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Vietnam’s Tax Digitalization Progress in 2025: Highlights for Businesses
Vietnam has been speeding up its efforts to digitalize its tax administration system to achieve more efficient control and seamless compliance for all taxpayers. This article highlights the digital updates most affecting businesses and investors.
Electronic invoice and documentation system
Vietnam’s mandatory electronic invoice (e-invoice) regime has fundamentally reshaped how businesses interact with tax authorities. Under the newly updated tax regulations, companies must issue e-invoices and transmit data to the General Department of Taxation (GDT) through standardized XML formats, allowing real-time validation and integration.
Recent updates have expanded the scope of e-invoice users to include:
- Foreign suppliers without a permanent establishment in Vietnam engaging in e-commerce or digital services who voluntarily register for e-invoicing;
- Household and individual businesses with an annual revenue of VND 1 billion (US$38,462) or higher, as well as businesses operating in commercial centers or providing beverage services, which are now required to issue e-invoices from cash registers connected to the tax authority’s system; and
- Organizations and individuals responsible for withholding personal income tax (PIT) in digital transactions, who must register to use e-certificates.
These reforms mark a major leap toward a fully digital ecosystem, with reduced paperwork, faster tax filing and invoicing, and efficient real-time data verification. Tax authorities can now easily select, cross-check, and validate data samples, minimizing manual intervention and human error.
Integration of tax registration into the National Identification System
Since July 1, 2025, Vietnam has replaced the traditional tax identification number (TIN) with the personal identification number (PIN).
The GDT will access information directly from the National Population Database, enabling data synchronization between national and tax systems. This integration eliminates duplicate tax codes, simplifies taxpayer management, and significantly enhances data transparency.
Businesses should be aware that, under the new regime, Vietnam will no longer accept existing corporate accounts on the National Public Service Portal or other provincial-level digital accounts for managing online administrative procedures. All companies must now obtain a corporate electronic identification (e-ID) to continue handling administrative matters digitally.
While similar systems have long been implemented in developed economies, this is considered a breakthrough for Vietnam’s tax digitalization journey.
Taxpayers can also use digital identity accounts issued under the National Electronic Identification and Authentication System to complete tax registration electronically. This initiative reduces redundant information, strengthens data traceability, and facilitates digital compliance for small-scale taxpayers such as households and family businesses.
Tax management in the growth of e-commerce and digital transactions
Since March 2025, the Vietnamese tax authority has established a new E-Commerce Tax Sub-Department dedicated to monitoring and managing the activities of foreign suppliers conducting e-commerce business in Vietnam.
The Government has developed an e-tax platform that enables foreign vendors without a permanent establishment (PE) in Vietnam to directly file tax returns and make tax payments related to their e-commerce or digital transactions. Additionally, a dedicated support team has also been introduced to provide timely assistance to taxpayers in both Vietnamese and English.
Foreign companies engaged in e-commerce and digital activities can now register for a tax code to declare and pay taxes directly to the Vietnamese tax authority.
Virtual management of tax obligations
The GDT now partners with the Immigration Department to develop an extensive, interconnected data system that enables faster processing of tax obligations and supports exit restrictions for taxpayers with outstanding tax debts.
According to Decree No. 49/2025/ND-CP, temporary exit bans will be applied to the following cases:
- Individual and business household owners with tax debts of VND 50 million (approx. US$1,900) or more, overdue for over 120 days;
- Legal representatives of businesses, cooperatives, and cooperative unions with tax debts of VND 500 million (approx. US$19,000) or more, overdue for over 120 days;
- Individuals and legal representatives whose businesses are no longer operating at their registered address and have tax arrears overdue by more than 30 days after notification of a temporary exit suspension; and
- Vietnamese citizens and foreigners leaving Vietnam with tax arrears overdue past the payment deadline, who have not fulfilled their tax obligations.
However, the main challenge is that in-scope taxpayers often do not receive any prior tax notification until they start immigration procedures. To solve this, starting from May 12, 2025, all related processes will be handled electronically among the involved parties – the taxpayers, the Tax Authority, the State Treasury, and the Immigration Department. The system also actively alerts taxpayers through eTax Mobile, SMS notifications, and media channels, helping them resolve obligations quickly and avoid travel delays.
This initiative enhances transparency, discourages tax evasion, and promotes fairness in tax enforcement, especially for cross-border businesses.
Collaboration with the Social Insurance Authority for enhanced transparency
Vietnam’s tax and social insurance authorities have established an information-sharing mechanism that has strengthened the integration between tax and social insurance databases, improving data transparency. The collaboration prevents discrepancies, such as companies declaring different salaries for personal income tax (PIT) and social insurance (SI), by enabling cross-verification.
The implementation of Regulation No. 1999/QCPH-BHXH-TCT has improved coordination between the SI and tax authorities, boosting the efficiency of social and health insurance collection and tax administration.
Accordingly, data sharing between tax and SI authorities is conducted automatically through an integrated IT system. Tax authorities can utilize the shared data to develop tax risk assessments and determine measures for tax inspections and audits. Joint inspections may be conducted when risks related to PIT or SI contributions are identified. The data exchange includes taxpayer and employee information, insurance contribution details, and inspection findings from both authorities.
Regulation 1999 has stipulated more frequent and detailed inspections of corporate operations. Employers should, therefore, ensure the accuracy and consistency of PIT declarations and mandatory insurance payments to minimize potential compliance risks.
Consideration for business: Adopting technology for improved internal control
Digital transformation offers clear advantages, including increased transparency, efficiency, and automation, but it also requires companies to enhance their internal systems and compliance controls. With e-invoices and electronic records now verifiable in real time, the demand for accurate and timely accounting and tax reporting is higher, which can be addressed through technological tools for internal controls.
For example, modern enterprise resource planning (ERP) systems and accounting software in Vietnam are increasingly connected with government platforms, enabling automatic data synchronization and faster reconciliation. The linkage between e-invoicing systems and accounting software enables seamless synchronization, accelerating reconciliations and monthly tax reporting.
Tax authorities can now automatically verify e-invoices and tax declarations, issuing monthly or quarterly queries rather than waiting for post-audit inspections years later, helping reduce retrospective tax adjustments. Businesses should proactively deploy strategic measures to ensure real-time data accuracy and regulatory alignment. Strengthening digital governance and tax risk management will not only support transparency but also enhance operational resilience in Vietnam’s increasingly automated tax environment.
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Vietnam Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Hanoi, Ho Chi Minh City, and Da Nang in Vietnam. Dezan Shira & Associates also maintains offices or has alliance partners assisting foreign investors in China, Hong Kong SAR, Indonesia, Singapore, Malaysia, Mongolia, Dubai (UAE), Japan, South Korea, Nepal, The Philippines, Sri Lanka, Thailand, Italy, Germany, Bangladesh, Australia, United States, and United Kingdom and Ireland.
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