Expanding issuance, management and using electronic invoices and vouchers

Electronic invoice has brought many benefits to the business and agreed by the customers. Source: Internet.

The application of electronic invoices (e-invoice with the tax code of tax authorities and electronic invoice issued by the enterprise) shows that the electronic invoice has brought many benefits for businesses and agreed by customers. It brings practical benefits in time and save costs for businesses, and reduces administrative procedures. By using electronic invoices, it helps customers to make payments conveniently. They can access the seller’s website to view and download invoices as needed, so customers do not have to store, invoices and can save money by not having to print.

For tax authorities, using electronic invoices helps the tax department build a database of invoices. The tax authorities don’t need to check invoices and prevent invoices of runaway enterprises. Furthermore, electronic invoices reduces counterfeiting and fraudulent use of invoices.

According to a report of the General Department of Taxation, basically all provinces and cities across the country have businesses using electronic invoices. They are mainly concentrated in the two major cities of Hanoi and Ho Chi Minh City and are large enterprises operating in the fields of trade and services. They have a developed information technology infrastructure, are companies such as: Vietnam Electricity Corporation (EVN), Vietnam Posts and Telecommunications Group (VNPT) Viettel Corporation, Vietnam Airlines Corporation (VNA), Saigon - Hanoi Railway Company...). The application of electronic invoices in those enterprises mentioned above is considered to bring good results, it is accepted by customers, and has a practical effect on time and cost savings for enterprises. Thereby, promoting the application of information technology in business management and book keeping operation in order to raise production efficiency, services quality and increase the competitiveness of enterprises.

However, the current provisions on the application of electronic invoices in economic transactions are not specified in the Law on Accounting and current law on tax administration. General Department of Taxation said that to comply with the law on accounting helps create a healthy business environment and to develop e-commerce. The issuance of regulations about the requirement of using electronic invoices and vouchers for paper replacement invoices are applicable.

According to Mr. Luu Duc Huy, Director of Policy Department, General Department of Taxation: "The issuance of regulations on requiring the use of electronic invoices and vouchers instead of paper invoices in the Law on Tax Administration aims to build legal basis in order to implement the application of electronic invoices in accordance with international practices, creates databases on invoices of the tax branch, contributes to the establishment of electronic tax offices for serving the establishment of e-government."

Furthermore, the General Department of Taxation proposed that, in the development of the Law on Tax Administration (Amendment), it needed to supplement regulations on the application of electronic invoices and vouchers for more detail in order to expand the scope of application of electronic invoices, narrow down the use of paper invoices. This is aimed at tax administration and cost savings for the whole society.

In addition, it is necessary to stipulate that the business establishment shall transfer the invoice data to the tax authorities in order to promote the development of an invoice database, raise the tax administration capacity, and inspect and limit tax frauds.

According to representatives of the General Department of Taxation, the socialization of providing value-added services on tax invoices with tax code will increase efficiency when applying electronic invoices with the tax code. It helps to reduce the pressure on investment of information technology system of the tax branch. Most importantly, when the use of electronic invoices is expanded, it would reduce administrative procedures for enterprises and business organizations. Specifically, it will reduce 4 procedures when applying electronic invoices (does not need to make reports on the use of invoices, reports of damage, does not make notifications in case of discontinued use). This will save a lot of time and money for the business.