Benefits for business households when switching from lump-sum tax to declaration

VTV.vn - From January 1, 2026, business households will change their tax management model, switching from lump-sum tax to declaration.

Difference between lump sum and declaration tax methods

From the beginning of November until the end of this year, the Tax sector will launch a 60-day peak campaign to support business households in converting from lump-sum tax to declaration. The program aims to help households get used to self-declaring and paying taxes, preparing for the official application phase from January 1, 2026 according to the provisions of the Law on Tax Administration. Converting from lump-sum tax to declaration is an important step to modernize tax management and promote more transparent business households.

If a business household is paying tax by the lump sum method, it is usually a small business household. The lump sum tax does not need to be declared periodically, accounting books do not need to be kept, and when it is necessary to issue invoices, the business household can buy them one time from the tax authority. The tax amount to be paid has been fixed, not depending on actual revenue.

In contrast, the declaration method is applied to large-scale households with high revenue, which must declare taxes monthly or quarterly, keep accounting books and keep full documents. Electronic invoices are used for all transactions and the amount of tax payable is calculated based on the percentage of actual revenue, increasing or decreasing according to the level of business.

Thus, although the lump-sum tax is simple, the declaration method helps business households to be more transparent, easily access loans, and expand their business. Using electronic invoices helps transactions to be quick and the tax payable is calculated based on actual revenue, avoiding the situation where revenue suddenly drops but the tax payable remains unchanged like lump-sum tax.

From the beginning of November until the end of this year, the Tax sector will launch a 60-day peak campaign to support business households in converting from lump-sum tax to declaration.

"Doing it right" is more beneficial than "doing it fast"

The Tax Department has also planned "60 days and nights to accompany and support business households". Lump-sum tax does not require calculating costs and revenue, it is very simple. However, in Hanoi, in recent times, there have been many business households that have proactively switched from lump-sum tax to declaration. After a period of application, they realized that "doing it right" is more beneficial than "doing it quickly".

Ms. Do Thi Bich (Hoang Mai Ward, Hanoi City) switched to tax declaration more than a year ago. Instead of manual recording as before, now the electronic invoice software helps her clearly track cash flow, know the exact profit and loss, instead of "estimating" as before. And the good news is that her customers are increasing day by day.

"Cost and revenue management is clear and transparent. Customers also trust the store more, because when they buy with invoices and documents, they always feel more secure," Ms. Bich shared.

As for Ms. Pham Thi Quyen (Hoang Liet Ward, Hanoi City), she has just switched to declaration for a few months. The biggest benefit she feels is mental comfort. Now her job is just to sell goods, and the software has fully recorded the revenue and taxes.

"The lump sum tax is very bad. If your business is not successful, you still have to pay it. But if you declare, you pay according to your revenue. Especially, it frees your mind, you don't have to worry about whether you are doing the right tax or not," Ms. Quyen shared.

It can be seen that the benefits of switching to tax declaration are quite clear, helping businesses to be transparent and creating conditions for expanding operations. Illustrative photo.

Up to now, in Hanoi, there have been more than 12,000 business households that have converted from lump-sum tax to the declaration method, a number 5 times higher than the same period last year. Notably, the revenue of these households has increased sharply after applying the declaration method, showing the clear effectiveness of making business activities transparent.

Mr. Nguyen Tien Minh - Deputy Head of Hanoi Tax said: "The revenue they declared after using electronic invoices increased by 55%. There are more than 1,200 business households that have converted to enterprises. And if using electronic invoices, they will receive support from banks for loans. In the State's policy, they will receive preferential loan interest rates. If they convert to enterprises, they will also be exempted from taxes for 2 years."

Switching to electronic declaration and use of invoices not only helps businesses become more transparent and professional, but also opens up opportunities to expand their scale and reach large customers and partners, which they could hardly do before when they had to pay lump-sum taxes.

It can be seen that the benefits of switching to tax declaration are quite clear, both helping business households to be transparent and creating conditions for expanding operations. Currently, the Tax sector is implementing the "60-day and night companionship" plan, aiming to support millions of households paying lump-sum taxes across the country to gradually get used to the declaration method, so that the conversion takes place smoothly, effectively and on schedule from the beginning of 2026.

Technology infrastructure ready for millions of households to declare electronically

According to Mr. Luu Nguyen Tri - Deputy Head of Technology, Digital Transformation and Automation Department, the Tax sector has prepared a comprehensive technology infrastructure to serve millions of business households to make electronic declarations from January 1, 2026.

Therefore, in terms of internal technology infrastructure or external communication interfaces between taxpayers and tax authorities, there is always adequate and timely investment to support taxpayers in general and business households in particular in performing their obligations in the best way anytime, anywhere, not just during the period when the lump-sum tax form is abolished.

In preparation for the implementation of electronic tax declaration for business households from January 1, 2026, in the period of 2024-2025, the Tax sector has synchronously upgraded the information technology infrastructure, supplemented processing and storage resources for systems serving taxpayers such as Etax, Electronic Invoice and related applications. At the same time, the Tax sector has also strengthened security solutions, invested in information security equipment and upgraded connection infrastructure, to ensure data security and smooth transmission of information between taxpayers and Tax authorities.

On the electronic invoice portal for taxpayers at https://www.hoadondientu.gdt.gov.vn, the Tax sector has built functions to support the creation of electronic invoices quickly and easily with main functions such as: managing customer lists; managing goods lists; managing invoice symbol lists; managing invoices (creating invoices, creating replacement/adjusted invoices, processing invoices, approving invoices).

Regarding the solution to automatically integrate sales data to reduce manual operations for business households, the Tax Department has worked with organizations providing electronic invoice solutions to propose solution packages to support business households in creating, managing and using electronic invoices such as: directly integrating the sales cash register system with electronic invoice software to automatically issue invoices when transactions arise...

Thus, the functions to support business households in declaring and paying taxes are all available on the tax management information system.

"The cooperation of solution providers and local authorities is a key factor in helping the Tax sector support business households more comprehensively. In the coming time, the Tax sector will continue to research new technology solutions to support and provide better experiences for business households and hopes to always receive the support, cooperation and companionship of taxpayers in the modernization and digital transformation of the sector," Mr. Luu Nguyen Tri emphasized.

As of September 20, 2025, 18,348 business households paying lump-sum tax have converted to paying tax by the declaration method; and from the beginning of the year to the end of August 2025, there were about 2,250 business households converting to the enterprise model and the tax management information system still receives and processes information and data stably, showing that the technology infrastructure capacity of the Tax sector is always ready to respond.

The electronic tax management system is capable of stably serving about 2 million business accounts and 10 million personal accounts, ensuring the ability to expand to receive and serve an additional 1.3 million electronically declaring business households in the coming time.

Source: https://vtv.vn/loi-ich-ho-kinh-doanh-khi-chuyen-tu-thue-khoan-sang-ke-khai-100251105102453842.htm