Electronic invoices have become a key tool in enhancing transparency within the petroleum market, with Prime Minister Pham Minh Chinh recently signing a telegram emphasizing their importance in controlling the distribution of petroleum products.
The Ministry of Industry and Trade (MOIT) issued urgent directives to provincial and municipal authorities, as well as key petroleum distributors, stressing the significance of using e-invoices and requesting the prompt provision of electronic invoice data following each sale.
One major player, Petrolimex, has been at the forefront of this initiative, issuing e-invoices at all 2,700 of its filling stations nationwide. By leveraging automation technology, the distributor ensures the accuracy and transparency of over 1 billion invoices issued annually. Since July 1, 2023, Petrolimex has set an example by issuing more than 700 million VAT invoices per sale in compliance with government Decree 123.
In a bid to further enhance transparency, Petrolimex has extended its efforts to display car number plates of vehicles entering its filling stations since September 1, 2023. However, despite these advancements, the issuance of e-invoices for every sale remains largely limited to large customers, constituting only 4-5% of clients, with individual customers accounting for the remaining 95-96%.
While Petrolimex has successfully implemented e-invoices through a seamless software system, other retailers face challenges in adopting similar solutions. Cost implications, the need for new electronic fuel pumps, and varying price levels set by e-invoice software providers pose hurdles for many retailers. Furthermore, the transition to e-invoices necessitates compliance with regulatory requirements, including approval from the Ministry of Science and Technology under the Law on Measurement.
Despite some resistance from petroleum retailers, industry experts assert that the adoption of e-invoices enables real-time monitoring of petroleum input and output volumes, facilitating better market management. By providing exact data to regulatory bodies such as the General Department of Taxation, e-invoices could revolutionize the oversight and regulation of the petroleum market, crucial for ensuring a steady supply of this strategic commodity.
To streamline the transition to e-invoices, filling stations have two options proposed by technology experts. By incorporating control cabinets or smart cameras equipped with invoice solutions, retailers can simplify the issuance of e-invoices in compliance with tax regulations. With the cost of transition estimated at VND5 million per filling station and VND30 per e-invoice, this approach offers a viable path towards enhancing transparency within the petroleum sector.
Overall, the adoption of e-invoices presents both opportunities and challenges for petroleum retailers in Vietnam. While the move towards greater transparency is vital for market regulation, addressing the practical considerations involved in transitioning to e-invoices will be crucial for ensuring a smooth and effective implementation across the industry.
