Xero & Vietnam Accounting Standard (VAS) compliance
Bellow are key points to consider about Xero’s compliance when applied in Vietnam
| Xero | DIGITA Solution | |
| Use Vietnamese language | – The software interface is in English – The description of transaction and voucher forms can be in Vietnamese | – Using Vietnamese or bilingual for description – Redesign reports & voucher forms in Vietnamese |
| Use VND as the accounting currency | – Can use VND as the accounting currency – Multi currency (Premium plan) – Exchange rate handling is different from regulations | – Set up VND as the accounting currency (included in DIGITA implementation package) – Guide to handling foreign currency transactions (included in DIGITA implementation package) |
| Chart of Accounts (CoA) | – Default CoA is not compliance with VAS | – Setup CoA to ensure compliance with VAS (Circulars 200, 133 – included in DIGITA implementation package) |
| Reports | – Default reports in English – Template not follow with specified by VAS | – Customize Reports specified by VAS regulations (Circulars 200, 133 – included in DIGITA implementation package): + Statement of Financial position + Statement of Profit and loss report + Statement of Cashflow + Notes to Financial Statements |
| Voucher forms | – Default voucher template in English – Template not follow with specified by VAS | – Customize voucher forms (included in DIGITA implementation package): + Payment + Receipt + Invoice (Quote) + Bill (Purchase Order) + Statement |
| Tax | – The default tax rate is not matching with Vietnam regulation – Tax filing forms not follow with specified by authorities – VAT e-invoice issuing | – Setup VAT rate on Xero (included in DIGITA implementation package) – Using data from Xero and input into free declaration software (HTKK) – Can be integrated with 3rd party app for e-invoice (BKAV eHoadon: https://xero.vn/article/huong-dan-su-dung-tich-hop-xero-va-ehoadon/) |
| Fixed Asset | – Basically meet the regulations in Vietnam, need some setup steps (asset type, depreciation parameters…) | – Advice on how to use and manage fixed assets through DIGITA training packages |
| Inventory | – Simple inventory tracking (suitable for small trading companies: buy and sell finished goods only) – Can not track raw materials or work-in-progress – Can not allocate landing cost, import tax…must do by manually – Can not manage multiple warehouses – Can not operate with negative inventory – Inventory accounting method is only average cost (not other methods like FIFO…) | – Use an integrated 3rd party application for advanced inventory management: https://apps.xero.com/function/inventory |
Our Xero services: https://digita.vn/services/xero/