Business households worry about complexity and increased costs
According to the General Statistics Office ( Ministry of Finance ), by the end of 2024, the country will have 3.6 million business households under tax management, contributing VND 25,953 billion to the state budget. Of these, nearly 2 million households are applying the lump-sum tax method.
Currently, the average monthly tax these businesses have to pay is only about 700,000 VND per month.
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| Business households with revenue of over 1 billion VND per year in some industries such as food and beverage, hotels, retail, passenger transport, beauty, entertainment... will stop paying lump-sum tax from June 1. Photo: Dinh Huy |
However, according to Decree 70/2025/ND-CP of the Government , from June 1, 2025, business households with revenue of over 1 billion VND per year in some industries such as: Food and beverage, hotel, retail, passenger transport, beauty, entertainment... will have to use electronic invoices generated from cash registers, connecting data with tax authorities.
This type of invoice is created directly at the point of sale (cashier counter), through a cash register with electronic data connection to the tax authority. This means that the tax authority will know the actual revenue of these business households and individuals. From there, the revenue of these business households and individuals will be re-determined and may be adjusted, instead of the "fixed rate" currently applied.
Accordingly, it is expected that about 37,000 households and business individuals who are paying taxes in the form of lump sums will have to switch to using electronic invoices. This regulation is expected to help make tax management more transparent for both tax authorities and households and business individuals.
However, when talking to reporters of the Industry and Trade Newspaper about the change in tax calculation regulations for businesses with revenue of over 1 billion VND per year, some businesses said they did not know the information. Typically, Ms. Nguyen Thu Huyen - owner of the Huyen Beo noodle shop on Tran Cung street, Bac Tu Liem district ( Hanoi ) - said: "I do not know and do not care much about this regulation, because the restaurant's revenue in a year is still far from 1 billion VND".
Some other businesses believe that this regulation will cause complications and may increase the costs of their businesses. Specifically, Ms. Nguyen Thanh Huong - a spa owner in Nam Tu Liem District (Hanoi) - expressed that previously her business only had to pay 700,000 VND per month.
“But if we follow this new regulation, we don’t know how much we have to pay each month, not to mention having to use electronic invoices generated from cash registers and connecting data with tax authorities, which can be complicated to use and affect the business operations of the facility,” Ms. Nguyen Thanh Huong informed.
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| Passenger transport businesses with revenue of over 1 billion VND/year also switched from lump-sum tax to using electronic invoices generated from cash registers, connecting data with tax authorities. Illustrative photo |
Increase transparency and fairness in tax administration
Discussing the issue of eliminating the lump-sum tax for business households with revenue of over 1 billion VND/year, Mr. Mai Son, Deputy Director of the Tax Department - Ministry of Finance, said: In recent years, the lump-sum tax has been applied as a support solution, suitable for management conditions and compliance capacity of business households.
However, in the context of an increasingly developing economy, with increasing demands for transparency, fairness and modern management, the lump-sum tax form has revealed some limitations, and has not yet provided the necessary motivation for households to develop their production and business scale.
“The elimination of the lump-sum tax is a revolutionary turning point in tax management for business households. The transition from lump-sum to declaration is not only a change in tax calculation methods, but also a fundamental change in management thinking, in the way tax authorities accompany taxpayers,” Mr. Mai Son affirmed.
According to Mr. Mai Son, the elimination of lump-sum tax for business households has many important implications for private economic development as well as state management, helping to increase transparency and fairness in tax management.
The abolition of lump-sum tax and the shift to self-declaration and tax payment based on actual revenue also helps to accurately reflect business capacity and ensure the principle in the Tax Administration Law of “taxpayers self-declaring, self-paying, and self-responsible”; encouraging the participation and sense of responsibility of taxpayers to the community and the country through tax payment based on business results. At the same time, tax authorities also have more accurate information about economic activities for effective management.
Regarding the concerns of business households about difficulties when switching from lump-sum tax to using electronic invoices, a representative of the Tax Department said: When business households self-declare on a digital platform, tax authorities can provide maximum support through simple electronic tax declaration and payment applications.
In addition, switching from lump-sum tax to electronic invoices also helps prevent fraud and tax losses more effectively and creates a healthy competitive environment among economic sectors, because all businesses must comply with tax obligations in the same transparent manner.
Talking to reporters of the Industry and Trade Newspaper regarding the transition of business households from lump-sum tax to digital declaration, economic expert, Dr. Nguyen Quoc Viet, University of Economics (Vietnam National University, Hanoi) pointed out: Although business households will face difficulties at first, in the long run, the conversion will bring practical benefits to business households and create transparency in tax management. Create a level playing field for economic sectors to participate in business.
| According to experts, the elimination of lump-sum tax contributes to modernizing the tax system and improving management efficiency. This is a step in line with the current trend of digital transformation and electronic tax management. |
Source: https://congthuong.vn/dung-thue-khoan-san-choi-cong-bang-cho-doanh-nghiep-390011.html
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