From “market bookkeeping” to tax declaration: Reducing risks, increasing transparency

Does not increase tax burden

According to tax administration data, as of October 2025, the country has about 3.83 million business households. And from January 1, 2026, households that are calculating taxes by the lump-sum method will switch to the declaration model or choose to convert to small and medium-sized enterprises with many tax incentives according to current regulations.

Mr. Mai Son, Deputy Director of the Tax Department, said that after abolishing lump-sum tax, the tax industry switched to a business household management model based on revenue thresholds and levels of operational development, including 3 groups.

Firstly, households with revenue of 200 million VND/year or less are exempt from tax and do not use electronic invoices.

Từ “ghi sổ chợ” đến kê khai thuế: Giảm rủi ro, tăng minh bạch - Ảnh 1. — Illustration photo

Second, the group with revenue of over 200 million to 3 billion VND/year will declare taxes quarterly, applying the accounting regime. In particular, households with revenue of over 1 billion VND/year must use electronic invoices with tax authority codes or electronic invoices from cash registers.

Third, groups with revenue of over 3 billion VND/year will apply a more complete accounting regime and declare taxes similar to small businesses.

Statistics show that, among 3.83 million business households, about 1.7 million households (44.4%) with revenue under 200 million VND are exempt from tax; 883,000 households (23%) with revenue from 200 million to 3 billion VND are the main affected group; and 39,000 households (1%) with revenue over 3 billion VND have declared so are less affected.

Từ “ghi sổ chợ” đến kê khai thuế: Giảm rủi ro, tăng minh bạch - Ảnh 2. — Mr. Mai Son, Deputy Director of the Tax Department

Mr. Mai Son emphasized that the goal of the project is not to increase the tax burden, but to create a transparent and fair business environment between business households and enterprises, and at the same time help business households improve their management capacity.

"Compared to the lump-sum tax mechanism, this is a fundamental change in both management and determination of tax obligations. The Ministry of Finance will issue an accounting regime for business households according to each threshold: small households only need to record basic revenue and expenses; larger households apply similar books to micro-enterprises," said Mr. Mai Son.

From “estimate” to transparency

Ms. Do Thi Bich (Hoang Mai ward, Hanoi ) switched to tax declaration more than a year ago. Instead of manually recording as before, now the electronic invoice software has helped her clearly track cash flow, know exactly the profit and loss, no longer "estimate" as before. And the good news is that her customers are increasing day by day.

"Cost and revenue management is very clear and transparent. Customers also trust the store more and the products because when they buy with invoices and documents, customers always trust more," said Ms. Do Thi Bich.

Or like Ms. Pham Thi Quyen (Hoang Liet Ward, Hanoi City) said, without waiting for January 1, 2026, she switched to the declaration form 2 years ago. "When there was a decree on electronic invoices, I recognized that it was necessary to make data transparent," Ms. Quyen said. Talking about the obstacles of switching from lump-sum tax to tax declaration, Ms. Quyen said that one of the biggest reasons was from habit: "Before, there was no need to calculate anything, it was like keeping a market book. When switching to tax declaration, it means doing business with discipline. The second obstacle is that some people are afraid that transparency means having to pay more taxes," Ms. Quyen said.

Từ “ghi sổ chợ” đến kê khai thuế: Giảm rủi ro, tăng minh bạch - Ảnh 3. — It is estimated that in Hanoi, more than 12,000 business households have switched from lump-sum tax to declaration method, this number is 5 times higher than the same period last year. (Illustration photo)

It is estimated that in Hanoi, more than 12,000 business households have switched from lump-sum tax to the declaration method, a figure 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.

According to the assessment, switching to tax payment by declaration method helps business households operate more transparently and professionally. Business households will make monthly or quarterly tax declarations based on clear accounting books, invoices and documents. At the same time, using electronic invoices when switching to the declaration method also brings many benefits, such as helping to increase credibility with customers.

Switching to tax declaration also helps limit the risk of being taxed. Business households are proactive in paying taxes when they can self-declare and self-determine the amount of tax payable, without being affected by the previous year's revenue and the lump sum determined by the tax authority.

Having a complete accounting system helps businesses easily demonstrate their revenue, expenses and profits clearly to banks or partners. This makes the process of borrowing capital or mobilizing additional investment sources easier.

Switching to the method of declaring revenue, using invoices, managing cash flow through accounts... is also a form of creating positive pressure for business households to upgrade their management capacity, professionalize their operations, and move towards converting into formal enterprises...

Eliminating lump-sum tax is not only a change in the way of calculating tax, but also a shift in management thinking, from experience to data, from manual to transparent and modern. That is the greatest meaning of the campaign "60 days and nights accompanying business households to eliminate lump-sum tax".

"Hand-holding and guidance"

In addition to the benefits, Ms. Nguyen Thi Cuc, President of the Vietnam Tax Consulting Association, said that many business households want to comply with tax obligations, but are worried about being charged additional taxes when their declared revenue is higher than the previous fixed amount or encountering problems in handling inventory and implementing electronic invoices. According to Ms. Cuc, these problems need to be resolved soon to create peace of mind for taxpayers.

To support the conversion of business households more easily and conveniently, the Tax Department is implementing the plan "60 peak days of converting the model from lump-sum tax to declaration for business households".

With the implementation period from November 1 to December 30 this year, the plan will focus on implementation in areas with many contract households such as traditional markets, commercial streets, areas with many accommodation businesses...

Từ “ghi sổ chợ” đến kê khai thuế: Giảm rủi ro, tăng minh bạch - Ảnh 4. — To support the conversion of business households more easily and conveniently, the Tax Department is implementing the plan "60 peak days of converting the model from lump-sum tax to declaration for business households".

The Tax Department said it will deploy direct and online support programs and coordinate with local authorities, organize programs, mobile support points... to support business households in converting, implementing the motto of "holding hands and showing work" and answering questions directly. In particular, the Tax sector strives to ensure 100% of business households' problems are resolved.

In November 2025, the tax authority will complete and upgrade the eTax Mobile application, and build an Experience Portal to support businesses in declaring and paying taxes in a new way; integrate the AI Chatbot system so that taxpayers can automatically look up their tax obligations.

“The Tax Department is also coordinating with technology solution providers to provide software and electronic invoices for free or at preferential prices, and support installation and training on usage… with the goal of not leaving any household behind, creating the most favorable conditions for business households to develop sustainably and comply with the law confidently and proactively,” emphasized Mr. Mai Son - Deputy Director of the Tax Department.

During nearly four decades of national renovation, the individual business household sector has become one of the important pillars of the Vietnamese economy , contributing to job creation, livelihood maintenance and promoting commercial vitality in every locality.

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