Decree No. 70/2025/ND-CP, effective from June 1, 2025, clearly states that business households with revenue exceeding VND 1 billion are mandated to use e-invoices generated from cash registers, irrespective of their tax payment method, be it lump-sum or declaration. Households with revenue below VND 200 million are tax-exempt, while those with revenue between VND 200 million and VND 1 billion will be subject to tax declaration.

APPREHENSION AND WAIT-AND-SEE ATTITUDE

The new policy aims to enhance transparency in tax management, trace goods’ origins, and prevent tax losses. However, due to a lack of understanding and time to adapt, many business households have temporarily closed their operations, awaiting specific information and technical guidance from the tax authorities.

On central streets such as Le Hoan, Dao Duy Tu, and Cao Thang, many shops specializing in clothing, cosmetics, and household appliances have closed or are operating at a minimal level.
Numerous shoe stores have also shut their doors.
Similar situations occur at Tay Thanh Market and Vuon Hoa Market, which host many small business households. Many traders share their concerns about using cash registers, lacking input invoices, and fearing penalties for non-compliance with the new regulations.
At Tay Thanh Market, the market management representative confirmed that most traders have temporarily ceased operations to gather information.
According to Mr. Le Viet Dang, Head of Tay Thanh Market Management, up to 90% of the operating households have voluntarily suspended their business. The primary reason is anxiety about the new regulations related to invoices and product labels, especially for goods without clear input invoices.

Ms. Nguyen Thi L., who runs a bedding business on Le Hoan Street, shared that she currently pays a lump-sum tax of VND 2.1 million per month. Recently, tax officials guided her through installing a cash register connected to the tax authority. However, due to her age and unfamiliarity with technology, she feels confused and unsure if it is mandatory.

SUSPENSION OF BUSINESS ACTIVITIES BY SMALL TRADERS

From May 20 to June 15, Thanh Hoa province launched a campaign to supervise, inspect, and handle smuggling, commercial fraud, counterfeit goods, and intellectual property rights infringement, as directed by the Prime Minister in Official Dispatch No. 65/CD-TTg dated May 15, 2025.

Observations at major markets and commercial streets in Thanh Hoa city revealed that numerous kiosks and stalls had closed or were partially open. In Tay Thanh Market’s bustling fashion area, up to 90% of small traders had temporarily ceased operations. The market management representative confirmed that traders were concerned about their goods lacking input invoices and clear labels and feared being scrutinized during this inspection campaign.
Ms. Le Thi Th., a trader at Vuon Hoa Market, explained that clothing items are easily suspected of origin issues. Meanwhile, many fabric and bedding sellers find it challenging to determine the exact provenance of their products since they purchase from familiar sources. Some kiosks opt to close temporarily, selling only to regular customers or awaiting further information from the market management.
Ms. Phan Thi Q., a fabric trader at Tay Thanh Market, shared that news about the inspection team has made many traders apprehensive, especially those dealing with goods purchased from long-term suppliers without complete documents. Uncertain if their merchandise falls under the inspection scope, many small traders choose to play it safe by halting their business.

The representative of Tan Thanh Phat Trading Joint Stock Company, the manager of Tay Thanh Market, confirmed that many households have stopped trading due to precautionary concerns.

Market management boards are actively promoting and encouraging small traders to stay calm and proactively learn about the new regulations to resume their operations. Meanwhile, tax authorities and relevant functional forces continue to provide direct support and guidance to ensure uniform and transparent policy implementation.

According to the Steering Committee 389 of Thanh Hoa province, in the first five months of 2025, functional forces inspected and handled 829 cases of violations, with 170 cases transferred to criminal investigation agencies for criminal prosecution. The total amount of money collected for the state budget exceeded VND 93 billion. During the implementation of Official Dispatch 65/CD-TTg, 61 cases of violations were detected, and 3 cases were transferred for criminal prosecution.

You may also like

5 Businesses in Bien Hoa Industrial Park 1 Voluntarily Vacate Premises by July 31st

Five businesses located in Bien Hoa Industrial Park 1 have voluntarily committed to relocating and handing over their land to the state by July 31, 2025. This proactive step accelerates the transformation and repurposing of this key industrial area.

Optimizing Tax Compliance: Targeting Over 25,000 Online Businesses

“The Ministry of Finance revealed that in the first five months of the year, tax authorities scrutinized nearly 165,000 e-commerce business taxpayers. Over 25,000 individuals and households were subject to additional tax collections, totaling more than VND 330 billion.”

The Mayor of Ho Chi Minh City Orders Reclamation of Misused Public Housing

Violations in the allocation, management, and usage of public housing for unintended purposes or wrong beneficiaries will be strictly dealt with and penalized.

“Social Security Recovers $4.6 Billion; Workers Reap the Benefits”

With a stringent approach to technology and inspections, Vietnam Social Security has successfully recovered nearly VND 1,100 billion in overdue payments. This significant achievement is a testament to their unwavering commitment to protecting the rightful interests of tens of thousands of hardworking employees across the nation.

Unveiling the Counterfeit: 1.4 Tons of Fake Rice Seized in Nghe An, Vietnam

The authorities in Nghe An province have seized 1.4 tons of fake labeled rice from a business in Vinh City.

RELATED ARTICLESMORE FROM AUTHOR