“Small Business Owners and Tax Queries: Do I Need to Issue Invoices for My Market Stall?”

In the program “Solving Queries about Electronic Invoicing and Taxation,” organized in collaboration with Vietnam Television (VTV), several practical issues related to tax policies for business households were discussed.

A survey conducted by VTV with nearly 2,800 participants asked, “From 2026, if all business households are required to pay taxes based on actual income, what do you think?” Nearly 50% responded that declaring and paying taxes, even for small businesses like selling vegetables or fish, remains cumbersome.

This is also a concern for many small business owners and traders, especially in community markets. Many believe that declaring revenue is reasonable in principle but argue that actual profit levels, as well as people’s access to technology and accounting skills, should be considered.

Regarding this issue, Mr. Mai Son, Deputy Director of the Taxation Department (Ministry of Finance), shared: “In reality, issuing electronic invoices or paying taxes based on actual revenue brings benefits in terms of transparency and supports the development of more realistic policies. However, we also understand the difficulties faced by the people, especially those who have never dealt with tax declaration or are unfamiliar with technology.”

The tax authorities also clarified that not all business households are required to pay taxes. Only those who reach the threshold of revenue as per the regulations need to declare and fulfill their tax obligations.

For instance, many small traders in community markets have not reached the revenue threshold of one billion VND per year and are therefore not subject to tax payments or invoice issuance. For businesses that are genuinely taxable, the tax authorities will provide specific support, including sending officers to their premises to guide them through the declaration process instead of merely disseminating information through the media or social networks.

Additionally, there are plans to introduce more tax agents or declaration support services at reasonable fees to reduce the burden on micro-businesses. The authorities are also considering calculating taxes based not only on revenue but also on profit ratios to better reflect the reality of business operations.

Value-added tax will be recalculated based on the principle of output minus input, and some industries have been granted preferential tax rates, reduced from 10% to 8%. Regarding the concern about complex accounting when transitioning to an enterprise form, the tax department assures that the declaration mechanism will remain simple and almost identical to the current business household format.

Mr. Mai Son emphasized that the tax authorities will not just “encourage” business households to transition but will facilitate a simple, accessible, and beneficial process for them. This will also help the tax department develop more accurate policies based on transparent data and ensure fairness among different business groups in the market.