Accompany and support business households to confidently switch from lump-sum tax to declaration

After receiving answers and support from the tax authorities regarding issues related to the regulation of abolishing lump-sum tax and paying tax by declaration method, many business households in Hanoi have agreed to apply. Among them, a number of business households with a fairly large scale said they will learn and consider converting to enterprises.

Taxpayers are supported by tax officials in the conversion work.

Confused because of not understanding the new regulations

According to Resolution No. 198/2025/QH15 of the 15th National Assembly, from January 1, 2026, business households and business individuals will not apply the lump-sum tax payment method, but will pay taxes according to the law on tax administration. To implement this policy, the Ministry of Finance issued Decision No. 3389/QD-BTC in 2025 approving the Project on converting the tax management model and method for business households when eliminating lump-sum tax. Accordingly, from January 1, 2026, business households will officially switch from the lump-sum tax method to the method of declaring and paying taxes themselves.

The transition from lump-sum tax payment to tax payment by declaration method (by revenue) has caused many households and individuals to be concerned. Some households and individuals doing business think that lump-sum tax payment procedures are quite simple, is it more complicated to apply the new method? In addition, how to apply electronic invoices with tax authority codes? Although these concerns have been propagated and guided by tax authorities for many months, many households and individuals doing business still do not understand this new regulation.

Mr. Nguyen Truong, a ham maker in Hanoi, was very concerned, saying that his family got input materials from a facility that did not have an invoice. This means that his family did not have an input invoice. How would tax be declared in this case? Or another case is that of Ms. Giang Oanh, the owner of a beauty spa in Dong Da ward. Ms. Oanh said that her business has a revenue of about 300 million VND/year, with high costs for premises, management and operation costs, staff costs, etc., so paying taxes by the declaration method will be difficult.

Sharing the same sentiment, many households and individuals doing business are concerned about the issue of inventory from the previous year without invoices. When the cash register is initialized, will this inventory be recorded or not? Mr. Nguyen Thinh, a furniture business at HUD Son Tay, said that his business has a revenue of over 200 million VND/year to under 3 billion VND/year (in group 2). Mr. Thinh wondered whether it is mandatory to apply electronic invoices with codes in this case.

However, besides the households and individuals who are still concerned about the new regulations, there are also many households and individuals who, after learning on their own or receiving advice and support from the tax authorities, have understood and want to convert to enterprises. Ms. Do Thi Xuan Loan, a business household in Hanoi, said that she wants to convert from a household business to an enterprise and is interested in tax policy incentives when converting.

“Support to accompany” is the prerequisite criterion that Hanoi Tax Department deploys throughout the system to help small traders feel secure in their conversion.

Support and accompany businesses to feel secure

In response to concerns of business households and individuals, the Tax Department has organized many programs to support and accompany business households and individuals to feel secure in production and business. At Hanoi Tax Department, Mr. Vu Manh Cuong - Deputy Director of the Tax Department and Head of Hanoi Tax Department said that immediately after receiving instructions from the Ministry of Finance and the Tax Department, Hanoi Tax Department proactively advised the City People's Committee to issue a decision to establish a Steering Committee to implement the conversion of tax management models and methods for business households when eliminating lump-sum tax; advised the City People's Committee to issue official dispatches to direct departments, branches and People's Committees of wards and communes.

Previously, Hanoi Tax also signed the Regulation on coordination and implementation of key tasks in tax management between Hanoi Tax and 126 People's Committees of communes and wards. On that basis, Hanoi Tax issued a Plan to implement solutions to support business households with the spirit of "6 clear": clear people, clear work, clear time, clear responsibility, clear products, clear authority, ensuring synchronization and smoothness from the city to the grassroots levels.

Regarding the implementation of electronic invoices generated from cash registers, although implemented in a short time, this new regulation has been implemented resolutely, synchronously and with focus and key points by Hanoi Tax Department.

In addition to organizing seminars to introduce technology solutions and connecting with solution providers, tax officers also closely follow each locality, providing guidance, support, advice, and answering questions when using. In parallel, many comprehensive digital transformation and support campaigns have been launched such as: "45 days and nights of digital transformation", "90 days of data cleaning" to help synchronize information, creating the premise for "60 peak days of conversion from lump-sum tax to declaration" being deployed throughout the city.

As a result, up to now, 14,049 households and individuals have used electronic invoices generated from cash registers, of which 9,087 households and individuals have voluntarily registered to use them, not being required to do so; over 85% of taxpayers have installed and used the eTax Mobile application, serving the purpose of electronic tax declaration and payment and data connection with tax authorities. These results demonstrate the high determination and continuous efforts of the Tax sector's staff and civil servants, contributing to creating a solid foundation for transforming the modern, transparent and fair tax management model.

Mr. Nguyen Tien Minh - Deputy Head of Hanoi Tax Department said that the conversion from the lump sum method to the declaration method is not "adding procedures", but changing the approach: placing trust in taxpayers to self-declare and self-pay according to actual revenue, while the tax authority focuses on supporting - authenticating - ensuring fairness through electronic data.

“With the concerns of the people, Hanoi Tax Department has grasped the information and has directed the working groups of the local Tax Department to deploy and resolve specific problems. In addition, in the first weeks of the 60-day campaign to support households and individuals in converting the tax management model to declaration, tax authorities at all levels have gone to the locality to propagate and provide specific "hand-holding" instructions so that people can feel secure in the conversion." - Deputy Head of Hanoi Tax Department shared.

When transparency and fairness become the norm, businesses will confidently expand cooperation and integration, and revenue will increase naturally. The transformation of the management model from lump-sum tax to declaration is not only a change in tax calculation methods, but also a step forward in digital transformation, publicity, transparency, towards a modern, fair and convenient tax administration for taxpayers.

Note when business households switch from lump-sum tax to tax declaration

Firstly, regarding the accounting system, the tax authority will “transform” handwritten notebooks into simple, easy-to-use electronic accounting books. Basic purchase invoices must have documents; goods directly produced and grown by individuals will be listed instead of invoices.

Second, regarding invoices, the tax authority encourages businesses to use input invoices. Issuing input invoices to record costs and serve as a basis to prove the validity of the origin of goods and services, clarify revenue, costs and prove the origin of goods, which is important not only for tax but also to protect consumers.

Third, inventory and invoices, small businesses often have little inventory, while large businesses are used to using documents. The tax authority is also studying the possibility of merging individual invoices at the end of the day, and the cost of printing invoices is currently very low thanks to the electronic POS system.

Fourth, for special items such as vegetables and fruits with short shelf life, the tax industry will conduct further surveys to ensure that the regulation "pay tax only when there is profit" accurately reflects business reality.

Source: https://baolamdong.vn/dong-hanh-ho-tro-de-ho-kinh-doanh-yen-tam-chuyen-tu-thue-khoan-sang-ke-khai-405172.html