To strengthen the legal framework on e-invoices and ensure consistency in tax administration, the Ministry of Finance has issued Circular 32/2025/TT-BTC with several significant amendments related to e-invoices, e-documents, and VAT refund procedures for foreign individuals. These changes directly affect corporate accounting and tax compliance, requiring businesses to promptly update their internal processes to avoid legal risks.
In this article, DNP Viet Nam Law Firm summarizes and analyzes three major updates introduced by the Circular to help clients quickly grasp and apply the new regulations in practice.
1. Addition of 5 Criteria for Identifying “High-Risk” Enterprises Registering for E-Invoice Usage
Under Article 9 of Circular 32/2025/TT-BTC, tax authorities will assess risks when enterprises register to use e-invoices based on the following five criteria:
Criterion 1: The enterprise’s owner or legal representative simultaneously acts as owner/representative of other organizations or individuals that have been concluded to engage in invoice fraud or illegal invoice trading.
Criterion 2: The owner or legal representative of the enterprise is listed among individuals with suspicious transactions under the Law on Anti-Money Laundering 2022.
Criterion 3: The enterprise registers an unclear head office address, locates its office at a residential apartment not permitted for business use, or establishes a business location in a province/city different from its head office/branch.
Criterion 4: The enterprise’s owner/legal representative concurrently acts as owner/legal representative of another entity that is:
- “Suspended from operations without completing tax code termination,” or
- “Not operating at the registered address,”
and is associated with tax or invoice-related violations.
Criterion 5: Other risk indicators detected and notified by the tax authority for enterprise explanation.
2. Mandatory Use of the New Electronic PIT Withholding Certificate
Under Clause 2 Article 12 of Circular 32/2025/TT-BTC:
- From June 1, 2025, all organizations that withhold personal income tax (PIT) must discontinue use of the old PIT withholding certificate forms.
Enterprises are required to switch to the new electronic PIT withholding certificate prescribed under Decree 70/2025/NĐ-CP.
3. New Detailed Requirements for the “Value-Added Tax Invoice cum VAT Refund Declaration”
Previously, Circular 78/2021/TT-BTC did not clearly define the structure or required contents of the VAT invoice cum VAT refund declaration. Circular 32/2025/TT-BTC now provides a fully detailed and transparent set of requirements, thereby improving the legal framework for this special type of invoice and establishing a clear basis for VAT refund procedures.
According to Article 7 of Circular 32/2025/TT-BTC, the invoice includes three parts: A – B – C, corresponding to three different entities.
Part A – Completed by the Seller
The seller must fully provide:
- Invoice title: “VALUE-ADDED TAX INVOICE CUM VAT REFUND DECLARATION”
- Invoice code and form number
- Seller information: name, address, tax identification number
- Foreign buyer information: full name, nationality, passport number, date of issue and expiry
- Goods details:
- Item name, unit, quantity, unit price
- Amount before tax, VAT rate, VAT amount, total payment
- Brand, model, serial number, origin (for imported goods), machine number (for mechanical/electrical goods)
- Digital signature of seller and buyer
- Payment method: cash or international card (including card name and number)
Part B – Completed by the Customs Office
Customs officers will record:
- Item number
- Goods name and quantity
- VAT amount on the invoice
- Refundable VAT amount
- Inspection date (day/month/year)
- Name and signature of the customs officer
Part C – Completed by the Commercial Bank (Tax Refund Agent)
The commercial bank must provide:
- Flight or vessel number and date of the buyer’s departure
- Refundable VAT amount
- Payment method (cash or international card)
- Payment time
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