Removing barriers for household businesses using e-invoices

This is one of the key solutions aimed at modernising tax administration and contributing to the creation of a transparent, healthy, and fair business environment.

According to Government Decree No. 70/2025/ND-CP, from June 1, 2025, household businesses declaring tax using the declaration method, and households or individuals paying presumptive tax with an annual turnover of 1 billion VND or more who directly sell goods and provide services to consumers, are required to issue e-invoices generated from cash registers connected to and transmitting data to the tax authority.

Results from peak month of enforcement

Approximately 37,500 household businesses nationwide must switch to using e-invoices generated from cash registers and declare taxes instead of using the presumptive tax method. According to data from the Tax Department on the implementation of e-invoices generated from cash registers in 2025, as of June 20, a total of 73,700 household and individual businesses nationwide have registered to use such e-invoices, including 45,247 presumptive-tax payers who have voluntarily registered.

This result exceeded the planned target, as some household businesses not subject to the mandatory requirement, but with sufficient IT infrastructure, proactively registered with the tax authority in advance. This helped reduce invoice printing costs and fostered professionalism in business operations.

Deputy Director General of the Tax Department Mai Son said that to implement Decree No. 70/2025/ND-CP, the tax sector had introduced a range of comprehensive solutions. In particular, focus was placed on two key tasks: taxpayer communication and support; and close cooperation with solution providers to develop e-invoice software solutions (integrated with sales management software) that are cost-effective, technically simple, and suited to the scale and capacity of household businesses.

Following the peak implementation month (June 2025), e-invoice service providers responded enthusiastically and committed to supporting the tax sector with various incentive programmes, such as six months of free sales, accounting, and insurance software for first-time registrants; complimentary e-invoice packages; and free consultancy services on tax declaration and the use of software and e-invoice services.

Based on this support, household and individual businesses can choose e-invoice solutions generated from cash registers that suit their business operations.

Proposal to double the taxable revenue threshold

Despite the significant progress, challenges remain in implementing e-invoices for household and individual businesses, affecting the transition from the presumptive tax method towards a full declaration system.

Firstly, in some areas, household businesses temporarily closed due to increased inspections by authorities targeting counterfeit goods and unclear origins just before June 1, 2025. This led to public misunderstanding that the closures were due to the implementation of e-invoices from cash registers by the tax sector.

Furthermore, many household businesses are still hesitant to shift from the presumptive tax method to actual revenue declaration due to concerns about retroactive tax collection if reported revenue rises sharply through invoicing. Some household businesses are also unclear about the procedures for using e-invoices and are concerned about the initial costs for equipment and software. These concerns have led to some avoiding tax by refusing bank transfers or failing to issue complete invoices in an attempt to underreport their revenue.

In addition, the habit of consumers not requesting invoices when purchasing goods or services also hampers the effectiveness of implementing e-invoices from cash registers.

In practice, several consultancy organisations and tax agents have recommended further measures to reduce compliance costs for taxpayers, such as increasing the taxable revenue threshold for household and individual businesses. According to tax expert Dang Thi Binh An, the amended Law on Value-Added Tax stipulates that, from July 1, 2025, household businesses with annual revenue from 200 million VND or more must pay VAT (up from the previous threshold of 100 million VND per year).

In the draft amended Law on Tax Administration submitted to the National Assembly for consideration at its October 2025 session, the Ministry of Finance proposes raising the threshold to 400 million VND per year. However, this is still considered by some to be too low as the revenue is calculated before expenses. Therefore, it is necessary to reconsider a more suitable taxable revenue threshold to encourage household businesses to convert into enterprises and avoid having the newly amended law become outdated upon enforcement.

Responding to questions from National Assembly deputies during the 9th session of the 15th National Assembly, Minister of Finance Nguyen Van Thang affirmed that current tax policies have not changed in a way that increases pressure on taxpayers. During the implementation of Decree No. 70/2025/ND-CP, the tax sector continues its communication and support efforts for household and individual businesses to create e-invoices from cash registers and transition to tax declaration, without yet applying penalties.

Moreover, tax policy remains on track to adjust in the direction of reducing burdens on citizens and small businesses, ensuring accurate and adequate tax collection while promoting the conversion of household businesses into enterprises and contributing to the development of the private economic sector.

Commenting on these issues, Mr. Mai Son shared that the tax authority intends to propose doubling the non-taxable revenue threshold for household businesses; revising personal income tax rates based on revenue scale; and further simplifying tax administrative procedures. These proposals have been compiled based on feedback from experts, consulting associations, and taxpayers with the aim to help resolve the difficulties faced by household and individual businesses in the process of implementing e-invoices.

Regarding the plan to eliminate the presumptive tax method starting in 2026, the Tax Department is actively and urgently reviewing relevant legal provisions to ensure that the tax declaration and payment process for household businesses is simple and convenient while remaining compliant with legal regulations.

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