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I. Regulations on invoices:

Pursuant to Decree No. 123/2020/ND-CP dated October 19, 2020 of the Government on invoices and records:

Clause 1, Article 4 provides for rules for issuance, management and use of invoices and records:

1. When selling goods or providing services, the seller shall issue and send invoices to buyers (including goods/services used for sales promotion, advertising or as samples, goods/services gifted, donated, exchanged or used as salary payment to employees and internal use (except goods which are internally rotated in production process), and goods rented, lent or returned). Such invoices shall have adequate contents written according to the provisions in Article 10 hereof, except e-invoices which must follow the standard format prescribed by tax authorities as prescribed in Article 12 hereof”.

Article 13 provides for use of e-invoices in sale of goods and provision of services:

“… 2. Regulations on the issuance and declaration of tax liability when the tax authority issues authenticated e-invoices provided seperately:

a) Types of invoices to be issued provided separately

a.1) Authenticated e-invoices that are sales invoices are provided separately in the following cases:

– Household and individual businesses specified in Clause 4 Article 91 of the Law on Tax Administration No. 38/2019/QH14 that are not qualified to use authenticated e-invoices but need to provide invoices for their clients;

… 3. Application of e-invoices, delivery and internal transfer notes, and delivery notes for goods sent to sales agents in some cases:

… b) Export entrustment:

– When delivering the goods to the trustee, the trustor shall use the delivery and internal transfer note.

– After the customs authority confirms that the goods have been exported in reality and the trustor has confirmed the quantity and value of goods exported in reality, the trustor shall issue an electronic VAT invoice, which will be used for declaring VAT and claiming VAT refund, or issue an electronic sales invoice. The trustee shall provide the electronic VAT invoice or electronic sales invoice for the foreign buyer“.

II. Regulations on VAT:

1. For entrusted parties:

In Clause 3, Article 1, Circular 119/2014/TT-BTC stipulates:

“dd) Declaration tax incurred by authorized exporters and importers:

Any taxpayer entrusted to export, import goods is not required to declare VAT on the entrusted exports and imports (if the entrustment contract does not delegate tax obligation to the entrusted party), and shall declare VAT on the payment for entrustment.”

2. For entrusting parties:

Pursuant to the provisions of Clauses 1 and 2, Article 9 of Circular 219/2013/TT-BTC as follows:

1. 0% VAT is applied to exported goods and services; construction and installation overseas and in free trade zones; international transport; exported goods and services that are not subject to VAT, except for the cases in Clause 3 of this Article, in which 0% VAT is not applied.

Exported goods and services are those that are sold to overseas organizations and individuals and are consumed outside Vietnam, sold to the entities in free trade zones, or sold to foreign customers as prescribed by law.

a) Exported goods include:

– The goods exported to other countries, including those under entrustment contracts; […]

2. Condition for application of 0% tax:

a) The documents below are compulsory for exported goods:

– A sale contract, export processing contract, or export entrustment contract;

– Bank receipts for payment for exported goods and other documents prescribed by law;

– A customs declaration prescribed in Clause 2 Article 16 of this Circular.

If goods are delivered to a recipient outside Vietnam, the seller must provide documents proving the delivery of goods outside Vietnam such as: a contract to buy goods signed with an overseas buyer, a contract to sell goods signed with the buyer, documents proving that goods are received outside Vietnam such as commercial invoices, bills of lading, packaging notes, Certificates of Origin, etc.; bank receipt for the payment to the overseas seller by the taxpayer, bank receipt for the payment to the taxpayer by the buyer.. […]”

III. Regarding the conditions for deduction and refund of input tax:

In Article 16, Circular No. 219/2013/TTBTC: Conditions for deduction and refund of input tax on exported goods:

“VAT on exported goods and services (except for the cases in Article 17 of this Circular) shall only be deducted and refunded when the documents mentioned in Clause 2 Article 9 and Clause 1 Article 15 of this Circular are presented. In particular:

1. The contract to sell, process goods, or provide services for a foreign entity. If the exported is entrusted, the compulsory documents are the entrustment contract and the note of entrustment contract finalization or a debt comparison note between the entrusting party and the entrusted party, specifying the quantity, categories, value of exported goods, the export contract number; the date and amount of money on the bank transfer receipt for the payment between the foreign party and the entrusted party, the date and amount of money on the receipt for payment to the entrusting party by the entrusted party, number and date of the customs declaration of exported goods made by the entrusted party.”