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?

Classification of Electronic Invoices

Required Content on Electronic Invoices

According to Article 10 of Decree 123, electronic contracts must have:

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

Penalties for Violations

According to Decree 125/2020/ND-CP on administrative penalties in the field of taxation:

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?

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

1. Sign up for GTG CRM → 66,888 free credits
2. Set up business information + invoice template
3. Connect to an e-commerce platform (if available).
4. 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.

References

• Decree 123/2020/ND-CP - Legal Library
• Circular 78/2021/TT-BTC - Guiding Decree 123
• Decree 125/2020/ND-CP - Tax Penalties