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Vietnam Allows Foreign Suppliers to Issue E-Invoices to Support VAT Recovery
Vietnam has introduced new e-invoicing rules allowing foreign businesses to voluntarily issue Vietnamese electronic invoices, a move that could simplify VAT recovery for domestic business customers purchasing from overseas suppliers.
The changes are contained in Decree 254/2026/ND-CP and Circular 91/2026/TT-BTC, which took effect on 1 July 2026 and update Vietnam's electronic invoicing framework.
Under the new rules, foreign organisations, including e-commerce marketplaces and digital platform operators supplying customers in Vietnam, may register to issue Vietnamese e-invoices. According to VATCalc, this enables Vietnamese business customers to recover input VAT using those invoices, potentially reducing friction in cross-border B2B transactions and bringing overseas suppliers more closely into Vietnam's digital VAT system.
The reforms also introduce a number of wider changes to Vietnam's e-invoicing regime. These include greater flexibility over invoice timing for certain high-volume or recurring transactions, confirmation that service deposits paid under contracts do not require an invoice, and the extension of mandatory e-invoicing to household and individual businesses with annual turnover exceeding VND 1 billion. Certain sectors, including crypto asset and carbon exchange support services, may also issue e-invoices without tax authority codes, while paper receipts may continue to be used until 31 December 2026 during the transition to fully electronic receipts.
For businesses selling digital services into Vietnam, the optional e-invoicing regime represents one of the most significant developments. While participation is voluntary, the ability to issue locally recognised electronic invoices could improve the customer experience for Vietnamese businesses by supporting input VAT recovery, while giving overseas suppliers another route to align with Vietnam's increasingly digital tax administration.
Decree [in Vietnamese]
