1. What is an electronic invoice?

An electronic invoice is a set of electronic data messages related to the sale of goods or the provision of services, created, sent, received, stored, and managed electronically. Compared to paper invoices, electronic invoices offer many outstanding advantages such as:

• Cost savings: Reduces printing, storage, and transportation costs.
• Improved efficiency: Automates processes and shortens processing time.
• Transparency: Easy to access and verify information.

Currently, electronic invoices are created, transmitted, and stored according to a common data format standard. Invoices with tax codes are created by taxpayers and sent to the electronic invoice database in real-time; invoices without tax codes are sent by taxpayers to the electronic invoice database on the same day. As of August 12, 2024, tax authorities have successfully received and issued codes for approximately 8.803 billion electronic invoices. To date, there have been 78,696 businesses nationwide that have registered to use e-invoices generated from cash registers, with over 741.6 million invoices generated from cash registers.

2. Outstanding benefits of electronic invoices

a) For organizations and individuals selling goods or providing services

• Creates a fair and healthy business environment, facilitating business operations.
• Reduces administrative procedures related to invoices.
• Reduces costs related to sending, storing, and archiving invoices.
• Reduces the risk of losing invoices.

b) For organizations and individuals purchasing goods or services

• Easily lookup and verify electronic invoices provided by the seller.
• Reduces costs compared to using paper invoices (reduces costs of paper, ink, transportation, storage, and eliminates the need for physical storage).
• Reduces costs of complying with tax procedures.
• Overcomes the risk of loss, damage, or fire when using paper invoices.
• Provides peace of mind for buyers of goods and services.

c) For tax authorities

• Builds an invoice database; combines other tax management information to build a comprehensive database of taxpayers to meet the requirements for analyzing information to serve operations, forecasting, supporting taxpayers in complying with tax laws, and managing tax risks.
• Contributes to changing management methods based on the application of information technology, improving business processes towards automatic data processing and control, helping tax authorities use resources and costs effectively.
• Contributes to preventing invoices of absconding or missing businesses; contributes to preventing tax and invoice violations.

d) For society

• Contributes to transforming the way people are served, the way of management, and the organization of tax authorities towards automation to reform administrative procedures, facilitate, reduce costs, and increase productivity of businesses.
• Compliance with regulations on invoices and documents by organizations and individuals helps create a fair and healthy business environment among taxpaying organizations and individuals, thereby facilitating the business operations of enterprises.
• Promotes the development of e-commerce and online business in line with global development trends.
• The deployment of electronic invoices is one of the important contents to promote digital transformation in enterprises, digital transformation for financial agencies as well as in other government agencies.
• Brings many general benefits to society such as: saving costs, resources, and protecting the environment.