Discipline tax management of business households
![]() |
Large business households will conduct online declarations and tax payments. Photo: Thuy Linh. |
Increase the responsibility of large household businesses
The revenues from household businesses, as assessed by the tax sector, have been low compared to their development scale. Therefore, in the draft Circular guiding all contents of tax and tax administration for business households and individuals, the Ministry of Finance has separated regulations on tax administration for large-scale business households.
According to the General Department of Taxation, the amendment and supplementation of a number of tax administration circulars is to remove problems in tax administration for business households and individuals in recent years. Simultaneously, these regulations expand the tax base for a number of business areas of individuals that have not been regulated to adjust tax collection appropriately, ensuring fairness with other businesses.
According to the draft's regulations, the tax industry will promote electronic tax declaration and payment for business households, firstly for households that pay taxes according to the declaration method, and then will perform electronic tax declaration and payment for all units.
Large-scale business households have to prepare accounting books, invoices and documents like a micro-enterprise, but at a simpler level.
To manage large business households, the Ministry of Finance suggested that these units could declare taxes monthly or quarterly without tax finalization. They will pay tax according to the tax rate on revenue according to each category of production and business activities instead of calculating tax on revenue minus expenses. Therefore, they will implement a simple accounting regime, including only four types of books (revenue book, salary book, management expense book, and purchasing service book), and do not have to prepare financial statements.
This will minimize administrative procedures for taxpayers, and the tax authority also has enough information to manage tax according to the risk mechanism. If a business household does not have a large scale but needs to use invoices, it is encouraged to use invoices and must follow the accounting and tax payment regime according to the declaration method.
Apply e-invoices for large business households
In the draft circular, the Ministry of Finance stipulated that large business households have to make e-invoices when they are applied nationwide. According to the General Department of Taxation, this is aimed at strictly managing large households using VAT invoices, avoiding trading in this kind of invoices to legalize inputs for businesses.
This is because business households use invoices with the application of lump-sum tax, they do not have to keep accounting books, prove their inputs, and declare them with the tax authorities, meanwhile, they still issue VAT invoices as usual. Therefore, some business households take advantage of this to trade in VAT invoices even though they do not have any production or business activities.
The draft Circular on tax administration for business households and individuals also guides that households that do not have a fixed place of business or do business infrequently, will pay taxes every time it arises. And households that use retail invoices or declare and pay taxes before being issued retail invoices, are not required to follow the accounting regime. However, they must keep invoices and relevant documents to prove their legal goods, together with tax declaration dossiers for each time retail invoices are issued.
In fact, there are many large business households with revenue and scale similar to that of a small business. However, if these households continue to pay lump-sum tax like small business households, it will be unfair. Therefore, according to many experts, the provisions in the draft circular guiding tax and tax administration for business households and individuals are suitable with the current context. This will also be an effective measure to encourage households to upgrade to being businesses.
Related News

The importance of user-friendly tax platforms for online retailers
15:27 | 07/12/2024 Finance

Tax authorities and Police join forces to crack down on e-invoice fraud
14:14 | 12/11/2024 Finance

Perfecting the law on import and export tax towards exemption and reduction for the right subjects
15:00 | 05/11/2024 Customs

Businesses can choose a suitable electronic invoice model generated from the cash register
14:18 | 25/10/2024 Finance
Latest News

Flexible tax policy to propel Việt Nam’s economic growth in 2025
14:14 | 06/02/2025 Regulations

Brandnew e-commerce law to address policy gaps
18:44 | 29/01/2025 Regulations

From January 1, 2025: 13 product codes increase export tax to 20%
14:23 | 29/12/2024 Regulations

Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025
13:46 | 28/12/2024 Regulations
More News

Proposal to reduce 30% of land rent in 2024
14:58 | 25/12/2024 Regulations

Resolve problems related to tax procedures and policies for businesses
13:54 | 22/12/2024 Regulations

New regulations on procurement, exploitation, and leasing of public assets
09:17 | 15/12/2024 Regulations

Actively listening to the voice of the business community
09:39 | 12/12/2024 Customs

Step up negotiations on customs commitments within the FTA framework
09:44 | 08/12/2024 Regulations

Proposal to amend regulations on goods circulation
13:45 | 06/12/2024 Regulations

Review of VAT exemptions for imported machinery and equipment
10:31 | 05/12/2024 Regulations

Customs tightens oversight on e-commerce imports
13:39 | 04/12/2024 Regulations

Bringing practical experience into customs management policy
13:48 | 03/12/2024 Regulations
Your care

Flexible tax policy to propel Việt Nam’s economic growth in 2025
14:14 | 06/02/2025 Regulations

Brandnew e-commerce law to address policy gaps
18:44 | 29/01/2025 Regulations

From January 1, 2025: 13 product codes increase export tax to 20%
14:23 | 29/12/2024 Regulations

Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025
13:46 | 28/12/2024 Regulations

Proposal to reduce 30% of land rent in 2024
14:58 | 25/12/2024 Regulations