What is the difference between lump sum tax and declared tax?

VTV.vn - Since November, the Tax sector has implemented 60 peak days to support business households to switch from lump-sum tax to declaration, preparing for new regulations to be applied from January 1, 2026.

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.

Switching from lump-sum tax to declaration is an important step to modernize tax administration and promote more transparent business operations. So what is the difference between the lump-sum tax and declaration methods? And which method is more beneficial for 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.

Source: https://vtv.vn/thue-khoan-va-thue-ke-khai-khac-nhau-the-nao-100251104090359864.htm