Individual business households: A "link" with many challenges in the journey to improve tax compliance

That is the noteworthy information at the Workshop "Promoting voluntary compliance and full tax contribution - building a powerful era" organized by Lao Dong Newspaper in coordination with the Tax Department ( Ministry of Finance ) and VCCI on the afternoon of October 23.

Individual business households still face many obstacles in tax declaration.

According to the Tax Department, in the first 9 months of 2025, more than 18,500 business households paying lump-sum tax have switched to the declaration method, nearly 2,530 households have converted to the enterprise model, and 98% of declaring households have made electronic tax declarations and payments. Over 133,000 households have registered to use electronic invoices, an important step in preparation for the roadmap to eliminate lump-sum tax from January 1, 2026.

The above figures show positive changes, but to make this process sustainable, there are still many difficulties. Feedback from the grassroots shows that the individual business household sector, especially in the fields of food, services and online business, is still the group facing the most challenges in improving voluntary compliance.

Ms. Bui Thi Trang, Director of Retail Solutions, MISA Joint Stock Company. Photo: PV

Most business households are elderly, small businesses, have little habit of keeping records, and are afraid of administrative procedures, especially electronic procedures. Many people worry that revenue transparency means their entire operations are "seen" and they are easily inspected.

Not only that, the habit of "not taking invoices" also makes business households not feel motivated to issue invoices according to regulations. In addition, there is still a small number of people who deliberately violate the law, such as false declaration, tax evasion, buying and selling invoices or colluding in fraud.

Drive voluntary compliance through digital transformation and risk management

Mr. Phan Duc Hieu, Member of the National Assembly's Economic and Financial Committee. Photo: PV

Experts at the workshop commented that the key direction the tax industry needs to aim for is to perfect transparent policies, simplify and modernize tax management.

Mr. Mac Quoc Anh, member of the Central Committee of the Vietnam Fatherland Front, pointed out three types of costs that small businesses are paying, including mental costs (fear of violating regulations), opportunity costs (waiting time and lost cash flow) and information costs (inconsistency in understanding and guidance between agencies).

A survey by the Hanoi Association of Small and Medium Enterprises shows that more than 65% of informal business households admit that they “do not have enough knowledge to declare correctly”. Meanwhile, 90% of households converting to enterprises admit that “fear of violating tax regulations” is the biggest barrier. Vietnam currently has an average tax compliance cost of 10-15 million VND per year for each small business, including the cost of hiring support services. From the above reality, Mr. Mac Quoc Anh believes that it is necessary to shift from “management - control” to “accompanying - serving” in tax management.

Agreeing, Mr. Phan Duc Hieu, member of the National Assembly's Economic and Financial Committee, also said that to improve tax compliance, policies must be clear and procedures must be simple; management must shift from process to goal. In particular, digital transformation requires a change in management thinking; public authorities need to proactively support people; there needs to be a mechanism to encourage people with a good compliance history, clearly distinguishing them from violators to arouse self-awareness.

Meanwhile, Ms. Bui Thi Trang, Director of Retail Solutions, MISA Joint Stock Company, said that technology is the key to helping businesses comply with taxes more easily.

“It is important for businesses to understand what they need to do, how easy it is to do, and see the benefits of doing it right. At the same time, data connectivity and automation help businesses reduce the risk of errors, avoid forgetting tax obligations, and feel that compliance becomes easier,” Ms. Trang shared.

Mr. Noguchi Daisuke, Chief Advisor of JICA Tax Project. Photo: PV

Citing experience from Japan, Mr. Noguchi Daisuke, Chief Advisor of the JICA Tax Project (Japan), said that “trust is the decisive factor in maintaining voluntary compliance”. Japan has been successful thanks to the combination of tax education, transparency of procedures and the development of a network of consulting agents to support taxpayers.

He believes that Vietnam is on the right track with tools such as electronic invoices and e-Tax Mobile, but needs more support for small businesses, helping them not lose confidence when they encounter problems. That is also the foundation for Vietnam to move closer to a modern, transparent and fair tax system.

Mr. Bui Ngoc Tuan, Deputy General Director of Tax & Legal Consulting Services, Deloitte Vietnam: The transition of more than 18,000 business households to tax declaration in a short time shows the spirit of companionship and readiness to change of the individual economic sector. But for that change to truly spread, it needs sustained support from management agencies, consulting organizations and technology enterprises. The problem is not only tightening management, but more importantly, building trust, creating a fair environment so that those who comply clearly see the benefits, and violators cannot escape. When business households feel that declaring, issuing invoices and keeping books is easy and fair, voluntary compliance will become a habit, not a mandatory obligation.

Mr. Mai Son, Deputy Director of the Tax Department, Ministry of Finance: The tax industry is strongly shifting to "people know - understand - agree" with tax policy, because if they only speak with slogans, they will not be able to understand. The tax industry has now gone through 4 major reform stages, moving towards digital data-based management. Accordingly, the tax data system is being linked with banks, insurance, customs, industry and trade, and natural resources and environment to compare, suggest declarations, reduce errors and compliance costs; apply blockchain, artificial intelligence (AI) in the new generation management system, aiming to be deployed from 2026.

The goal is to use big data to analyze risks, detect fraud and support taxpayers more proactively. Strive to reduce administrative costs by 44%, higher than the general requirement of 30%. This is both a commitment and a desire to build a friendly, transparent and effective tax environment, contributing positively to national development and ensuring social security.

Source: https://hanoimoi.vn/ho-kinh-doanh-ca-the-mat-xich-nhieu-thach-thuc-trong-hanh-trinh-nang-cao-tuan-thu-thue-720680.html