Vietnam's e-invoicing landscape is entering a new phase of regulatory enforcement in 2026, with stricter penalties, expanded compliance requirements, and enhanced integration between businesses and tax authorities. Companies operating in Vietnam must understand these changes to avoid significant fines and operational disruptions.
Current Regulatory Framework
Vietnam mandated electronic invoicing for all businesses starting July 1, 2022. Under this framework, all companies must issue electronic invoices to buyers, digitally report transactions to the General Department of Taxation (GDT), and register on the GDT website before using electronic invoices. This requirement covers all transaction types including B2B, B2G, B2C, and export transactions.
The technical foundation requires XML as the primary data format, containing e-invoice data and digital signature data. All e-invoices, except those generated via POS systems, must be digitally signed by the issuer using certificates from GDT-approved providers. Businesses must archive all electronic invoices for a minimum of 10 years.
Key 2026 Regulatory Updates
The Vietnamese Government published Decree No. 70/2025/ND-CP on March 20, 2025, introducing substantial reforms to electronic invoicing regulations. This decree, effective from June 1, 2025, amends Decree No. 123/2020/ND-CP and serves as the foundation for 2026 enforcement. The Ministry of Finance followed with Circular No. 32/2025/TT-BTC, replacing Circular No. 78/2021/TT-BTC, which provides detailed implementation guidelines.
Starting January 16, 2026, Decree 310/2025/ND-CP restructures the administrative penalty framework for invoice violations. Penalties are now determined based on both the nature of the transaction and the number of violating invoices, with separate thresholds applying to revenue-generating sales versus non-commercial or internal-use transactions. Multiple violations on the same day are subject to a single penalty at the highest applicable level.
Who Is Affected
The expanded regulations impact several categories of businesses:
Retail and Service Sectors: Companies in retail, hospitality, catering, food services, passenger transport, arts, entertainment, and personal services with annual revenue exceeding VND 1 billion (approximately USD 38,400) must now use POS cash registers connected to the GDT for real-time data transmission.
Foreign Digital Businesses: Foreign suppliers without permanent establishments in Vietnam who engage in e-commerce, digital platform-based businesses, online advertising, cloud services, or app-based services can now voluntarily register to issue electronic VAT invoices through the GDT's web portal.
All Existing Businesses: Every company already subject to e-invoicing requirements faces heightened compliance scrutiny and potential penalties under the updated penalty framework.
Technical Requirements
The technical specifications for e-invoicing compliance remain rigorous. E-invoices must follow the prescribed XML format with detailed content and digital signatures. Invoices are either cleared in real-time with a tax authority code or must be reported to tax authorities on the same day of issuance. There is no grace period allowing batched late reporting, and compliance is monitored continuously.
For POS-generated invoices, the mandatory content includes: seller name, address, and tax identification number; buyer details if requested; goods or services description with unit price, quantity, and total; and a tax authority identification code or QR code enabling invoice verification. Sellers must provide electronic invoices to buyers via message, email, or downloadable link.
Digital signatures and submissions to the GDT must occur no later than the working day following invoice issuance. POS-generated e-invoices are exempt from digital signature requirements, though the data must still transmit to tax authorities in real-time.
Integration with Tax Authorities
Vietnam's e-invoicing system requires direct integration with the General Department of Taxation. Businesses must register on the GDT website and receive approval before using electronic invoices. The system mandates real-time or same-day reporting with no option to batch invoices for month-end submission unless specifically authorized by law for particular industries.
For businesses in mandatory POS sectors, cash registers must electronically connect to the GDT's system, transmitting invoice data in real-time. This direct connection enables tax authorities to monitor transactions continuously and identify compliance issues immediately.
Compliance Deadlines and Penalties
The 2026 penalty framework under Decree 310/2025/ND-CP takes effect January 16, 2026. Penalties for late or incorrect invoicing have become clearer and more severe. Fines range from a few million VND for minor breaches to tens of millions for serious violations. The decree expands prohibited practices to include failure to transmit invoice data electronically to tax authorities and forgery of invoices or related documents.
Notable changes to the VAT framework also affect compliance. A new VAT Law 48/2024/QH15 replaced the previous law starting July 1, 2025. Additionally, the National Assembly approved a temporary VAT rate reduction from 10% to 8% for eligible goods and services, extended until December 31, 2026.
How to Prepare
Businesses should take immediate steps to ensure compliance with Vietnam's 2026 e-invoicing requirements:
1. Audit Current Systems: Review existing e-invoicing infrastructure against Decree 70/2025 requirements. Identify gaps in XML formatting, digital signature implementation, and GDT integration.
2. Implement POS Integration: If operating in mandatory sectors with revenue above VND 1 billion, ensure cash register systems can connect to GDT for real-time data transmission.
3. Validate Digital Signatures: Confirm that digital signature certificates are from GDT-approved providers and properly integrated into invoicing workflows.
4. Update Archiving Systems: Verify that all electronic invoices are stored in compliant formats for the mandatory 10-year retention period.
5. Train Staff: Ensure accounting and operations teams understand the updated penalty framework and same-day reporting requirements.
6. Engage Professional Advisors: Consider consulting with tax professionals familiar with Vietnamese regulations to navigate complex compliance scenarios.
Looking Ahead
Vietnam's e-invoicing system represents one of Southeast Asia's most comprehensive digital tax compliance frameworks. The 2026 updates demonstrate the government's commitment to strengthening fiscal control and ensuring transaction traceability. Foreign investors and domestic businesses alike must prioritize compliance to avoid penalties and maintain operational continuity in this dynamic regulatory environment.
As Vietnam continues to refine its e-invoicing regulations, businesses should monitor announcements from the General Department of Taxation and Ministry of Finance for any additional guidance or clarifications affecting their operations.
