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What is a VAT Invoice? 

A VAT invoice in Vietnam is a tax document issued to record the sale of goods or services, including the applicable VAT. Depending on the type of transaction, it may be issued as a separate electronic invoice or reflected through an electronic or point-of-sale receipt. It records important transaction details such as the seller, buyer, goods or services provided, quantity, price, VAT rate, VAT amount, and total amount payable. The components stated in the invoice can vary according to the invoice type and transaction.

These invoice records provide official documentation of a transaction and the VAT charged. For businesses, they support accounting records, and tax declarations. For the tax authority, VAT invoices create a traceable record of sales and services, helping improve transparency, reduce tax fraud, and monitor compliance. In simple terms, a VAT invoice is not just a receipt — it is an official tax document that connects the commercial transaction to Vietnam’s tax reporting system.

When does a VAT invoice need to be generated? 

In Vietnam, a VAT invoice generally needs to be generated when the sale or service is considered complete for tax purposes — for Vatico, we generate the invoice on the same day our courier partner delivers an order. For the sale of goods, this is usually when ownership or the right to use the goods is transferred to the buyer. For services, the invoice is generally issued when the service is completed, regardless of whether payment has already been made. If payment is collected before or during the provision of services, an invoice may also need to be issued at the time of payment collection, except for certain deposits or advance payments that are not yet considered revenue. For exported goods, newer guidance under Decree 70/2025/ND-CP states that the invoice should be issued no later than the next working day after customs clearance. 

The VAT invoice must be generated within the stipulated time frame because it fixes the timing of the transaction for tax reporting. The seller uses the invoice issuance date to declare output VAT and revenue, while the buyer relies on the invoice to support input VAT claims and accounting records. Issuing invoices on time also ensures that transaction data is transmitted properly to the tax authority under Vietnam’s e-invoice system. This helps prevent late reporting, mismatched tax declarations, and potential compliance penalties. In simple terms, the required timing exists so that the sale, tax obligation, and accounting record are all captured at the correct moment.

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