Opportunities for business households to grow - Part 1: Boost from new tax policy

HNN - Converting household businesses (HKD) into enterprises is not only a matter of promoting economic development according to the orientation of Resolution 68-NQ/TW, dated May 4, 2025 of the Politburo on private economic development, but also an opportunity for HKD to affirm its position. And that opportunity is even more open when there is support from State policies.

The new tax policy puts HKD under a lot of pressure, but if they know how to take advantage of the policies, this is the golden time for HKD to invest, expand and gradually enter the "big playground".

Instructions for business households to use cash registers to connect data with tax authorities

Tax transparency

On June 1, 2025, HKD officially entered a "new threshold" in fulfilling tax obligations. According to the provisions of Decree 70/2025/ND-CP amending and supplementing Decree 123/2020/ND-CP regulating invoices and documents, households with revenue of 1 billion VND/year or more will no longer apply the lump-sum tax method as before but must switch to the form of tax declaration. At the same time, HKD, enterprises (DN) operating in selling goods, providing services directly to consumers; food and beverage; restaurants; hotels;... will have to use electronic invoices generated from cash registers connected to transfer electronic data to tax authorities (also known as electronic invoices generated from cash registers).

To use electronic invoices generated from cash registers, businesses need to meet the conditions of having an internet connection and a computer or smartphone, iPad... At the same time, businesses must also register to use electronic invoices generated from cash registers with the tax authority and be accepted by the tax authority. For new registration or registration to change information, businesses must go through providers of electronic invoice solutions generated from cash registers that have been announced by the Tax Department as qualified. In the area, the units providing this solution can be named as: Viettel, VNPT, MISA ...

Currently, in the city, there are 556 households applying for electronic invoices generated from cash registers. Particularly at Tax Department 1 of Hue city, there are a total of 324 households applying for electronic invoices generated from cash registers and by the end of June, 224 households had applied for electronic invoices generated from cash registers.

Use electronic invoices generated from cash registers

In addition, Resolution 198 of the National Assembly passed on May 17, 2025 on a number of special mechanisms and policies for private economic development also clearly states: "Business households and business individuals shall not apply the lump-sum tax method from January 1, 2026. Business households and business individuals shall pay taxes according to the law on tax administration". Accordingly, business households will no longer apply the lump-sum tax payment method, without declaration, without invoices, without software, but must declare taxes and issue electronic invoices with tax authority codes.

According to Mr. Tran Minh Duc, Director of Hong Duc Center for Training and Consulting on Finance - Accounting - Tax, HKD will have to comply with higher requirements on tax law compliance. They are forced to be more transparent in their business operations, from recording revenue and expenses to fulfilling tax obligations. This may increase compliance costs in the short term, but in the long term it will help them operate more professionally and have easier access to capital sources and support programs.

Still confused

At present, newly implemented tax policies and those that will be implemented from January 1, 2026 are causing confusion for many businesses.

Ms. Nguyen Thi Nhung, the owner of a hardware store, shared, “I am not familiar with technology and have no information, so when I heard that HKD would soon have to declare taxes and use electronic invoices generated from cash registers, I was quite worried. I don’t even know how to use many basic functions on my smartphone, and I have to ask my children and grandchildren to do anything. Now, they are asking me to open the software, enter the buyer’s information, sign and print invoices… I really don’t know where to start. Not to mention, up until now, our business activities have mainly been based on labor. Now, if we apply tax declaration, we don’t know how to account for costs such as: labor, premises, selling price, or whether we need to hire an accountant to make the declaration or not. We have never declared or stored documents before, so we are very afraid that if we do not follow the correct procedures, we will be punished.”

Another problem that many businesses worry about when applying tax declaration and electronic invoices generated from cash registers is the input of products. Specifically, the business items of some households are imported from farmers and fishermen, so there will be no input invoices; or the products are inventory without input invoices, not declared before, how will they be processed properly?

Viettel staff guide business households to issue invoices

Mr. Nguyen Manh Hung, Deputy Head of the Legal and Tax Estimation Department of Hue City, shared that the implementation of electronic invoices generated from cash registers or the conversion from lump-sum tax to tax declaration for business households is an important step in modernizing tax management. However, this process is still facing certain difficulties, especially for small-scale business households. In particular, the biggest difficulty is the awareness and business habits of business households. Many households are still not fully aware of the long-term benefits of using electronic invoices, are still afraid of change, or are not familiar with using technology in sales and tax management activities. The cost of investing in equipment and software is also a barrier, especially for small-scale households with little capital. Equipping cash registers, invoice printers, and software to connect data with tax authorities can cause initial financial pressure. Technical infrastructure in some areas, especially remote areas, is not yet guaranteed, making it difficult to deploy electronic data connection with tax authorities...

Faced with these difficulties, the tax authority has been implementing many synchronous support solutions such as: Providing free software and user manuals for businesses in need, helping to reduce initial implementation costs. Coordinating with intermediary organizations and enterprises providing technology solutions to offer low-cost cash register packages, suitable for each business model. Organizing training and direct and indirect propaganda, especially at markets and traditional business streets so that businesses clearly understand the benefits and receive specific practical instructions. At the same time, gradually implementing a flexible conversion roadmap, not applying rigidly but encouraging businesses to proactively register, thereby creating consensus in the community.

Mr. Tran Huu Binh, owner of a pet food and accessories store, is concerned that when HKD applies tax declaration, the operational gap between HKD and enterprises will not be too far. Many people advise me to register to establish an enterprise to take advantage of support policies. However, I am still worried, will converting to an enterprise increase the burden of costs, procedures and tax obligations?

Converting to an enterprise or maintaining the business household model is not only a question for Mr. Binh, but also for many other business households today. When the requirements for declaration, reporting, and invoices of business households become similar to those of enterprises, the "simple" advantage of the business household model is no longer much. This is the motivation for business households to consider converting to an enterprise if they want to develop sustainably, expand their scale, and increase their competitiveness. At the same time, the State currently has many support policies on taxes, credits, and administrative procedures... If these advantages can be taken advantage of, business households can convert to an enterprise, and then the opportunity to expand production, business, and develop will not be too far away.

(To be continued)

Article and photos: Hoang Loan

Source: https://huengaynay.vn/kinh-te/co-hoi-de-ho-kinh-doanh-lon-manh-bai-1-cu-hich-tu-chinh-sach-thue-moi-155543.html