Many small businesses are closing down and ceasing operations: Why? - Part 2: Lack of invoices, confusion over new tax regulations

In fact, we found that, apart from a number of small traders who sell counterfeit goods and are afraid of being discovered and punished by the authorities, the main reason for this situation is that currently, most small traders do not have input invoices. In addition, small traders are very confused and have not yet adapted to the transition from lump-sum tax to actual revenue calculation, and issuing electronic invoices generated from cash registers that connect data with the authorities.

Flood of goods without invoices

Immediately after the Prime Minister issued Official Dispatch No. 65/CD-TTg dated May 15, 2025, Directive No. 13/CT-TTg dated May 17, 2025 and Official Dispatch No. 72/CD-TTg dated May 24, 2025 on launching a peak period, strengthening the fight to prevent and repel smuggling, trade fraud, counterfeit goods, and infringement of intellectual property rights, the People's Committee of Vinh Tuong district ( Vinh Phuc ) established a steering committee and an interdisciplinary inspection team to combat smuggling, trade fraud, and counterfeit goods. The inspection team discovered and handled a number of business households in Tho Tang town that violated intellectual property, produced fake shampoos and washing powders, sold sausages and foods of unknown origin... "The information spread that there was an interdisciplinary inspection team conducting a general inspection of invoices and the origin of goods. If they did not present all of them, the goods would be confiscated, causing small traders in Tho Tang town to be afraid and close their shops," said Mr. Nguyen Phuong Nam, Vice Chairman of Vinh Tuong District People's Committee.

On June 9, a series of stores on Hang Dao Street (Hoan Kiem, Hanoi ) remained closed, customers who wanted to buy goods had to endure the trouble of "climbing through the fence". Photo: DUC THINH

Similarly in Tho Tang town, not having input invoices, fear of being fined, and having goods confiscated in the context of the authorities strengthening the fight against trade fraud, counterfeit goods, and fake goods are the main reasons why a large number of small traders in localities across the country are forced to choose the solution of "closing down". Ms. Tran Minh Nguyet, a small trader with nearly 10 years of business experience at Son Long Trade Center located in Ninh Hiep market area (Gia Lam, Hanoi) sadly said: "It's not that we want to close, but during this time, the authorities are too "tense", constantly checking. Any item without invoices, full documents, and unknown origin is immediately confiscated and fined. Meanwhile, most of us small traders import goods through unofficial channels or get them from intermediary warehouses, so we don't have invoices." Similarly, Ms. NMH, a jewelry and fashion retailer at Binh Tay Market (District 6, Ho Chi Minh City) shared: “For those who do business in fashion items like me, getting goods from many different small sources is normal, and importing goods from these sources will not have an input invoice. In recent years, doing business at traditional markets has encountered many difficulties due to fierce competition from online sales, supermarkets... Low profits, so I am very afraid of being fined, so I had to close my stall.”

In fact, the situation of trading goods without invoices is very common, which is the reason why small traders close down and stop doing business widely. Typically, in Tho Tang town, we randomly surveyed more than 10 business households and all of them said that a part, even most of the goods being traded do not have input invoices. There are many reasons, from "being used to not taking invoices" to purchasing goods from small sources, craft villages and even importing floating goods, of unknown origin. Mr. Vu Van Ninh, a small trader of agricultural products in Pho Moi area, Tho Tang town said: "I sell beans, peanuts, wood ear mushrooms... Only a part of the goods imported from companies have invoices, but small purchases from farmers cannot get invoices even if they want to." Selling industrial machinery, kitchenware... goods are all imported from companies, but Ms. Vu Thi Thuy, also in the New Town area, has been "used" to not taking invoices for decades. "About 80-90% of my goods do not have input invoices. I do not take invoices to reduce the selling price. Only when customers need it, I contact the company to request an invoice," Ms. Thuy honestly expressed.

Many small traders of agricultural products said that if they import goods in small quantities, they will not be able to get input invoices. In the photo: Agricultural products trading in Tho Tang town (Vinh Tuong, Vinh Phuc). Photo: PHUONG HIEN

"Lie still" and listen to the situation

According to Decree No. 70/2025/ND-CP, from June 1, 2025, business households in certain industries with revenue of VND 1 billion/year or more will not pay taxes in the form of lump sums as before but must issue electronic invoices generated from cash registers connected to data with tax authorities, and pay taxes based on actual revenue. Households that do not comply with regulations will be at risk of being administratively sanctioned.

In addition to the main reason of lack of invoices, Mr. Vu Hong Son, Director of the Department of Industry and Trade of Dien Bien province, pointed out another reason why stores and kiosks are closed is because people are waiting for instructions to complete tax procedures according to the provisions of Decree 70; some business households are afraid of being fined if they have not done so, so they have chosen to temporarily close or operate at a low level to wait and see.

Ms. Vu Thi Hoai Phuong, owner of a dog and cat food and supplies business at 28 Nguyen Thanh Dang, Phuoc Trung Ward, Ba Ria City (Ba Ria-Vung Tau) with an average revenue of 200-300 million VND/month, is required to use electronic invoices generated from cash registers connected to data with tax authorities. “The hasty implementation policy made me confused and frantic, all day I just focused on finding information to fulfill my tax obligations according to regulations. It is not only a matter of how to pay taxes and how much to pay, but I also have to find out which equipment is suitable for the store, which software can be integrated, and issue electronic invoices simply and quickly. In addition, I also have to regularly work with tax authorities as well as consultants to be able to grasp accurate information and implementation procedures,” Ms. Phuong expressed. Like Ms. Phuong, Ms. Nguyen Thi Nhuan, owner of Nhuan Than clothing store at Minh Thu sports area, Ninh Hiep market (Gia Lam, Hanoi) said she encountered many difficulties when implementing the new tax policy. Ms. Nhuan shared: “I have been attached to this market since the 90s of the last century, never seen such difficulties as now. Partly because of the general economic difficulties, but also because there are new policies that are not implemented synchronously, without specific instructions. Old people like me, told to use apps, declare taxes online, are doomed. We understand that this is an inevitable trend in the digital age, small traders need to change to adapt. But the current way of doing things is too sudden, the transition time is not enough, making everyone confused, scared, many people have to close their stores, lie still and listen...”.

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Source: https://www.qdnd.vn/phong-su-dieu-tra/dieu-tra/hang-loat-tieu-thuong-dong-cua-dung-kinh-doanh-vi-sao-bai-2-thieu-hoa-don-lung-tung-truoc-quy-dinh-moi-ve-thue-832001