Red Invoices in Vietnam: Mandatory Issuance, Classifications, and Compliance Regulations 2026
A comprehensive guide for businesses and entrepreneurs on red invoice (VAT invoice) regulations in Vietnam, including updated issuance timelines, mandatory subjects, and the latest penalty framework under Decree 310/2025/NĐ-CP.
1. Why is it Mandatory to Issue Red Invoices?
In Vietnam, businesses, households, and individual entrepreneurs must issue invoices for any goods sold or services provided, regardless of the transaction value. This requirement extends to promotional items, samples, advertising, exchanges, and gifts. Red invoices serve as the legal basis for:
Accounting: Recording production and business costs.
Tax Compliance: Determining the amount of Value Added Tax (VAT) payable to the State budget.
Previously, under Circular 39/2014/TT-BTC (now expired), invoices were only mandatory for transactions of 200,000 VND or more. However, current regulations mandate issuance for all values.
Strategic Note: This shift prevents "invoice splitting" (breaking down large transactions into smaller ones under 200,000 VND) to evade taxes, ensuring transparency in State revenue. Furthermore, for entities using the VAT deduction method, these invoices are vital for VAT refund eligibility.
2. Classifications of Red Invoices
According to Decree 123/2020/NĐ-CP (amended by Decree 70/2025/NĐ-CP), invoices are categorized into two primary forms:
Electronic Invoices (E-invoices)
E-invoices generated from Point-of-Sale (POS) systems: These are connected directly to tax authorities. They feature a unique tax code, allowing buyers to instantly retrieve and declare information. Data is transferred to the tax department at the moment of issuance.
Standard E-invoices: These may or may not have a tax authority's code, provided by the seller to the buyer via electronic means.
Invoices Printed by Tax Authorities
Paper invoices printed by the tax office specifically for organizations or individuals who are not yet eligible to issue e-invoices.
3. Who is Required to Issue Red Invoices?
| Target Subject | Revenue Threshold for Issuance | Invoice Form | Legal Basis |
|---|---|---|---|
| Enterprises | Any value | E-invoice / POS E-invoice | Clause 1, Art. 11, Decree 123/2020/NĐ-CP (Amended by Decree 70/2025/NĐ-CP) |
| Business Households | From 1,000,000,000 VND (1 Billion VND) | POS E-invoice | Clause 1, Art. 11, Decree 123/2020/NĐ-CP (Amended by Decree 70/2025/NĐ-CP) |
4. Timing of Invoice Issuance
Proper timing is crucial to avoid administrative penalties. The following table outlines the requirements:
| Case | Timing of Issuance | Legal Basis |
|---|---|---|
| Sale of Goods (including public assets & national reserves) | At the time of transfer of ownership or right of use | Clause 1, Art. 9, Decree 123/2020/NĐ-CP (Amended 2025) |
| Export of Goods (including processing for export) | No later than the next working day after customs clearance | Para 2, Clause 1, Art. 9, Decree 123/2020/NĐ-CP (Amended 2025) |
| Service Provision (including services for foreign entities) | At the time of completion of the service | Clause 2, Art. 9, Decree 123/2020/NĐ-CP (Amended 2025) |
5. Administrative Penalties for Non-compliance
Effective from January 16, 2026, Decree 310/2025/NĐ-CP introduces a stricter penalty framework for incorrect timing or failure to issue invoices.
Penalties for Incorrect Timing of Issuance
| Penalty Type | Total Invoices Issued | Number of Violating Invoices | Fine Amount (VND) |
|---|---|---|---|
| Warning | 01 | 01 | N/A |
| Fine | 02 to < 10 | 01 | "500,000 – 1,500,000" |
| Fine | 10 to < 50 | 02 to < 10 | "2,000,000 - 5,000,000" |
| Fine | 50 to < 100 | 10 to < 20 | "5,000,000 - 15,000,000" |
| Fine | 100 or more | 20 to < 50 | "15,000,000 - 30,000,000" |
| Fine | 50 to < 100 | 50 to < 100 | "30,000,000 - 50,000,000" |
| Fine | 100 or more | 100 or more | "50,000,000 - 70,000,000" |
Penalties for Failure to Issue Invoices
| Penalty Type | Total Required Invoices | Number of Non-issued Invoices | Fine Amount (VND) |
|---|---|---|---|
| Warning | 01 | 01 | N/A |
| Fine | 02 to < 10 | 01 | 1,000,000 – 2,000,000 |
| Fine | 10 to < 50 | 02 to < 10 | 2,000,000 – 10,000,000 |
| Fine | 50 to < 100 | 10 to < 20 | 10,000,000 – 30,000,000 |
| Fine | 100 or more | 20 to < 50 | 30,000,000 – 50,000,000 |
| Fine | 50 or more | 50 or more | 60,000,000 – 80,000,000 |
Conclusion: Compliance with invoice regulations is not just a legal duty but a critical component of risk management for Felix and other business leaders. The escalating fine structure (up to 80,000,000 VND) aims to enforce discipline in revenue recognition and prevent tax fraud.
Contact Information
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Address: 3rd Floor, 18A/76 Nguyen Thi Minh Khai, Da Kao Ward, District 1, Ho Chi Minh City.
Hotline: 0914.491.911
Email: info@dlpinnacle.vn
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