Electronic invoices are increasingly being used widely and gradually replacing paper invoices. However, many businesses are still wondering whether to choose this form of invoice, whether it is mandatory or not, how to use it, what are the benefits compared to paper invoices… Follow this article to find the answer.
I. Legal basis
– Decree 119/2018/ND-CP takes effect from November 1, 2018.
– Circular No. 39/2014/TT-BTC guiding the implementation of regulations on invoices
– Decree 49/2016/ND-CP amending regulations on administrative sanctions for violations in the field of price, fee, charge and invoice management
II. Current legal regulations on mandatory use of electronic invoices
1. What is an electronic invoice?
According to the provisions of Point b, Clause 2, Article 4 of Decree 51/2010/ND-CP on invoices for sales and service provision: ” An electronic invoice is a collection of electronic data messages on the sale of goods and services, initiated, established, sent, received, stored and managed according to the provisions of the Law on Electronic Transactions and implementing documents “.
More specifically, an electronic invoice is a form of invoice that is created, created, sent, received, stored and managed by electronic means.
2. Regulations on requiring businesses to use electronic invoices
According to the provisions of Decree 119/2018/ND-CP – Regulations on electronic invoices when selling goods and providing services, the use of electronic invoices is carried out as follows:
- Starting from November 1, 2018, businesses are not allowed to issue paper invoices;
- For cases that have announced the issuance of paper invoices and still have invoices, continue to use them until the deadline of December 31, 2020.
- After December 31, 2020, all businesses are required to switch to using electronic invoices.
Note: For newly established small-scale enterprises, if they do not meet the information infrastructure requirements, they can proceed with the procedure to use paper invoices. However, there is currently no document specifically regulating what constitutes “not meeting” the information infrastructure, so in reality, most enterprises comply with the regulations on switching to electronic invoices.
III. Some benefits of using electronic invoices
1. Cost savings:
Due to the specific form of use, storage and transportation through the electronic system, when using electronic invoices, businesses no longer have to worry about having a carrier or express delivery service to deliver invoices to customers as before. Instead, with just a few steps, invoices can be quickly received by customers via email, text messages, etc. This saves a lot of costs for businesses.
At the same time, in the current market, there are many units providing electronic invoice packages with reasonable costs and somewhat more economical than paper invoices.
2. Higher level of security:
Because there is no need to transport between two parties like paper invoices, businesses can also avoid losing invoices. At the same time, storing and using them on a system that can only be controlled when logged in, the security level of electronic invoices is also higher than that of paper invoices.
Searching for invoices is also faster and more time-saving.