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)
Fixed Asset– Meet the regulations in Vietnam, need some setup steps– Advice on how to use and manage fixed assets through DIGITA training packages
Inventory– Simple inventory tracking (suitable for small trading companies)
– Can not manage multiple warehouses
– Can not operate with negative inventory
– Inventory accounting method is only average cost (not FIFO…)
– Use an integrated 3rd party application for advanced inventory management

Our Xero services: https://digita.vn/services/xero/