Only two petroleum businesses have adopted electronic invoicing after each sale

	Tax proportion in petrol price in Vietnam is lower than the average rate
	Intensified Deployment of Electronic Invoice Issuance for Each Petroleum Retail Sale

The Ministry of Finance calls for local authorities to engage actively in managing and applying E-Invoices in retail petroleum business operations. Photo: Internet

To date, only two businesses have initiated e-invoice issuance after each transaction

As defined in point i, paragraph 4, Article 9 of Government Decree No. 123/2020/ND-CP, dated 19/10/2020, the prescribed moment for issuing an E-Invoice in retail petroleum sales is immediately after the completion of each sale.

Sellers are obligated to ensure comprehensive archiving of E-Invoices for petroleum sales to both business and non-business individuals, with a system in place for quick retrieval when requested by authoritative bodies.

However, preliminary data from the Ministry of Finance reveals that currently, only the Vietnam Petroleum Group and the Ho Chi Minh City Petroleum Company Limited have adopted the practice of issuing E-Invoices after each sale, encompassing more than 2,700 retail stores, which constitutes about 16% of the nationwide total of petroleum retail outlets.

Other businesses and retail outlets, though they have initiated the use of E-Invoices, are not yet fully compliant with the requirement to issue these invoices after each sale, as mandated.

On 18/11/2023, the Prime Minister promulgated Directive No. 1123/CD-TTg to bolster the management and utilization of E-Invoices, a move aimed at supporting the national digital transformation. This was followed by Directive No. 1284/CD-TTg on 1/12/2023, focusing on the reinforced management and application of E-Invoices in retail petroleum business operations.

In response, the Ministry of Finance issued Directive No. 04/CT-BTC on 24/11/2023. This directive mandates tax authorities at all levels to intensify the management and implementation of E-Invoices, a step forward in the nation's digital transformation journey.

The General Department of Taxation, through Official Letter No. 5080/TCT-DNL dated 13/11/2023, directed tax departments to urgently enhance the management, inspection, supervision, and facilitation of E-Invoice issuance for each transaction in the retail petroleum sector.

Five Principal Strategies to Advance the Issuance of E-Invoices with Each Petroleum Transaction

The Ministry of Finance recently issued a communication to the Chairpersons of Provincial and City People's Committees, seeking collaboration in guiding the management and application of E-Invoices for retail petroleum business activities, highlighting several critical aspects.

Firstly, ensure comprehensive and prompt instillation of the understanding and responsibilities among organizations and individuals concerning the legal regulations on invoices and tax documentation as outlined in the Tax Management Law No. 38/2019/QH14. This includes particularly the regulations regarding E-Invoice issuance after each sale at retail petroleum outlets as specified in Decree No. 123/2020/ND-CP, which should be considered a compulsory and significant local mandate.

Secondly, instruct regional government agencies (Industry and Trade, Public Security, Information and Communications, Planning and Investment, Science and Technology, etc.) to collaborate tightly with tax authorities. This collaboration should involve forming interdepartmental teams to directly engage with businesses and retail petroleum outlets. The aim is to understand the practical aspects of E-Invoice issuance after each transaction, assess the technical infrastructure, and evaluate compliance capabilities with the regulation, while also liaising with solution providers.

Subsequently, advise and propose to the Provincial and City People's Committees various solutions and measures to motivate businesses and retail petroleum outlets to adhere to E-Invoice issuance regulations after each transaction, and enforce strict compliance with these regulations.

Thirdly, mandate the Department of Industry and Trade and market management authorities to rigorously oversee and inspect adherence to legal regulations in the petroleum business sector. This oversight should focus on E-Invoice issuance and data provision in accordance with the Tax Management Law, guidelines issued by the Ministry of Finance, and tax authorities, ensuring coordinated efforts with tax authorities to inspect, supervise, and rectify any legal breaches in E-Invoice issuance for each petroleum transaction.

Fourthly, direct the Department of Information and Communications, local media, and newspapers to join forces with tax authorities in intensifying and diversifying outreach initiatives. These initiatives should educate consumers and business entities on the benefits, responsibilities, and effectiveness of implementing E-Invoice issuance regulations for each transaction, including penalizing non-compliance.

Fifthly, empower relevant authorities to promptly identify and counteract emerging fraudulent activities related to E-Invoices, particularly in the petroleum sector, with the intention of preventing illegal profit-making or state tax embezzlement, and to devise timely preventive and corrective measures.

The Ministry of Finance underscores that the implementation of E-Invoice issuance for each petroleum transaction will significantly enhance control over invoice issuance, streamline revenue management, ensure tax compliance, prevent fraud in petroleum trade, curb smuggling, and guarantee a fair and transparent business environment, thereby augmenting state revenues.