Decree 254/2026 on e-invoices: new invoicing-time rules and the mistakes most likely to be penalised
The short answer
From 1 July 2026, Decree No. 254/2026/ND-CP and Circular No. 91/2026/TT-BTC replace Decree No. 123/2020/ND-CP, Decree No. 70/2025/ND-CP and Circular No. 32/2025/TT-BTC. For services, the core rule is that the invoice is issued when the service is completed, whether or not payment has been received. Where payment is collected before or during the service, the invoice is issued when payment is received.
Three changes stand out:
a deposit under the Civil Code securing a service contract does not trigger an invoice on receipt;
the list of services that may be invoiced after reconciliation (within a maximum of 7 days) has been expanded;
transactions during night working hours may be invoiced no later than the next working day.
Late invoicing is now penalised by the number of invoices affected, up to VND 70 million.
Why invoice timing is the biggest compliance risk in 2026
In many tax audits, the question is rarely whether an invoice exists. It is whether the invoice was issued at the right time.
With invoicing fully digitised, the issue date, signing date and bank receipt date can all be matched automatically. A small delay repeated hundreds of times a year can add up to a significant penalty. It can also bring late-payment interest on the VAT that was declared late as a result.
Quick reference: invoicing time under Decree 254/2026
Situation | When to issue the invoice |
Provision of services | On completion of the service, whether or not paid |
Services paid in advance or during performance | On receipt of payment |
Deposit under the Civil Code securing performance of a service contract | No invoice required on receipt of the deposit |
Recurring, high-volume services requiring reconciliation (e.g. advertising on online newspapers and digital platforms, insurance, security, maritime pilotage, industrial catering) | On completion of reconciliation, but no later than the 7th day of the following month or 7 days after the end of the agreed period |
Transactions during night working hours where the seller has no automated invoicing software | No later than the next working day |
Invoices generated from cash registers connected to the tax authority | At the end of each transaction (no end-of-day consolidation unless specifically permitted) |
Healthcare facilities, services with printed receipts, patient does not request an invoice | Consolidated invoice at the end of the day |
Decree 254/2026 also allows consolidated end-of-day or end-of-month invoices for certain services supplied to individuals who do not request an invoice. The condition is that the supplier operates an electronic transaction management system and provides detailed data when the authorities request it.
The digital signing time is now a separate mandatory field, distinct from the invoice issue time.
Penalties under Decree 310/2025/ND-CP (effective 16 January 2026)
Decree 310/2025 amends Decree 125/2020 and introduces penalties that scale with the number of non-compliant invoices:
Late invoicing: from a warning up to VND 70 million, depending on the number of invoices. The top bracket of VND 50–70 million applies to 100 or more invoices.
Failure to issue an invoice: fines of up to VND 80 million.
Multiple breaches in one case: where they remain within the limitation period and are penalised together, they are treated as a single violation. However, the fine bracket is set by the total number of invoices, so small but systematic errors still land in the higher brackets.
The 6 most common mistakes
Treating an advance payment as a deposit. Only a genuine deposit under the Civil Code is exempt from invoicing on receipt. A partial prepayment of the contract price must still be invoiced when received.
Waiting for acceptance or payment before invoicing, even though the service has actually been completed.
Consolidating invoices at month-end for services that are not on the permitted reconciliation or consolidated-invoice lists.
Multi-phase contracts without clear completion milestones, which makes it impossible to determine when each invoice is due.
A signing date that differs from the issue date without a valid reason. This is easy for the tax authority to detect automatically.
On the buyer's side: accepting invoices with incorrect details, or buying from high-risk or inactive suppliers. The result can be disallowed expenses and disallowed input VAT.
Illustrative case: deposit or advance payment?
Company A signs a VND 500 million consulting contract and receives VND 150 million upfront.
Option 1: the contract calls the payment a "30% advance on the contract price". This is payment received before the service, so Company A must issue an invoice on receipt.
Option 2: the contract structures the payment as a "deposit securing performance of the contract" under Article 328 of the Civil Code, with clear deposit mechanics (refund, set-off against the price, or forfeiture on breach). In that case Company A does not need to issue an invoice when it receives the deposit.
The tax authority looks at substance, not labels. A loosely drafted "deposit" clause without real security mechanics may still be treated as an advance payment. This is a clear example of why contracts and tax must be designed together.
What businesses should do now
Build a "revenue map": list each revenue stream and attach the applicable invoicing-time rule.
Review contract templates, especially deposit, advance, acceptance and milestone clauses.
Check invoicing software settings: signing time, night shifts and reconciliation periods.
Reconcile invoice issue dates against bank statements and acceptance records every month.
For purchases: check each supplier's operating status and tax risk rating before paying.
FAQs
When does Decree 254/2026 apply and what does it replace?
From 1 July 2026. It replaces Decree No. 123/2020/ND-CP and Decree No. 70/2025/ND-CP. Circular No. 91/2026/TT-BTC replaces Circular No. 32/2025/TT-BTC.
Must an invoice be issued when a deposit is received?
No, if the payment is a deposit under the Civil Code securing performance of a service contract. Advance payments and prepayments must still be invoiced on receipt.
What is the penalty for late invoicing?
Under Decree No. 310/2025/ND-CP, the fine depends on the number of non-compliant invoices, ranging from a warning to a maximum of VND 70 million.
Must night-shift sales be invoiced immediately?
If the transaction occurs during night working hours and the seller has no automated invoicing software, the invoice may be issued no later than the next working day.
Legal basis
Decree No. 254/2026/ND-CP dated 30 June 2026 on invoices and e-documents.
Circular No. 91/2026/TT-BTC dated 30 June 2026.
Decree No. 125/2020/ND-CP, as amended by Decree No. 310/2025/ND-CP.
Civil Code 2015, Article 328 (deposits).
Law on Tax Administration No. 108/2025/QH15.
How W&A can help
Invoicing risk rarely sits in the software. It sits in contracts, processes and how the rules are read. With lawyers, licensed tax agents and accountants working on one platform, W&A helps businesses with:
E-invoice compliance review under Decree 254/2026: mapping revenue streams, setting the correct invoicing time for each and identifying existing errors.
Contract template redesign: aligning deposit, advance and acceptance clauses across legal and tax.
Support in invoice-related audits and penalties: explanations, mitigating factors and appeals against penalty decisions.
Internal audit of sales and receivables processes: reconciling invoicing, collections and revenue recognition.
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