Business household "upgraded": Professional business opportunity

(GLO)- The province currently has more than 35,000 business households in operation, many of which are eligible to convert into enterprises. Converting the model into an enterprise will operate more systematically and professionally.

Operating under a stable household business model for more than 5 years, but Ms. Pham Thi Thu Hoa (Group 1, Dien Hong Ward, Pleiku City) still has no need to establish a business. According to Ms. Hoa, if she converts into a business, she will have to hire more staff to do accounting, pay social insurance for employees, incur new taxes... causing operating costs to increase. "I run a small-scale family business, so the operation is quite simple. For a long time, I have directly managed the import of goods, calculated books and documents, sales; hired staff for delivery, and paid taxes... Therefore, I do not see the need to change the operating model" - Ms. Hoa shared.

Business households must issue electronic invoices when selling goods directly to consumers from June 1, 2025. Photo: Ha Duy

Similarly, Ms. Ngo Thi Lan (Group 8, Yen Do Ward, Pleiku City) also commented: “My relative opened a company. The company management model often encounters difficulties related to taxes, business administration, etc. Not everyone who owns a business has the qualifications, knowledge, and experience to manage and operate. Meanwhile, operating under the household business model is much simpler, just buying and selling in the traditional way is enough.”

This mentality is completely understandable when the lump-sum tax rate for business households is more beneficial because it is often lower than the actual revenue. The operating model does not have a clear difference if the business household maintains its operations as before. Gia Lai currently has more than 35,000 operating business households, of which many are eligible to convert into enterprises, but in reality, the number of enterprises developing each year is mainly newly established, while the number of enterprises developing from business households converting to business models is insignificant. The main reason is that business households manage in a separate way, paying lump-sum tax instead of paying taxes according to other types such as value added tax, corporate income tax, etc.

Therefore, when the regulation that business households must issue electronic invoices when selling directly to consumers from June 1, 2025 was officially applied, many business households asked customers to pay in cash instead of by bank transfer to "hide" sales and reduce the amount of tax to be paid. The tax sector is well aware of these issues and has increased inspection and supervision. However, that is only a "top-of-the-line" solution. The most important thing is to find a way for business households to get greater benefits from selling, issuing invoices, and calculating taxes based on revenue so that they can voluntarily fulfill their obligations instead of finding ways to cope; at the same time, large-scale business households should also consider converting their model into enterprises.

According to Mr. Dinh Huu Hoa - Deputy Director of the Department of Finance, the shift from lump-sum tax to tax payment based on revenue or the conversion of the business model into an enterprise will help business households to be transparent about their income and expenditure. When transparent, there will be more opportunities to access bank credit, access incentive packages, thereby having more opportunities to expand production activities. Issuing direct sales invoices will also help to clarify the origin of raw materials, thereby limiting smuggled goods, counterfeit goods, poor quality goods, etc.

According to economic experts, to achieve the goal of converting business households into enterprises, the most important thing is to create an open and transparent business environment, ensuring equality for all types of businesses and providing practical and effective support for households participating in the conversion. The Law on Support for Small and Medium Enterprises in 2017 also added many support policies for the conversion from business households into enterprises such as: exemption of business registration fees and fees for providing business information for the first time; exemption of appraisal fees, fees, and fees for granting business licenses for the first time for conditional business lines and occupations...

The tax sector has stepped up propaganda for business households about the need to issue electronic invoices when selling directly to consumers. Photo: SC

Resolution 68-NQ/TW of the Politburo issued on May 4, 2025 on private economic development, includes the content of encouraging and creating conditions for business households to transform into enterprise models, eliminating the form of lump-sum tax for business households by 2026 at the latest. This is a necessary preparation step for business households to develop into enterprises. Talking about this, Mr. Tran Quang Thanh - Deputy Head of the Tax Department of Region XIV - said: The Department promotes propaganda to raise awareness and responsibility of taxpayers in fulfilling tax obligations, using electronic invoices, contributing to building a healthy and sustainable business environment. Along with that, it is necessary to regularly urge, inspect and supervise the registration, management and use of electronic invoices to promptly prevent and handle violations related to invoices.

Source: https://baogialai.com.vn/ho-kinh-doanh-len-doi-co-hoi-kinh-doanh-chuyen-nghiep-post329849.html