From 01/7/2026, the legal framework for electronic invoices in Vietnam enters a new phase. Decree 254/2026/ND-CP — the key framework decree on electronic invoices — officially takes effect, replacing the entire previous framework, including Decree 123/2020/ND-CP, Decree 70/2025/ND-CP and Article 1 of Decree 41/2022/ND-CP. Together with the Law on Tax Administration 108/2025/QH15 (effective from 01/7/2026) and Circular 91/2026/TT-BTC, these three instruments govern all activities of issuing, using and managing electronic invoices in 2026 and the years ahead.
This article provides an overview of the core new points of the framework: the three types of electronic invoices, the expanded scope of mandatory application, the new exemption groups, electronic commercial invoices and the new rule on advances under service contracts — so that businesses can proactively review their obligations.
The new electronic invoice framework from 01/7/2026
Before 01/7/2026, electronic invoices were governed mainly by Decree 123/2020/ND-CP and its amending instruments. From 01/7/2026, that entire framework is replaced by Decree 254/2026/ND-CP, issued on 30/6/2026 and effective from 01/7/2026.
The three instruments forming the new framework are:
- Law on Tax Administration 108/2025/QH15 — the parent law, effective from 01/7/2026, providing the general framework for tax administration, including principles for electronic invoice management;
- Decree 254/2026/ND-CP — the key framework decree with detailed provisions on electronic invoices;
- Circular 91/2026/TT-BTC — detailed guidance on the implementation of certain contents of Decree 254/2026, effective from 01/7/2026.
Businesses and household businesses should note: from 01/7/2026, citing old instruments such as Decree 123/2020 or the Law on Tax Administration 38/2019 as current legal basis is no longer appropriate.
Three types of electronic invoices under Decree 254/2026
Decree 254/2026/ND-CP classifies electronic invoices into three types:
- Electronic invoices with a tax authority code — invoices authenticated with a code issued by the tax authority before the seller sends them to the buyer;
- Electronic invoices without a code — applicable to enterprises in specific industries with IT infrastructure qualified for direct connection with the tax authority;
- Electronic invoices generated from cash registers — invoices generated from cash register systems connected to transfer data to the tax authority, commonly seen in retail, food and beverage and services.
Identifying the invoice type that fits the business model is the first step businesses should review when moving to the new framework.
Expanded scope of mandatory application
One of the most significant new points of Decree 254/2026 is the expanded scope of mandatory electronic invoice application:
- Household and individual businesses with annual revenue above VND 1 billion must apply electronic invoices;
- Sales of assets subject to ownership or use-right registration also fall under the mandatory scope;
- Sellers of goods and providers of services on e-commerce platforms must issue electronic invoices for their transactions;
- E-commerce platform operators must provide transaction data to the authorities, including buyer information, delivery time and transaction completion confirmation.
The new rule on platform operators responsibilities places e-commerce platforms in the position of a data bridge between sellers and the tax authority — a trend consistent with the policy of strengthening tax administration over e-commerce in 2026.
New exemption groups
In addition to expanding the mandatory scope, Decree 254/2026 adds several groups exempt from electronic invoice application, notably:
- Real estate leasing — including lodging-house rental — is exempt from electronic invoice application, regardless of revenue level;
- Provision of digital content to overseas organizations and individuals falls under the new exemption.
Businesses in these two groups should carefully compare the exemption conditions with the original text before deciding not to apply electronic invoices, and avoid confusing this with other tax obligations that remain in force.
Electronic commercial invoices for export activities
Decree 254/2026 provides for electronic commercial invoices applicable to goods exports and provision of services abroad. This new point helps synchronize international trade documentation with the domestic electronic invoice system, facilitating exporters in documentation and declaration procedures.
Advances under service contracts: invoices required upon receipt of payment
From 01/7/2026, when receiving advance payments under service contracts, the service provider must issue an invoice at the time of receipt — the new rule retains no exclusions as before. Service providers should adjust their accounting and invoicing procedures accordingly, especially for long-term service contracts with multiple advance installments.
Abolition of paper invoices printed by the tax authority
Also from 01/7/2026, paper invoices printed by the tax authority are officially abolished. This is the final step in the roadmap for full digitalization of invoice management — all entities in the mandatory scope must switch to electronic invoices.
Frequently asked questions
When does Decree 254/2026/ND-CP take effect?
Decree 254/2026/ND-CP was issued on 30/6/2026 and takes effect from 01/7/2026, replacing the entire previous legal framework on electronic invoices.
Must household businesses with revenue below VND 1 billion use electronic invoices?
Under Decree 254/2026, the mandatory threshold is annual revenue above VND 1 billion (or sales of assets subject to registration). Household businesses below this threshold are not in the mandatory scope under the new rule, except in other specific cases.
Must sellers on e-commerce platforms issue electronic invoices?
Yes. Decree 254/2026 requires sellers of goods and providers of services on e-commerce platforms to issue electronic invoices; platform operators must also provide transaction data to the authorities.
Which instrument provides detailed guidance on Decree 254/2026?
Circular 91/2026/TT-BTC, effective from 01/7/2026, provides detailed guidance on the implementation of Decree 254/2026/ND-CP.
Recommendations for businesses
Given the scale of changes from 01/7/2026, businesses should: (1) identify the electronic invoice type that fits their business model; (2) review whether they fall into the newly expanded mandatory scope or the new exemption groups; (3) update invoicing procedures for advance payments under service contracts; (4) compare the full text of Decree 254/2026 and Circular 91/2026 before applying them to specific cases.
Note: This article is for general information only and does not constitute legal advice for any specific case. You should consult a lawyer before making decisions.
Transparency note: This content was drafted by AI under the FLAW SEO Autopilot process — reviewed by the QA Council (AI Legal Council) and approved by the owner. It is not a lawyer opinion and is not recorded as lawyer-approved.
Do you need advice on electronic invoice obligations under the new regulations? Contact FLAT Law Firm for support.
