Comparing 3 Types of Electronic Invoices: With Code, Without Code, and CQT Code - Which Type to Choose?

Since electronic invoices have become mandatory according to the General Department of Taxation's regulations, many shop owners, retailers, and business households are still wondering which type of electronic invoice to choose to suit their scale and business characteristics. The three most popular types of electronic invoices currently are invoices with tax authority codes, invoices without tax authority codes, and CQT-coded invoices (also known as pre-printed invoices) - each with its own advantages and limitations.

Choosing the right type of invoice not only helps businesses comply with the law but also optimizes operating costs and sales processes. This article will analyze the three types of electronic invoices in detail, compare their pros and cons, and help you make the most suitable decision.

1. Electronic Invoice with CQT Code

Concept

An electronic invoice with a tax authority code is an invoice that is issued a verification code by the General Department of Taxation before being sent to the customer. This code consists of a unique string of characters generated by the tax authority and attached to the invoice to confirm its validity.

Applicable Subjects

According to Decree 123/2020/ND-CP, businesses with high tax risk are required to use invoices with codes:

• Newly established businesses operating for less than 12 months
• Businesses that are temporarily suspended, have tax arrears, or are at risk of tax issues
• Business households and individuals with revenue of VND 1 billion or more per year
• Businesses operating in sensitive sectors (scrap, petroleum, etc.)

Issuance Process

1. Businesses create invoices on accounting software or management systems
2. Submit invoice data to the General Department of Taxation's portal
3. The tax authority verifies and issues a verification code within 1-2 seconds
4. Businesses receive the invoice with the code and send it to customers

Advantages

Transparency and strict control: The tax authority has real-time information on invoices, minimizing tax fraud.

Low cost: Businesses do not have to pay fees to invoice service providers; they only need to register and use it for free through the General Department of Taxation's portal.

High legal validity: Invoices are directly confirmed by the tax authority, ensuring absolute legal value.

Disadvantages

Dependency on the tax system: When the General Department of Taxation's system encounters issues or maintenance, businesses cannot issue invoices.

Slower speed: Compared to invoices without codes, waiting for the tax authority to issue codes can cause delays in some cases.

Limited flexibility: Not suitable for businesses that need to issue a large number of invoices in a short period.

2. Electronic Invoice Without CQT Code

Concept

An electronic invoice without a code is an invoice that businesses self-issue through an electronic invoice service provider (a provider approved by the General Department of Taxation), without needing to obtain a verification code before sending it to the customer.

Applicable Subjects

Businesses can use invoices without codes if they meet the following conditions:

• Have been operating for 12 months or more
• Have no tax arrears or tax violations
• Are not considered high tax risk by the tax authority
• Use services from a legitimate electronic invoice provider

Issuance Process

1. Businesses sign a contract with an electronic invoice service provider
2. Create invoices on the software and send them directly to customers
3. Periodically (daily/monthly), send invoice data to the tax authority through the service provider

Advantages

Fast speed: Issue invoices instantly, without waiting for confirmation from the tax authority.

Not dependent on the tax system: Businesses can still issue invoices even if the General Department of Taxation's system encounters issues.

High flexibility: Suitable for businesses with a large volume of transactions that need to issue invoices in bulk.

Easy integration: Service providers often offer APIs and integration features with sales management software.

Disadvantages

Service costs: Businesses have to pay fees to the electronic invoice service provider, ranging from a few million to tens of millions of VND per year depending on the service package.

Application conditions: Not all businesses are eligible to use them, especially new businesses or those with tax risks.

Legal responsibility: Businesses are solely responsible for the accuracy and legality of the issued invoices.

3. Electronic Invoice with CQT Code (Pre-printed)

Concept

An invoice with a tax authority code, also known as a pre-printed invoice upon request, is an invoice that is pre-printed with a code issued by the tax authority. This is a transitional form from paper invoices to electronic invoices, usually applied to units that are not yet eligible or ready to fully transition to electronic invoices.

Applicable Subjects

• Small businesses and business households with revenue below VND 1 billion per year
• Units operating in remote areas with limited technological infrastructure
• Special cases as stipulated by the tax authority

Usage Process

1. Businesses register with the tax authority for the number of invoices needed
2. The tax authority issues invoice codes
3. Businesses have invoices printed at licensed printing establishments
4. Use paper invoices with codes for transactions with customers

Advantages

Suitable for small businesses: Does not require complex technological infrastructure.

Simple process: Easy to use, no internet connection required when issuing invoices.

Low initial cost: No need to invest in software or electronic invoice services.

Disadvantages

Outdated: Not in line with the current digitalization trend, gradually being phased out.

Difficult management: Prone to loss, difficult to search and store compared to electronic invoices.

Inflexible: If an error occurs, the paper invoice must be canceled and reported to the tax authority.

Time limitation: According to the roadmap, this type of invoice will be completely replaced by electronic invoices.

Comparison Table of 3 Invoice Types

Criteria	With CQT Code	Without CQT Code	CQT Code (Pre-printed)
Issuance Speed	Slow (1-2s)	Fast (instant)	Medium
Cost	Free	3-15 million/year	Printing costs
Internet Dependency	Yes	Yes	No
Management	Easy	Easy	Difficult
Flexibility	Low	High	Very low
Trend	Popular	Popular	Being phased out

Which Type of Invoice to Choose?

Choose an invoice WITH CODE if you:

• Are a newly established business or a business household with revenue over 1 billion VND/year
• Want to save on service costs
• Do not have a very large volume of transactions in a short period
• Prioritize transparency and absolute compliance

Choose an invoice WITHOUT CODE if you:

• Are a business that has been operating stably for over 12 months
• Have a large volume of orders, need to issue invoices quickly
• Sell on multiple e-commerce platforms, need automatic integration
• Are willing to pay for services in exchange for speed and flexibility

Choose an invoice WITH CQT CODE (Pre-printed) if you:

• Are a small business household with revenue under 1 billion VND/year
• Operate in areas with limited internet access
• Need a temporary solution during the digital transformation period

Conclusion

Choosing the right type of electronic invoice depends on the business's scale, transaction volume, and development strategy. Most small and medium-sized businesses currently use invoices with codes due to their low cost and full compliance with legal requirements. Meanwhile, large enterprises with high transaction volumes often choose invoices without codes to optimize their operational processes.

To help shop owners and business households issue electronic invoices easily and quickly, GTG CRM has integrated the feature to issue electronic invoices directly from orders. You can connect with leading invoice providers, automatically generate invoices from order information, and send invoices to customers with just a few simple steps. This saves time, reduces errors, and ensures compliance with legal regulations.