Vietnam tax agency mandates biometric e‑invoice authentication to curb ghost companies

The Vietnamese General Department of Taxation has upgraded the electronic invoice system (version 1.0) and, from 15 May 2026, requires the legal representative of every business to verify their identity using biometric authentication via the eTax Mobile app. The representative must hold a VNeID level‑2 account and complete fingerprint or facial verification; otherwise, any new registration or change of company information will be rejected.

The rule targets the widespread practice of stealing citizens’ identity cards to create “ghost” firms that issue fraudulent invoices for tax evasion. Officials cite cases where individuals unexpectedly discovered they were listed as directors of unknown companies and faced tax debts and travel bans. The new measure is part of a broader “Clean Tax Code” campaign, aiming to eliminate more than 963 500 inactive taxpayers—including 325 500 firms and 638 000 business households—who have accumulated tax liabilities. By tying e‑invoice usage to verified biometric data, the tax authority expects to improve transparency, reduce revenue loss, and render shell companies inoperable.