Circular No. 32/2025/TT-BTC dated May 31, 2025, providing guidance on the implementation of the Law on Tax Administration with respect to electronic invoices and electronic documents

1. Scope of Regulation

Circular No. 32/2025/TT-BTC governs issues related to electronic invoices and electronic documents. The Circular provides guidance on the implementation of certain provisions of the Law on Tax Administration, Decree No. 123/2020/ND-CP, and Decree No. 70/2025/ND-CP. Specifically, it focuses on the issuance of electronic invoices for financial leasing activities and the transitional handling of matters related to electronic invoices and documents.

Subjects of Application:
The provisions of Circular No. 32/2025/TT-BTC apply to organizations and individuals as specified in Article 2 of Decree No. 123/2020/ND-CP and Clause 1, Article 1 of Decree No. 70/2025/ND-CP.

2. Authorization to Issue Electronic Invoices

Under the provisions of this Circular, business entities engaged in the sale of goods or provision of services may authorize a third party to issue electronic invoices, provided that the third party meets the conditions for using electronic invoices and is not subject to suspension from invoice use.
Such authorization must be made in writing in the form of a contract or agreement between the authorizing party and the authorized party. Additionally, the authorization information must be reported to the tax authority during the electronic invoice registration process.

Electronic invoices issued by the authorized party must display complete and accurate information of both the authorizing party and the authorized party. Both parties bear the responsibility of disclosing the authorization publicly.
The authorized party must issue electronic invoices in accordance with the actual arising transactions and must comply with the applicable principles and regulations.

The authorization contract/agreement must include details such as the identities of the authorizing and authorized parties, specifics of the invoices subject to authorization, the purpose, duration of the authorization, and the invoicing/payment methods related to the authorized invoices.
Both parties are responsible for retaining these documents. Any change in the information related to the authorization shall be deemed a change in electronic invoice registration information and must be duly notified to the tax authority as per current regulations.

3. Principles for Applying Electronic Invoices in Specific Cases

a. Invoicing based on reconciliation:

Certain large-volume and high-frequency sales or service transactions that require reconciliation—such as derivative products, industrial catering services, commodity exchange services, credit information services, and taxi services for corporate clients—shall be invoiced in accordance with Point a, Clause 4, Article 9 of Decree No. 123/2020/ND-CP, as amended by Clause 6, Article 1 of Decree No. 70/2025/ND-CP.

b. Invoices for VAT-liable financial leasing:

Financial leasing institutions must issue invoices when leasing assets subject to VAT and must have corresponding input VAT invoices. The output VAT must match the input VAT, and the tax rate shall be indicated as "CTTC" (Financial Leasing).
If the leased assets are not subject to VAT, or if there is no input VAT invoice or no proof of VAT payment upon importation, then the electronic invoice must not include VAT.

4. Subjects Required to Transition to E-Invoice Usage

- Taxpayers currently using e-invoices without tax authority codes who wish to switch to invoices with codes must update their e-invoice usage information in accordance with the regulations.

- Taxpayers eligible to use e-invoices without codes under Clause 2, Article 91 of the Law on Tax Administration, but who are classified as high-risk under Circular No. 31/2021/TT-BTC dated May 17, 2021 (on tax risk management), and have been notified by the tax authority, must transition to e-invoices with tax authority codes.
These taxpayers must complete the transition within ten (10) working days from the date of notification.

- Enterprises engaged in multiple business activities must:

• • Register to use e-invoices generated from point-of-sale (POS) systems for business activities involving direct sales of goods/services to consumers (e.g., shopping malls, supermarkets, retail (excluding automobiles, motorcycles, and other motor vehicles), restaurants, food services, hotels, passenger transport, road transport support services, arts, entertainment, cinema operations, personal services under the Vietnam Standard Industrial Classification);
  • Register to use e-invoices with or without codes for other business activities.

5. Criteria for Identifying High Tax Risk Taxpayers

a. Criteria for High Tax Risk:

- Criterion 1: The owner or legal representative has engaged in invoice fraud or trading as concluded by a competent authority.

- Criterion 2: The owner or legal representative is listed under suspicious transactions pursuant to the Law on Anti-Money Laundering.

- Criterion 3: The business address is unclear or located in a residential apartment not permitted for commercial use; or the business location is outside the province/city of the head office/branch.

- Criterion 4: The owner or legal representative is also the owner/representative of a taxpayer currently suspended without a tax code closure or not operating at the registered address, or has committed violations related to tax, invoices, and documents as guided by the Ministry of Finance.

- Criterion 5: Other risk indicators as determined and announced by the tax authority.

b. Criteria for Very High Tax Risk:

The Department of Taxation shall stipulate specific scoring indicators for the assessment and classification of taxpayers as being of very high tax risk, on a periodic basis, to meet tax administration needs over time.

6. Effective Date

Circular No. 32/2025/TT-BTC takes effect on June 1, 2025, and supersedes Circular No. 78/2021/TT-BTC dated September 17, 2021, which provided guidance on several provisions of the Law on Tax Administration dated June 13, 2019, and Decree No. 123/2020/ND-CP dated October 19, 2020, on invoices and documents.

- Business households and individual businesses subject to the presumptive tax method who registered for and used POS-generated e-invoices prior to June 1, 2025, may continue using the POS-generated e-invoices already registered with the tax authority.

- Especially, enterprises engaged in direct-to-consumer sales of goods or services (such as shopping malls, supermarkets, retail (excluding automobiles, motorcycles, and other motor vehicles), food and beverage services, restaurants, hotels, passenger transport, road transport support services, arts, entertainment, cinemas, and personal services per the Vietnam Standard Industrial Classification) that registered for e-invoices with or without codes for such activities before June 1, 2025, may choose either to convert to POS-generated e-invoices in accordance with Decree No. 70/2025/ND-CP or continue using the previously registered e-invoices.

For more detailed information about this or related Tax Advisory, please don't hesitate to contact us.
Website: https://kmc.vn/
Hotline: +84 81 489 4789 or +84 91 988 9331
Email: info@kmc.vn