From June 1, over 37,000 households with a revenue of over 1 billion VND per year in a number of industries such as food, retail, entertainment, etc. must use electronic invoices via computers before connecting with tax authorities.
Resolution 68 of the Politburo also requires the elimination of contract tax with business households, no later than 2026.
Business households will apply accounting forms such as recording revenue and accounting books, making and storing invoices, documents, receipts, and expenditures arising during the period. At the same time, the declaration of revenue to the tax authority will be done monthly or quarterly, instead of paying once a year.
According to data from the Statistics Office (Ministry of Finance) by the end of 2024, the whole country will have 3.6 million tax-managed business households, contributing VND 25,953 billion to the budget. Of these, nearly two million households pay contract tax, an average of 700,000 VND per month.
Mr. Mai Son - Deputy Director of the Tax Department said that the form of contract tax shows some limitations, not bringing the necessary motivation for business households to develop on a large scale. The elimination of contract tax is a revolutionary turning point in tax management for business households.
However, most business households are not used to the accounting system, invoices and documents according to the declaration method. Especially for households with revenue under 1 billion per year.
In addition, businesses that are small traders and the elderly still face difficulties in issuing electronic invoices due to technological factors.
To reduce the burden on tax authorities as well as facilitate business households, many opinions say that there should be free training programs on management, accounting, and digital transformation for business households.
It is known that the tax authority will study and amend tax regulations in the direction of gradually reducing the difference between business households and enterprises. At the same time, it will review and contribute ideas to amend the Law on Personal Income Tax so that business households can apply this tax calculation method similar to corporate income.
