Worrying about costs and procedures
From June 1, 2025, about 13,000 business households in Ho Chi Minh City with revenue of VND1 billion/year in industries such as food, restaurants, hospitality, supermarkets, retail... will no longer pay contract tax but will switch to using electronic invoices generated from pre-connected computers to connect data with tax authorities, according to Decree 70/2025/ND-CP.
Many business households expressed concern about having to invest in money computers, accounting software, and hire more personnel to meet new requirements. Mr. Tran Van Minh - the owner of a grocery store in District 5 said: "I am worried because I am not familiar with technology, afraid that I will be fined for wrongdoings. Before now, I was only used to selling and paying a fixed contract tax every month. Now I have to invest in computers, software, digital signatures... I find it too messy".
Many business households also hope for detailed instructions to make the transition to enterprises more smooth. Ms. Nguyen Thi Hong - owner of 2 snail stores in Go Vap district said that she is currently operating as a business household. Each store currently pays a contract tax of more than 1 million VND/month.
"From next June, when applying tax calculation based on actual revenue recorded via cash register, the tax payable may increase compared to the present. I am also worried that if I switch to the business model, it will lead to many arising costs as well as a higher penalty than for business households, Ms. Hong shared.
Tax authorities pledge to support
MSc. Nguyen Ngoc Tinh - Vice Chairman of the Ho Chi Minh City Tax Consulting Association (HTCAA), Director of TPM Tax Consulting and Agency Joint Stock Company - commented that many business households are only used to trading and paying contract tax, so having to worry more about machinery and accounting books makes them worried, which is completely understandable.
However, Mr. Tinh also reassured that if the business household complies with regulations and does not do anything wrong, there is nothing to worry about. According to him, transparency of business activities through the use of cash registers brings many practical benefits, such as contributing to eliminating goods of unknown origin, creating a healthy competitive environment, thereby protecting serious traders.
this transparency in revenue also opens up opportunities for businesses to more easily access bank capital, instead of having to use mortgaged assets such as red books as before, said Mr. Tinh.
The Ho Chi Minh City People's Committee has issued a document requesting departments, branches and localities to strengthen tax management for business households and individuals, especially the implementation of electronic invoices from cash registers. This is a solution to prevent budget losses and ensure fairness among business segments.
The tax sector must review all business households that are operating but have not been put into management, and at the same time build a digital map to effectively monitor. The Ho Chi Minh City People's Committee also assigned the finance and tax sectors to propose policies to support business households that are still having difficulty in applying technology.
In particular, the Ho Chi Minh City People's Committee assigned the police sector to receive and process tax violation records sent by tax authorities, share data on transportation journey monitoring, coordinate the verification of individuals renting houses, providing accommodation services or e-commerce that have not registered for tax. Commune and ward police are required to accompany the tax sector in inspecting and verifying undeclared business activities.
