E-invoicing trends are rapidly reshaping how businesses reconcile financial transactions, with governments tightening compliance requirements across Vietnam and Asia. It’s going to be difficult for companies to keep pace with the constant changes in rules, along with incorporating advanced technology and ensuring tax reporting during the time when there will be a sudden change from paper-laden processes to digital invoicing.
Evolving e-invoicing adoption trends will shape future organisational processes streamlining compliance in future business operations. Preparation involves reviewing readiness, investing in the right technology, and compliance with international standards; however, keeping one’s head above water requires advance planning.
In this article, we’ll explore the latest developments, country-specific implementations, and key strategies to help businesses navigate the evolving landscape of e-invoicing.
E-Invoicing Trends in Vietnam
Mandatory Adoption and Regulatory Landscape
E-invoicing has played a very important role in the modernisation of tax administration in Vietnam towards the themes of transparency and efficiency. As of July 1, 2022, the mandatory use of e-invoices came into effect under Decree 123/2020/ND-CP and Circular 78/2021/TT-BTC, requiring businesses to transition from paper invoices to digital formats.
Key Regulatory Provisions and Compliance Requirements
The Vietnamese government has laid down some clear compliance provisions for a smooth transition:
- Mandatory E-Invoicing: All businesses except a few small and micro-businesses are required to issue electronic invoices.
- Real-Time Data Transmission: Companies must provide invoice data to the General Department of Taxation (GDT) in real-time via a qualified e-invoicing system.
- Digital Signature: E-invoices must be signed with the legal digital signature for proper authentication.
- Standardised Invoice Formats: XML or structured data format must be used by the business systems, allowing compatibility amongst the systems.
Fines, penalties, or business disruptions for non-compliance would force businesses to stay abreast of what is required by tax authorities.
E-Invoicing Trends Across Asia
APAC is entering into a new phase of adopting e-invoicing, being propelled forward by government mandates, tax digitisation initiatives, and demands for financial transparency. Electronic invoicing is very much part of modern financial ecosystems in the region as organisations want to streamline their operations while still complying with ceaseless changes in regulations.
Regional Adoption and Growth
The adoption of e-invoicing by APAC continues to grow with countries like China, India, Korea, or Australia leading it. According to Storecove, most of Asia is also experiencing lots of government initiatives towards tax compliance, fraud reduction, and efficiency improvement.
Key Drivers of E-Invoicing Adoption in Asia
- Government Regulations & Mandates
- Most countries have now launched mandatory electronic invoices for businesses so that all taxes are transparent.
- Compliance initiatives aim to prevent tax evasion along with real-time monitoring of invoices.
- Digital Transformation in Finance
- The cloud-based accounting and ERP software have ushered in an excellent opportunity for businesses to bring e-invoicing requirements with them.
- Companies are adopting automation, AI, or blockchain creating perfect conditions for safer and much more efficient invoicing.
- Cross-Border Trade & Standardisation Efforts
- Governments are aligning e-invoicing frameworks with international standards, like PEPPOL, to enable a seamless transaction across borders.
- Countries are joining hands to assist compliances as their businesses are globalising.
Country-Specific Implementations
China: Nationwide Rollout of Electronic VAT Invoices
China has been one of the front runners globally in tax digitalisation, e-invoicing being a core part of the tax reform strategy.
- The country launched electronic VAT special invoices (e-fapiao) under tax modernisation.
- China has expanded e-fapiao use nationally in 2023, now applicable to all businesses in China.
- By the Golden Tax System, real-time authentication of invoices is achieved under the e-fapiao system, thus reducing fraud and increasing tax compliance.
India: Phased Implementation of E-Invoicing Under GST
India has phased the implementation of e-invoicing under the Goods and Services Tax (GST).
- As of 2024, e-invoicing is mandatory for businesses with an annual turnover of INR 5 crore (~$600,000 USD) or more.
- The e-invoice generation is connected to the GST Network (GSTN) which implies that invoices must be validated in real-time before filing taxes.
- Businesses are required to generate IRN (IRS Reference Numbers) through the Government’s Invoice Registration Portal (IRP).
Singapore: Pioneer in PEPPOL Adoption
Singapore is an early regional leader in e-invoicing being the first outside the EU to adopt PEPPOL framework.
- The Infocomm Media Development Authority (IMDA) launched the PEPPOL e-invoicing initiative in 2019.
- Businesses can send and receive structured e-invoices across borders, reducing administrative costs and improving efficiency.
- Singapore’s approach sets a benchmark for digital invoicing interoperability across the APAC region.
Indonesia: E-Faktur Pajak for VAT Compliance
Indonesia has put in place an E-Faktur Pajak, an e-invoicing system whose use is expected to cut across the whole country for businesses registered for VAT.
- Starting from July 2016, all companies registered for VAT have moved to issuing invoices electronically through the Directorate General of Taxes (DGT).
- The system ensures the invoices are verified before tax reporting and hence minimises tax evasion.
- Indonesia is expanding the system towards integration with regional trade networks for smooth cross-border transactions.
South Korea: Early Adoption and Real-Time Tax Reporting
Since 2011, electronic tax invoicing has been required by law for VAT-registered businesses in South Korea, which has made the country one of the first adopters in Asia.
- Since 2014, e-invoicing has been required for individual businesses with an annual turnover exceeding KRW 300 million (~$225,000 USD).
- Obligation to the National Tax Service (NTS) of the country to submit the invoices within 48 hours after issuance guarantees effective tax tracking in real time.
- The digital signature system allows authentication and automatic VAT reporting thus reducing fraud as well as administrative burdens.
Future Trends in E-Invoicing Across Asia
Technological Advancements
E-invoices are progressing rapidly through AI, blockchain, and cloud computing – key components of establishing security, efficiency, and automation.
- AI and Machine Learning: AI automates and, by reducing the errors in data processing, provides improved detection of fraud and improved matching of invoices.
- Blockchain: Solutions for blockchain invoicing ensure that records will not be tampered with and will be able to show reduced risks associated with fraud and disputes.
- PEPPOL and Standardised Frameworks: The Pan-European Public Procurement On-Line (PEPPOL) Network is not only popular in the Asia-Pacific, but now internationally, for streamlining cross-border transactions. Singapore was the first nation to sign up to PEPPOL outside the EU block and other nations are following suit.
Global Harmonisation Efforts
All have made e-invoicing compulsory in several jurisdictions, and that is why global standardisation is becoming a priority now.
- Cross-Border Compliance: All countries are streamlining their e-invoicing frameworks to enhance compliance for multinationals.
- Intergovernmental Collaborations: Asia-pacific is becoming increasingly global in scope by having efforts that will synchronise e-invoicing regulations, easing the load of administration for businesses that are specified for international operations.
- Expanding Mandates: Governments are continuously reducing the e-invoicing thresholds, forcing more companies to comply. For instance, India’s Goods and Services Tax Network (GSTN) has announced that, effective April 1, 2025, taxpayers with an annual aggregate turnover (AATO) of ₹10 crore (approximately $1.2 million USD) and above will be mandated to upload e-invoices to the Invoice Registration Portal (IRP) within 30 days from the date of invoice issuance.
Preparing for E-Invoicing Adoption
Assessing Readiness
Before the transition to e-invoicing, businesses have to see their existing invoicing processes and check for adherence to regulatory requirements.
- Regulatory Compliance Check: Identify any e-invoicing mandates and reporting requirements pertinent to the country of concern.
- Current Systems Audit: Check if current accounting or ERP systems are able to integrate e-invoicing systems.
- Gap Analysis: Identify manual processes that will have to be moved into the digital world for smooth compliance.
Technology and Integration
Choosing the right e-invoicing technology becomes paramount for compliance, automation, and scalability.
- ERP & E-Invoicing Integration: Compatibility of e-invoicing solutions with existing ERP systems such as SAP, Oracle, and Microsoft Dynamics should be checked.
- Cloud-based Solutions: SaaS (Software-as-a-Service) e-invoicing platforms afford scalability, automatic compliance updates, and smooth transactions across borders.
- PEPPOL-Ready Systems: Organisations operating in different markets should opt for PEPPOL-compliant solutions to facilitate international invoicing.
Staff Training and Change Management
Employee training and change management are core strategies for the successful adoption of e-invoicing.
- Compliance Training: Training for finance and accounting teams with respect to e-invoicing requirements and tax reporting implications.
- Process Automation Guidance: To the understanding of teams on the impact of automation on the normal invoice transaction process.
- Smooth Transition Plan: This should be rolled out at various phases to lessen operational disruption.
Preparing for the Future E-Invoicing Trends with TRG International
From merely a trend, e-invoicing transitioned from being a worldwide phenomenon in nearly record time, rewriting the rules on financial operations, tax compliance, and indeed, business efficiency. It did not help that various governments across Asia are mingling with mandates – the business is not given time to meet compliance targets or even complete the deadline for implementation.
Implementing future-proof e-invoicing makes it easy for businesses to enhance its efficiency, lessen tax risks, and also keep it compliant in the long run. At TRGInternational, we help organisations complement the minutiae of the adoption of e-invoicing through best-in-class solutions and expert guidance. Contact us, and let’s get started for digital transformation!
