Decree 123/2020/ND-CP, which regulates invoices and supporting documents, is the most important legal document related to electronic invoices (e-invoices) in Vietnam. If you are in business, whether a company or a household business, you need to understand this decree thoroughly .
What is Decree 123?
Decree 123/2020/ND-CP (issued on October 19, 2020, effective from July 1, 2022) stipulates:
- All businesses, economic organizations, household businesses, and individual business owners must switch to using electronic invoices.
- Completely replace paper invoices.
- Electronic invoices must have a tax authority code (for most entities).
Who Needs to Use Electronic Invoices?
| Object | Obligatory? | Since when? |
|---|---|---|
| Business (Limited Liability Company, Joint Stock Company, Private Enterprise) | Obligatory | Effective from July 1, 2022 |
| Household businesses (revenue > 100 million VND/year) | Obligatory | According to the local roadmap (2024-2026) |
| Individual business | If revenue > 100 million/year | According to the schedule |
| Non-business organizations | If there is sales/service activity | Effective from July 1, 2022 |
Classification of Electronic Invoices
| Type | Describe | Object |
|---|---|---|
| Electronic invoices have tax authority codes. | The invoice has a verification code from the tax authority. | Household businesses, small businesses, newly established businesses |
| Electronic invoices without tax authority codes. | Invoices do not require a tax authority code. | Businesses that meet the criteria (high revenue, good tax compliance) |
Required Content on Electronic Invoices
According to Article 10 of Decree 123, electronic contracts must have:
| No. | Content | Obligatory |
|---|---|---|
| 1 | Invoice name, invoice symbol, sample symbol | ✅ |
| 2 | Seller's name, address, and tax identification number. | ✅ |
| 3 | Name, address, and tax identification number of the buyer (if any) | ✅ (DN) / Depends (on the individual) |
| 4 | Name of goods or services | ✅ |
| 5 | Unit of measurement, quantity, unit price | ✅ |
| 6 | Amount, tax rate, tax amount, total payment | ✅ |
| 7 | Seller's digital signature | ✅ |
| 8 | Tax authority code (if the electronic invoice has a code) | ✅ |
| 9 | Invoice date | ✅ |
Electronic Invoice Issuance Process
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Step 1: Register for the use of electronic invoices with the Tax Department.
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Step 2: Choose an e-invoicing software provider (or integrated software).
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Step 3: Set up the invoice template and business information.
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Step 4: When selling goods → Create electronic invoice → Digitally sign → Send to tax authority (if a code is available)
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Step 5: Send the electronic invoice to the buyer (email / SMS / Zalo)
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Step 6: Store the electronic invoice (for a minimum of 10 years)
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Handling Errors on Electronic Invoices
| Type of error | How to handle it |
|---|---|
| Incorrect buyer's name and address (but not the tax identification number). | Notify the tax authorities; no replacement invoice is required. |
| Incorrect Tax Identification Number (TIN), incorrect amount, incorrect tax rate. | Issue an adjustment invoice or a replacement invoice. |
| The invoice has been sent to the tax authority but has not yet been delivered to the buyer. | Cancel invoice + notify tax authorities. |
Penalties for Violations
According to Decree 125/2020/ND-CP on administrative penalties in the field of taxation:
| Violation | Penalty amount |
|---|---|
| No invoices are issued when selling goods. | 10-20 million VND |
| Issuing invoices with incorrect information. | 4-8 million VND |
| Failure to convert to electronic invoices as required. | 2-5 million VND |
| Lost the receipt | 4-8 million VND |
GTG CRM - A platform that helps household businesses easily comply with Decree 123.
GTG CRM integrates an electronic invoicing system, helping you comply with Decree 123 automatically:
Why choose GTG CRM instead of separate e-invoicing software?
| Custom e-invoice software (MISA, EasyInvoice) | GTG CRM | |
|---|---|---|
| Issue electronic invoices | ✅ | ✅ |
| Connect orders | ❌ Manual input | ✅ Automatic from order |
| Connecting to e-commerce platforms | ❌ | ✅ Shopee, Lazada, TikTok |
| CRM customer management | ❌ | ✅ |
| Warehouse Management | ❌ (Other tool needed) | ✅ |
| Marketing (email, social) | ❌ | ✅ |
| Number of software programs needed | 3-4 software programs | 1 software |
Automated Workflow
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Orders from Shopee/Website → Completed
Down (automatic)
Create electronic invoice → Digitally sign → Send to tax authority
Down (automatic)
Send electronic invoices to customers via email.
Down (automatic)
Record the revenue in the report.
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No manual input required - everything is automated, from orders to invoices.
Start Complying Now
- Sign up for GTG CRM → 36,888 free credits
- Set up business information + invoice template
- Connect to an e-commerce platform (if available).
- Start generating electronic invoices automatically.
Conclude
Decree 123 has made electronic invoicing a mandatory requirement for most businesses and household businesses in Vietnam. Understanding the regulations correctly and using appropriate software will help businesses avoid errors, reduce the risk of penalties, and manage revenue more transparently. With GTG CRM, the process from order creation to invoice issuance and data storage can be managed on a single platform, helping businesses comply with regulations simply and effectively.
Comply with Decree 123 now - Register for free.
