By May 17, more than one million electronic invoices with validation codes totalling more than VN?5.8 trillion were issued by tax authorities. 5.8 trillion is 5.800.000.000.000 and compares to 259,507,396 USD or 232,077,464 EUR.
The total value added tax was worth VN?286 billion (Equal to 12,796,399 USD or 11,443,819 EUR), the General Department of Taxation reported.
By Decision 1209/Q? BTC dated June 23, 2015, the Ministry of Finance decided to start a pilot to use electronic invoices with a validation code from tax authorities for a number of enterprises in Ho Chi Minh City and Hà N?i. The pilot started in June 2015 and ends in December 2016. In Ho Chi Minh City, 116 enterprises were approved and in Hà N?i 121 businesses were approved.
According to Nguyen Van Thuy, of the General Department of Taxation, the process to apply a pilot electronic invoice with tax authorities for 200 enterprises in Ha Noi and Ho Chi Minh City has been basically successful.
Most of the tax-payers accepted the use of e-invoices, bringing practical efficiency and cost savings for the participating businesses. However, the pilot did show some problems:
- Most of the small and medium-sized enterprises have limited finances, poor managerial skills and obsolete information technology infrastructure. So, the number of enterprises that are capable of meeting conditions for the application of e-invoice remained modest.
- The traditional habits of people and businesses also proved to be a barrier, as they still prefer to use printed invoices when purchasing goods and services. Because most of them do not understand the benefit of e-invoices so that they are reluctant to use them
- Lastly, the information technology infrastructure of the State agencies is obsolete too and lacks investment, which allows for only limited usage of e-invoicing.
According to the General Department of Taxation, it has set a target of implementing the electronic invoice and electronic invoices with validation code of tax authorities for businesses across the country within the next few years.
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