Hanoi struggles with new e-invoicing regulations: entrepreneurs in distress!

Hanoi struggles with new e-invoicing regulations: entrepreneurs in distress!

From June 1, 2025, new regulations introducing electronic invoices will come into force in Vietnam, which will have a significant impact on the operations of many companies. In particular, in Hanoi and other cities, numerous businesses have temporarily closed, while some continue to operate but have restricted payment methods. Many companies are increasingly only accepting cash, while others are charging higher prices if they accept bank transfers. These developments show that entrepreneurs are hesitant to respond to the new requirements, which is confirmed by a survey showing that many companies either remain closed or are reluctant to reopen. Vietnam.vn reports that Mr. Luu Duc Tho, a clothing store owner, has expressed his concerns about the adaptability of his industry.

The challenges arising from the new guidelines are diverse. Mr Tho calls for differentiated tax calculation methods that are specifically tailored to different company sizes. According to Pham Thi Giang, CEO of a tax consultancy, many companies are worried about possible chargebacks that could occur if there is a sudden increase in revenue. Small companies in particular often have cash registers, but struggle with the complexity of their use and the technical connection.

Difficulties and support for companies

Lawyer Nguyen Thi Ngoc Anh describes the new regulations as potentially beneficial to the business environment, but recognizes the significant difficulties, particularly for older business owners. Many companies are forced to invest in new technologies and management processes, which represents a major challenge for many. Nguyen Huu Thanh, deputy chairman of the Young Entrepreneurs Association, highlights the need for the government to provide more support and understanding to small and medium-sized enterprises.

Thanh draws a comparison between the current situation and the previous introduction of QR code payments, which were also met with initial skepticism. He also warns that avoiding bank transfers and increasing prices may be illegal and tax authorities could take action against it. Lawyer Nguyen Hung Quang points out the complexity of the new regulations, which make it particularly difficult for small companies to issue correct invoices. This could potentially lead to an increase in tax evasion, particularly if companies cannot meet the requirements.

The introduction of mandatory e-invoicing in Germany, which will come into force on January 1, 2025, is in a completely different context. The aim of this measure is to advance the digitalization of the German economy and simplify accounting processes. These new regulations require a structured electronic format, meaning traditional PDF invoices will no longer be accepted. Invoices that do not meet these requirements are considered “other invoices” and do not need to be issued in electronic formats until December 31, 2026. The Federal Ministry of Finance informs that The compulsory introduction of e-invoicing also applies to certain groups, such as clubs, if they are active in business.

The new regulations from both Vietnam and Germany show how important adapting to digital processes is for the future of the economy and what challenges this can bring for companies worldwide.