On May 17, 2025, the National Assembly passed Resolution 198/2025/QH15 on a number of special mechanisms and policies for private economic development. The Resolution stipulates: "business households and individuals do not apply the tax contract method from January 1, 2026; pay taxes according to the law on tax management", and at the same time stop collecting card fees from the same time. This is the direct legal basis for the elimination of contract tax.
This orientation is consistent with Resolution 68-NQ/TW dated May 4, 2025 of the Politburo on private economic development, setting the goal of eliminating contract tax for business households no later than 2026, thereby promoting transparency and creating an equal competitive environment.
To prepare for the implementation of eliminating contract tax from next year, the Government has developed a specific roadmap and issued Decree 70/2025/ND-CP (effective from June 1, 2025) on invoices and documents, paving the way for the widespread application of electronic invoices, including the invoice model generated from cash registers in retail activities and direct consumer services. This is considered a key infrastructure to step into the declaration regime according to actual revenue.
Along with that, the Ministry of Finance issued Circular 32/2025/TT-BTC guiding the implementation of invoices, emphasizing the requirement to deploy electronic invoices generated from cash registers according to data standards of tax authorities, mechanisms for authorizing invoice preparation and data transmission. This is to ensure consistency in the management system, facilitating both tax authorities and taxpayers when fulfilling their declaration obligations.
Regarding management design in the coming time, the Draft Law on Tax Administration (amended) is soliciting opinions on including a model of classifying taxpayers according to risk criteria and compliance with the law, allowing focus on monitoring high-risk groups, while facilitating good compliance groups.
A related approach is to propose classifying business households according to revenue thresholds to apply the appropriate declaration, payment and support regime. These changes mean that businesses will have to be more proactive in preparing to adapt.
So for business households, what preparation steps are necessary?
According to Ms. Le Yen - Hanoitax tax consultant, the biggest change is habits. Previously, business households paying contract tax only needed to pay a fixed amount at the fixed level, and paid little attention to recording and keeping documents. From 2026, all revenue and expenses must be transparent through electronic invoices and books. This is both a challenge and an opportunity for businesses to gradually approach modern management standards, said Ms. Yen.
On the management side, Mr. Mai Son - Deputy Director of the Tax Department - acknowledged that the conversion from tax contract to tax declaration requires businesses to increase their voluntary compliance with tax obligations, self-declaration, self-payment of taxes and self-responsibility for their tax obligations. According to him, this change in tax management method will contribute to building financial discipline and increasing fairness among business types.
Going deeper into the implementation aspect, the tax authority believes that business households and taxpayers in general need to improve proactiveness in learning about tax policies and laws, regulations related to recording books, making invoices, and storing documents. Adequate preparation will help business households minimize the risk of being fined, while taking advantage of the benefits of transparency of operations.
During the investigation, taxpayers should receive information and guidance from official sources through websites, fanpages, and hotline hotlines supported by tax authorities. Updating from these channels will help businesses avoid panic with false information, lack of basis to spread on social networks or unofficial channels. This is an important factor to ensure the conversion process takes place smoothly, in accordance with the law and reduces risks.
