for Businesses
From July 1, 2022, all business units are required to apply electronic invoices. As of now, more than 850,000 organizations and units across the country have implemented electronic invoices and have received very practical benefits.
Save 80% of time and costs compared to paper invoices
Using traditional paper invoices requires businesses to invest a lot of costs, from printing and transportation to storing invoices. According to a survey by the General Department of Taxation, the cost for a self-printed invoice can be up to 2,500 VND, while ordering printed invoices also costs about 2,000 VND per sheet.
In contrast, electronic invoices (e-invoices) are priced from only 300 VND per sheet and incur no additional costs for transportation or storage. This helps businesses save up to 80% of costs compared to using paper invoices.
Additionally, the time for invoice delivery has also been significantly reduced—from several days to just a few minutes—thanks to the fully automated process on computers. With just a few simple steps, customers can receive invoices instantly, anywhere as long as there is an internet connection. This not only helps businesses minimize costs but also enhances efficiency and convenience in business processes.
Minimize tax administrative procedures
Using electronic invoices (e-invoices) helps businesses significantly reduce tax administrative procedures. Instead of having to print, sign, stamp, and send paper invoices to customers and store them as required, the entire process with electronic invoices is conducted online, from issuing invoices, sending them to customers, to storing them in the system.
Businesses also no longer need to report their invoice usage quarterly as before, since invoice data is automatically connected to the tax authority. This not only speeds up tax declaration but also minimizes errors, making tax management more transparent and accurate, while also cutting down a large volume of paperwork related to administrative procedures.
Simplify the processes related to invoices
Using electronic invoices simplifies the entire process related to invoices. Instead of having to perform a series of manual steps such as printing, signing, stamping, mailing, and storing documents, electronic invoices allow businesses to automate all these steps.
- Creating and issuing invoices: With just a few clicks, businesses can create and send invoices instantly to customers via email or an electronic system.
- Storage and management: Invoices are stored electronically, making them easy to retrieve when needed, without the need for storage space or the costs associated with paper invoices.
- Integration with tax data: The electronic invoicing system automatically links and sends data to the tax authority, relieving businesses from the manual reporting and declaration tasks of the past.
As a result, the entire process from creating, issuing, to storing and tax declaration becomes quick and streamlined, helping businesses save time, costs, and significantly reduce errors.
Safe – Secure – Counterfeit-proof invoices
Unlike paper invoices, electronic invoices are nearly impossible to counterfeit and minimize common errors to a great extent. Mistakes such as incorrect buyer names, addresses, tax identification numbers, or unit prices—errors that are easy to make when handwritten on paper invoices—are almost completely eliminated thanks to the automation features and stringent verification system of electronic invoices. This not only ensures absolute accuracy but also helps businesses save time and avoid the hassles associated with correcting invoices.
Optimize e-invoicing with UpBase SMEs software
Synchronize order data from multiple platforms into a single interface
UpBase SMEs software helps synchronize order data from multiple e-commerce platforms into a single interface, making it easier for businesses to manage and save time.
UpBase SMEs automatically collects and aggregates data from various sources, including e-commerce platforms, warehouse management systems, and other software. This eliminates the need for accountants to spend time on manual data entry or searching for data across multiple locations.
Automatically reconcile costs for each order
UpBase SMEs software offers the feature of automatically reconciling costs for each order with data from e-commerce platforms, helping businesses save time and improve accuracy in financial management.
The automatic reconciliation feature eliminates manual data entry errors, ensuring that cost information for each order matches accurately with the data from the platform. This enhances the accuracy and reliability of financial reports.
With automatic reconciliation, accountants can quickly verify the costs incurred from each order, allowing them to make timely decisions regarding pricing, shipping costs, and other related fees.
Quickly and accurately issue e-invoices
UpBase SMEs allows integration with various e-commerce platforms and management systems through API. It links and issues invoices directly on the 30s Invoice software, exporting files in the standard data format compatible with other accounting software, enabling businesses to issue invoices quickly and accurately.
Monitor and analyze the financial reports of the business
In addition to features related to issuing e-invoices, UpBase SMEs also provides continuously updated financial reports, helping businesses monitor their financial situation in real-time and respond quickly to market fluctuations.
- The detailed financial data analysis enables businesses to make more informed strategic decisions, from investment and expansion to cost-cutting measures.
- The software allows for strict monitoring and control of budgets, helping businesses maintain financial stability and avoid overspending.
With UpBase SMEs, accountants and related departments not only save valuable time but also optimize their workflows, contributing to greater efficiency in the business operations of the company.
Conclusion
The issuance of electronic invoices is not only a legal requirement but also brings numerous practical benefits for e-commerce businesses. From saving time and costs to minimizing errors, enhancing customer experience, and optimizing financial management processes, electronic invoices have become an essential part of modern business operations. With the advancement of technology and increasing competition in the industry, transitioning to electronic invoices not only helps businesses comply with regulations but also represents a strategic move to improve efficiency and achieve sustainable growth.
