As the presumptive tax mechanism gradually narrowed, business households entered the stage of tax management based on actual revenue and transaction data. The 2025 Law on Tax Administration focuses on transparency and consistency between invoices, declarations and cash flow, instead of the relatively fixed method as before. Along with that, the regulations on sanctioning administrative violations in the field of tax and invoices are also redesigned in the direction of stratification by act and number of violations.
An important change is that the fine level is no longer "uniform", but directly linked to specific errors and the level of repetition. This makes many business households clearly feel greater compliance pressure, especially in the initial transition phase after abolishing the fixed tax.
Common errors that cause business households to be heavily fined
According to the 2025 Law on Tax Administration, taxpayers are obliged to make full and timely invoices when selling goods and providing services, and at the same time truthfully declare arising revenue. On that basis, Decree 125/2020/ND-CP, amended and supplemented by Decree 310/2025/ND-CP, details the penalty levels for each violation.
Not issuing invoices when transactions arise is the most common error. Previously, for small-scale transactions, this error was often less noticed. However, when revenue is compared with electronic invoice data and cash flow, omission of invoices is still considered a violation, even if the transaction value is not large. According to current regulations, the fine is determined according to the number of invoices not made:
- Failure to make 01 invoice: fine 1 – 2 million VND
- Failure to make 02 to less than 10 invoices: fine 2 – 10 million VND
- Not issuing from 10 to less than 20 invoices: fine 10 – 30 million VND
- Failure to make 20 or more invoices: fine 30 – 80 million VND
Another common error is making invoices at the wrong time, especially in the fields of retail, food, and online business. The habit of collecting transactions at the end of the day or issuing invoices after completing services is no longer suitable for new management requirements. For this behavior, the fine is also layered:
- Creating incorrect time 01 invoice: fine 500,000 - 1.5 million VND
- Creating multiple invoices at the wrong time: fines increase gradually, possibly from 5 million to tens of millions of VND, depending on the quantity and nature of the violation.
In addition, business households may also be penalized if they do not store, do not provide electronic invoices when requested, declare incorrect information or cause large and prolonged differences between declared revenue and actual revenue.
Cash flow not matching invoices: basis for determining the fine level
The 2025 Law on Tax Administration allows management agencies to collect and use information from banks and intermediary payment organizations to serve tax management. However, cash flow through accounts is not automatically considered taxable revenue, but is a basis for comparison and verification.
When cash flow shows that a transaction has occurred but there is no invoice or the invoice is not corresponding, the management agency has a basis to determine the invoice violation. In case the difference leads to a shortage of tax payable, business households may be:
- Recovering the missing tax
- Fine 20% of the tax declared insufficiently
- Add late payment interest calculated by the number of days late
A noteworthy point is that the law clearly distinguishes between individual errors, first-time violations and repeated, systematic violations. In cases where technical errors or force majeure factors can be proven, the penalty level may be considered for mitigation.
Proactively comply to avoid major risks
In a data-based tax management environment, avoiding being fined does not lie in "avoiding" transactions, but in standardizing business operations. Issuing invoices at the right time and fully for all arising transactions is a core requirement. Using a bank account with the correct business registration name, separating personal and business cash flows helps make data more transparent and easier to compare.
In addition, business households should form the habit of periodically monitoring and comparing revenue, promptly detecting errors to adjust early. This not only helps limit penalty risks, but also creates a foundation for business households to operate stably in the post-tariff tax period.
The 2025 Law on Tax Administration clearly shows the orientation: Fines are not increased arbitrarily, but closely linked to data and violations. Understanding the regulations correctly, understanding the specific penalties and proactively complying will help business households avoid unnecessary risks when entering a new management environment.
