Eliminate lump-sum tax, apply electronic invoices: Reduce risks, avoid "unfair tax payment"

Mandatory use of electronic invoices generated from cash registers nationwide

According to Decree 70/2025/ND-CP amending and supplementing Decree 123/2020/ND-CP regulating invoices and documents, from June 1, business households with revenue from 1 billion VND/year must use electronic invoices connected to cash registers. Accordingly, tens of thousands of business households with revenue from 1 billion VND/year, belonging to industries such as: food and beverage, restaurants, hotels, supermarkets, retail... will issue electronic invoices, initiated from cash registers with data connection to tax authorities, instead of paying lump-sum taxes as before.

Along with Decree 70, the Tax Administration Law Project (replacement) has also proposed a roadmap to expand the scope of application of electronic invoices for cash registers, aiming to reduce administrative management costs of tax authorities and effectively manage revenue while ensuring that the administrative cost burden for micro-business households is not increased.

From June 1, businesses with revenue of 1 billion VND/year must use electronic invoices connected to cash registers (Illustration photo).

Specifically, from June 1, 2025, households and individuals doing business with revenue of 1 billion VND/year or more will be required to use electronic invoices generated from cash registers that are directly connected to tax authorities.

From January 1, 2027, households and individuals doing business with revenue of VND 800 million/year or more will be required to use electronic invoices generated from cash registers that are directly connected to tax authorities.

From January 1, 2028, this subject will continue to be expanded to all households and individuals doing business with a revenue threshold subject to value added tax of up to VND 800 million/year.

Roadmap to expand the scope of application of electronic invoices for business households. With this orientation, all business households will have to self-declare, self-pay taxes and keep books of invoices and documents. This regulation is assessed to fundamentally change the management method of tax authorities with business households and will create a "revolution" in tax management.

Faced with this information, many business households expressed their agreement, because the new tax management regulations can help them limit some risks, such as "unfair" tax payment due to confusion between business and personal cash flow; financial loss due to not being able to control input materials/output orders... However, there are also households that are hesitant to change their business operation methods.

Ms. Hoang Thi Mai, a household selling food, agricultural products and vegetables in Mai Dong, Hoang Mai District, Hanoi, said that her store's revenue is about more than 1 billion VND/year. If following Decree 70, from June 1, she will have to switch to using electronic invoices connected to cash registers. Ms. Mai shared that this new regulation can help the store issue invoices to customers because many customers also want to issue invoices. However, the vegetables she imports from the wholesale market are only written on paper, not registered by the store, so there is no input invoice.

“I have requested to make a list of imported goods, but the tax officer said that the list only applies to farmers who grow their own products. The goods I import from the wholesale market are from small traders and traders, so I cannot use the purchase list. Without an input invoice, I cannot issue an electronic invoice,” Ms. Mai wondered.

Ms. Nguyen Viet Trinh, a food service business owner in Bach Mai, Hai Ba Trung District, Hanoi, said that she installed the equipment at a cost of about 10 million VND. However, she is also concerned that the technology system will have problems when it officially goes into operation, leading to incorrect information input on input invoices or delayed invoice issuance... leading to the risk of being fined by the tax authority, if the supplier does not provide timely support.

“We really hope to have the support of the tax authorities to guide us so that we can operate in a simple way. While doing it, sometimes mistakes are unavoidable, so how can we distinguish which mistakes are intentional and which are unintentional? In addition, to create fairness for businesses that strictly comply, we suggest that there should be sanctions for businesses that do not issue electronic invoices or issue fake electronic invoices, issue paper invoices, not electronic invoices,” Ms. Nguyen Viet Trinh suggested.

Is it easy for business households to comply?

According to some tax experts, changing the habit of using paper invoices to electronic invoices can cause difficulties in the initial stages for business households. Technically, not all business households and individuals have connections and invested in equipment such as cash registers. This leads to many difficulties in the conversion, due to the investment costs of purchasing equipment and learning how to operate it.

Psychologically, households and individuals who have been enjoying lump-sum tax have now had to declare all their revenue and expenses, so they are hesitant to do so.

Ms. Nguyen Thi Cuc, President of Vietnam Tax Consultants Association (VTCA)

In the current context, Decree 70/2025 requires businesses to make the conversion. According to Ms. Nguyen Thi Cuc, President of the Vietnam Tax Consulting Association (VTCA), from June 1, this is no longer voluntary but mandatory. In addition, the time to issue invoices is right at the time of sale/service provision and collection, which means that they cannot be issued at the end of the day as before. This requirement applies to all retail, food and beverage, technology taxi activities, etc. Therefore, businesses need to comply with the law and update policies to help prevent risks.

“Business owners will be held legally responsible for the declared data. They will have to choose whether to take risks or comply with the law, and we advise households and individuals to work together to fulfill their tax obligations, thereby avoiding unfortunate risks. Moreover, the emergence of electronic invoices has helped us change and make it easier to declare taxes automatically,” said Ms. Nguyen Thi Cuc.

In addition, Ms. Cuc also noted that business households need to pay special attention to regulations on input invoices. Regulations on input VAT invoices must follow the invoice and voucher regime. During the declaration process, business households need to proactively declare actual revenue to avoid being detected by the Tax Authority for fraud.

“The principle is that purchased goods must have invoices, not just output invoices. Instead of issuing invoices at the end of the day as is currently the case, from June 1, electronic invoices must be issued wherever goods are sold and money is collected. This is a very new change, so households and individuals doing business need to understand and implement it,” Ms. Cuc noted.

As a tax consultant, Ms. Cuc emphasized the role of technology and support services. She encouraged households and individuals to use reputable accounting software and tax agency services to help them fulfill their tax obligations easily, accurately, cost-effectively and in compliance with the law. According to the Chairman of VTCA, households and individuals need to choose software solutions that are simple, easy to use and reasonably priced.

According to vov.vn

Source: https://baolaocai.vn/bo-thue-khoan-ap-dung-hoa-don-dien-tu-giam-rui-ro-tranh-nop-thue-oan-post401585.html