Starting June 1, 2025, the Vietnamese government will implement Decree No. 70/2025/NĐ-CP, which amends and supplements existing regulations on invoices and documents. This decree represents a significant shift in tax management and the use of electronic invoices, expanding their application and enhancing the digitalization of tax management.
The new regulations require business households (HKD) engaged in direct sales and service provision to consumers—such as commercial centers, supermarkets, retailers, food and beverage services, hotels, passenger transport services, and entertainment venues—to register for electronic invoices generated from cash registers. This requirement is contingent upon meeting one of three criteria: an annual revenue exceeding 1 billion VND, the use of cash registers, or a scale of revenue and labor that meets the highest standards for micro-enterprises as defined by law.
According to the government, the transition to electronic invoices is aimed at minimizing risks and improving oversight of invoices, particularly those generated from cash registers, which have become increasingly prevalent in retail and service sectors. The decree is part of a broader effort to modernize tax management and enhance compliance.
As per the decree, business households must ensure they are compliant by reviewing their current invoicing practices and converting to electronic invoices generated from cash registers by May 30, 2025. Failure to comply will be treated as a violation of invoice usage regulations, and the tax authority will coordinate with relevant agencies to enforce penalties.
For business households that are already registered to use electronic invoices but have not established an electronic connection with the tax authorities, they are also required to comply with the new regulations. This includes ensuring that they fully utilize electronic invoices generated from cash registers, as mandated.
To facilitate this transition, the government has made it clear that business households only need an internet connection and a device such as a computer, smartphone, or tablet to register for electronic invoices. The registration process will follow a specific form, which has been updated in accordance with the new decree.
Taxpayers who do not meet the technological requirements for electronic invoicing will receive support from the tax authority, which will provide guidance and resources to help them transition smoothly. The Chi cục Thuế khu vực I (Sub-Department of Taxation of Region I) has emphasized the importance of meeting the deadline to avoid penalties.
"If a business household has been supported and notified by the tax authority about the conversion to electronic invoices from cash registers but fails to convert, it will be considered a violation of invoice usage regulations," the Chi cục Thuế khu vực I stated. This underscores the seriousness of compliance with the new regulations.
The new decree is part of a series of reforms aimed at enhancing the efficiency of Vietnam's tax collection system and facilitating a more transparent business environment. The government is optimistic that these changes will lead to improved compliance rates and a reduction in tax evasion.
Business households are encouraged to act promptly and connect with their electronic invoice software providers as soon as possible to ensure they are ready for the transition. The deadline of May 30, 2025, is critical for ensuring that all invoicing practices are compliant with the new regulations.
In summary, Decree No. 70/2025/NĐ-CP marks a pivotal moment in Vietnam's tax management landscape, pushing for modernization and increased compliance through the widespread adoption of electronic invoicing. As the deadline approaches, business households must take proactive steps to meet the new requirements and avoid potential penalties.
