IN HO CHI MINH CITY, COMMENCING ON JUNE 1ST, OVER 13.000 BUSINESS HOUSEHOLDS WILL TRANSITION TO THE UTILIZATION OF ELECTRONIC INVOICES

Effective from June 1, 2025, approximately 13,000 business households in Ho Chi Minh City (“HCMC”) will no longer be subject to the fixed tax assessment method. Instead, this group of households will transition to using electronic invoices generated from cash registers that transmit data to the tax authority, replacing the current fixed tax payment system, in accordance with new regulations in tax administration.

Tax Administration Policy Reform for Business Households

Speaking at the Conference on the Implementation of Government Decree No. 70 and the signing ceremony of an agreement on the deployment of electronic invoices generated from cash registers between the Regional Tax Department II and solution providers on the afternoon of April 21, 2025, Mr. Nguyen Nam Binh stated that the Government is orienting towards reforming the tax policy for business households from the current fixed tax assessment to a self-declaration and self-payment system.

“Government Decree No. 70, recently issued, represents a significant step forward in the modernization of the tax sector, particularly in expanding the application of electronic invoices with tax authority codes generated from cash registers for business households. This is one of the key solutions to enhance tax administration efficiency and create convenience for taxpayers,” Mr. Binh emphasized.

HCMC has approximately 200,000 business households, excluding those engaged in property leasing. Among these, around 13,000 business households with annual revenue of VND 1 billion or more, operating in six designated industry groups as stipulated in Decree 70, are required to use electronic invoices generated from cash registers with electronic data transmission to the tax authority.

Instead of paying fixed taxes periodically as before, these business households will use cash registers to issue electronic invoices upon making sales. Data from these invoices will be transmitted directly to the tax authority. This solution aims to enhance oversight, reduce revenue loss, and accurately reflect the actual revenue of business households.

This applies to business households with annual revenue from VND 1 billion.

According to the tax authority, the applicable subjects include business households with revenue of VND 1 billion per year or more, operating in the following six sectors: goods sales, service provision (including direct sales of goods and services to consumers, such as in commercial centers, supermarkets, retail (excluding automobiles, motorcycles, other motorized vehicles), food and beverage services, restaurants, hotels, passenger transport services, direct support services for road transport, arts, entertainment, cinema operations, and other personal services).

This is part of the implementation roadmap under Decree No. 70/2023/ND-CP, aimed at enhancing transparency and openness in tax administration, while facilitating authorities to more accurately monitor actual business operations.

To support and facilitate business households, the Regional Tax Department II has worked with the HCMC Tax Consultants and Agents Association and prepared digital transformation solutions, cash registers, and electronic invoices generated from cash registers.

Accordingly, these entities have committed to providing all services free of charge to business households for a period of 6 to 12 months. This aims to help business households easily access, familiarize themselves with, and transition to the modern electronic invoice model, and to enable taxpayers to confidently fulfill their tax obligations correctly, promptly and efficiently.

The Regional Tax Department II aims to basically complete the implementation of electronic invoices generated from cash registers for business households in HCMC by May 25th.

Also at the conference, a cooperation agreement was signed between the Regional Tax Department II and suppliers, as well as representatives of the HCMC Tax Consultants and Agents Association.

Mr. Nguyen Ngoc Tinh, Vice Chairman of the HCMC Tax Consultants and Agents Association, stated that the application of electronic invoices generated from cash registers with data connection to the tax authority for business households with revenue of VND 1 billion or more is an inevitable step towards transparentizing transactions and facilitating management. Most importantly, it enhances reputation and creates conditions for future market expansion.

“Business households should not worry. When using tax agent services, they will receive advice in accordance with regulations and support in declaring, preparing invoices, and paying taxes fully. There is no need to worry about procedures or spend time looking up information, avoiding regrettable errors.

Business households can confidently focus on business development without having to struggle with an increasingly modern and complex legal system on their own. Digital transformation is no longer a foreign concept – it is the ‘ticket’ for business households to enter a professional playing field, reach civilized customers, participate in e-commerce platforms, and confidently reach further”, Mr. Tinh emphasized.

Source: Tuoi Tre Online, article “13,000 business households in Ho Chi Minh City will no longer pay presumptive tax from June 1st”, dated April 21, 2025.