An opportunity for whom?

Although a necessary step towards a transparent economy, the new tax policies are creating significant disruption in the market structure. Market players are not only forced to adapt, but also to proactively reshape their competitive advantages to seize opportunities and assert their position in this new playing field.

At Dong Xuan Market 4.0, many businesses still collect cash when selling goods.

From January 1, 2026, nearly 3.7 million households and individual businesses will no longer pay business license fees, officially ending the lump-sum tax method after more than three decades of application. While the reform aims to create a fair and transparent tax system and has received widespread support, many small businesses still have concerns. The shift to electronic tax filing, software usage, and electronic invoicing—processes that were previously unfamiliar—requires significant changes in business habits and operations.

Hesitant and anxious about change.

In recent days, in many commercial areas, it has not been uncommon to see small businesses simultaneously halting bank transfers, delaying tax returns, or even closing down. The main reason for this situation is the confusion surrounding changes in tax policy, especially the regulation requiring all businesses with annual revenue of 1 billion VND or more to use electronic invoices generated from point-of-sale systems connected to the tax authorities, effective from June 1, 2025.

Ms. Nguyen Thi Mai, owner of a shoe store at Thanh Cong Market ( Hanoi ), said: “With a tax rate of 1.5% on revenue, while profit margins only range from 2-5%, the store hardly makes any profit. I am having to calculate and adjust the selling prices accordingly. In addition, my age makes it difficult to operate the sales software and issue electronic invoices; I have to ask my children and grandchildren for help because I was only used to writing invoices by hand before.”

According to Ms. Mai, traditional businesses were already facing difficulties due to pressure from e-commerce. Now, with the added worry of being fined or having goods confiscated for lacking valid input invoices, many small traders are feeling insecure.

Even individuals doing business on social media have simultaneously announced adjustments to their payment and transfer methods. Accordingly, many online sellers posted statuses such as: “From June 1st, due to changes in tax regulations, personal accounts with total incoming and outgoing transactions exceeding 1 billion VND will be subject to a 1.5% tax. Therefore, if paying by bank transfer, please add an additional 1.5% for tax purposes. When making a transfer, please do not include any details related to the amount of goods. Please take note to avoid potential risks arising from the new tax regulations.”

Or consider these warning messages: “Please note, when transferring money, do not include a transaction description. Including a description will incur a 10% tax”; “Please leave the transaction description blank or write anything you like, as long as it's not related to buying or selling.” More specifically, Lan Chi, who sells cosmetics, advises: “From now on, when transferring money to me, please avoid sensitive words like: Buy - Sell - Amount of goods - Deposit. Instead, please write something cute and cheerful.”

Along with a cautious attitude towards changes in tax policy, many individuals and business households have recently sought to circumvent the new regulations by only accepting cash payments or requesting bank transfers to accounts not linked to the tax authorities.

Mr. Minh Duc (Dong Da District, Hanoi) recounted that on the morning of June 7th, when he went to his usual coffee shop, he was surprised to see a small sign at the cashier's counter that read: "Bank transfer incurs an additional 5% fee." When he inquired about the reason, the owner explained that bank accounts receiving large transactions are subject to stricter scrutiny under new tax regulations, resulting in higher taxes than the previous fixed rate. To compensate for this difference, the shop was forced to apply a surcharge for customers paying by bank transfer.

The practice of businesses restricting bank transfer transactions has become increasingly common in many areas of Hanoi in recent days. In response to this, Mr. Mai Son, Deputy Director of the Hanoi Tax Department, issued a warning: The tax authorities currently possess an interconnected data system from multiple sources such as banks, the Ministry of Public Security , the Ministry of Industry and Trade, e-commerce platforms, and shipping companies. With this information network, it is difficult for businesses and individuals to avoid scrutiny when they transport goods themselves, collect cash, or use accounts that are not registered in their own names. The tax authorities can completely review and cross-check information from shipping companies and banks to monitor cash flow and ensure that tax declarations and payments are in accordance with regulations.

Transforming from a "clench" to a "leap"

Commenting on the current disruptions, lawyer Thu Ha (Hanoi Bar Association) stated that this is an inevitable consequence of the transition from lax to strict management, from subjective to transparent. Previously, most households and small-scale businesses only kept simple records by hand, so the lump-sum tax was considered suitable for the early stages of a market economy , when households were small and lacked the resources to apply technology or professional accounting. However, in the context of a digitized economy and deep integration, the lump-sum tax gradually revealed limitations such as lack of transparency, revenue losses, and inequality between households and businesses.

Many shops on Hang Ngang and Hang Dao streets (Hanoi) have been closed since the beginning of June.

As of March 2025, nearly 2 million households nationwide paid flat-rate taxes, but only about 6,100 households filed tax returns. On average, each household paying flat-rate taxes paid only about 670,000 VND/month, while those filing tax returns had to pay up to 4.6 million VND/month, a difference of nearly seven times. This shows a clear inequality in tax obligations between business models with similar revenue scales.

According to lawyer Thu Ha, this tightening of tax management is not intended to create difficulties for individual business households, but rather to build a fair and transparent business environment. Eliminating the lump-sum tax mechanism, which has many shortcomings such as "favoritism, collusion, and payment based on personal feelings," will help make the tax collection and payment process more open and transparent.

Electronic invoices and automated revenue declarations not only reduce the risk of legal violations but also open up opportunities for household businesses to access bank credit, sign commercial contracts, and gradually transform into formal enterprises. In reality, individuals who adapt early will have a greater advantage in an increasingly professionalized business environment.

Furthermore, stable budget revenue from transparent tax collection will strengthen the State's resources for reinvestment in the people through social welfare programs, improving healthcare and education infrastructure, and promoting digital transformation. Citizens have the right to expect a higher quality public service system, while the State also has the capacity to design more effective support policies, instead of the scattered and subjective approaches of the past.

Sharing the same view, Dr. Nguyen Ngoc Tu, a lecturer at Hanoi University of Business and Technology, pointed out that the reason why business households are hesitant about the new policy is the fear of having to declare their true revenue, leading to increased taxes and reduced profits. They also fear losing their competitive advantage if competitors evade taxes, while they themselves lack knowledge of technology and law, and are confused about electronic invoices and sales software.

In reality, the majority of businesses currently lack a proper accounting system, are unfamiliar with tax laws, and are not accustomed to using electronic invoices. If mandatory declarations are required without practical support solutions, it could lead to a reduction in operations or the emergence of covert evasion tactics. To avoid this situation, Mr. Tú proposed a comprehensive support package, including: exemption from personal income tax for the first 1-2 years, a 50% reduction in value-added tax, provision of simple and user-friendly accounting software, and exemption from penalties for initial invoice errors due to operational mistakes.

Besides tax procedures, related legal regulations are a major concern for business households when transitioning to formal declaration. Without a clear and transparent legal framework, the risk of business households being unfairly penalized for initial mistakes, technical errors, or unintentional errors is unavoidable.

Many other experts also believe that tax reform is a correct and necessary step towards a transparent, fair, and sustainable digital economy, contributing to increased budget revenue. However, administrative reform cannot stop at mere administrative orders. When policies change too quickly, without dialogue and practical support, the consequences are not only a decline in trust but also the risk of many businesses silently withdrawing.

THUY LINH

Source: https://nhandan.vn/co-hoi-cho-ai-post888086.html