Tax Department answers about converting electronic invoices

(Chinhphu.vn) - Recently, many opinions from the business household community have reflected that the conversion to electronic invoices, especially after Decree No. 70/2025/ND-CP was issued, has created financial and procedural pressure. In response to these reflections, the Tax Department has officially spoken out, clarifying current regulations, and at the same time said that there will be support measures in the coming time.

Tax Department answers questions related to electronic invoice conversion

According to the reflection of the Vietnam Banking Association, the implementation of Decree No. 70/2025/ND-CP (amending and supplementing Decree No. 123/2020/ND-CP dated October 19, 2020 of the Government ) still faces many difficulties, especially for small and micro-business households. These are entities with limited financial resources, and now have to simultaneously meet the requirements for declaring and paying value-added tax, corporate income tax, as well as investment costs for equipment and electronic invoice software.

A survey by the Vietnam Chamber of Commerce and Industry (VCCI) of nearly 1,400 business households showed that most of them knew about the new Decree, but their level of understanding was still limited. Many households were still waiting for detailed instructions from local tax authorities to comply with the regulations.

Financial pressure is considered the biggest barrier. Due to low profits, the added cost of software and equipment has seriously affected the operations of many households. Citing survey results, the Banking Association said that up to 63% of households had to reduce their scale, 21% temporarily stopped operations (mainly food and grocery), 11% changed their business type, and 3% closed completely.

This reality shows that if the new policy does not have a roadmap and appropriate support mechanism, it will have a negative impact on the stability of the household business community - which is an important contributor to economic growth and job creation.

Faced with the difficulties of business households, the Vietnam Banking Association has proposed that the Government issue an official guidance document. In particular, it is necessary to affirm that no additional tax will be collected for the period before the contracted household switches from the contracted form to calculating tax based on revenue. In addition, a transition period of at least one year should be established, in which no penalties will be imposed for errors in declaring electronic invoices.

In addition, it is necessary to consider tax exemptions and reductions for the first 1-2 years so that business households can gradually adapt; build a simple, easy-to-implement system of books and documents, suitable for small scale. The implementation also needs a roadmap: priority is given to large households in urban areas, then expanded to small households in rural areas. At the same time, strengthen communication, training and education to raise awareness and skills in using electronic invoices.

Another important point is technical support, such as providing software, free invoices and setting up a helpline in the initial stage. This is considered a practical solution to reduce the burden on business households.

In response to the recommendations, the Tax Department has clarified the current legal regulations. Accordingly, from June 1, 2025, households with annual revenue of VND 1 billion or more, when selling goods or providing services directly to consumers, must issue electronic invoices from cash registers connected to the tax authorities.

Electronic invoice data is available on the tax authority's system, and both sellers and buyers can look it up without having to print out the invoice. Regarding purchase documents, according to Circular 40/2021/TT-BTC, the contracting household is not required to keep them.

Regarding the adjustment of revenue and lump-sum tax rates, the Tax Department cited the provisions of Circular 40/2021/TT-BTC. In case the lump-sum household changes its business scale, they must declare and supplement the tax declaration according to form No. 01/CNKD. If the lump-sum revenue changes by 50% or more, the tax authority will issue a notice of adjustment of the lump-sum tax rate from the time of change in the tax year.

Notably, regarding support for business households, the Tax Department cited Clause 3, Article 12 of Resolution No. 198/2025/QH15 dated May 17, 2025 of the National Assembly. Accordingly, the State allocates funds to provide free digital platforms and shared accounting software for small and micro enterprises, business households and individual businesses.

The Ministry of Finance is currently drafting a Decree guiding its implementation, which includes provisions for free provision of digital platforms and shared accounting software. This is considered an important solution, helping business households save costs, while gradually adapting to a transparent and modern business environment.

TT

Source: https://baochinhphu.vn/cuc-thue-giai-dap-ve-chuyen-doi-hoa-don-dien-tu-102250924190106182.htm