What is a VAT/RED invoice?

In Vietnam, unlike many other countries, invoices must be purchased in advance. Since 2019, it is mandatory for new companies to use electronic invoices (e-invoices). These are called “red” invoices or VAT invoices or “hóa đơn đỏ”. In Western countries, any document titled “invoice” can be used and considered as an invoice by the stakeholders. In Vietnam, such as in China, the invoices system is centralized and each company must purchase a stock of invoices that will be used when they want to “declare” a business or a transaction. It also means that if you do not issue an VAT invoice, your transaction will not be registered by the government therefore not accounted. Therefore issuing or not a VAT invoice will often depend on your Client’s requirements and discussions.

See also What subject may I use when issuing an official VAT Invoice ?