Tax Expert: Selling 10 Chickens Daily and 30 Bowls of Pho Daily Reaches Annual Revenue of 500 Million VND

On the morning of December 10, the Vietnam Association of Corporate Directors (VACD) and TheLEADER e-magazine, in collaboration with HKDO Accounting Software, hosted a seminar titled “Resolving Challenges in Transitioning from Lump-Sum Tax to Tax Declaration” for business households.

Speaking at the seminar, Ms. Le Thi Duyen Hai, Deputy Secretary-General of the Vietnam Tax Consultancy Association, shared that approximately six months ago, when electronic invoices were first mandated from June 2025, many business households experienced anxiety. Some even closed their shops due to concerns about additional costs, fear of new technology, or worries about revenue scrutiny through bank transactions.

However, upon understanding that the new regulations aim not only to monitor but also to enhance transparency and convenience in management, coupled with support from solution providers and banks, stability was restored within just two months.

Currently, as we enter the tax declaration phase, although some apprehension remains, the process is expected to proceed more smoothly, thanks to better preparation by authorities and supporting entities.

Regarding the taxable revenue threshold, Ms. Hai noted that while VND 500 million or VND 1 billion may seem significant for business households in remote areas, it is relatively small for those in major cities. Additionally, this threshold varies depending on the profit margins of different industries.

For instance, a grocery store with VND 500 million in revenue but a low-profit margin—where VND 10 in capital yields only VND 1 in profit—this figure is modest. Conversely, in high-profit sectors like property rental or pho sales, the significance of VND 500 million is entirely different.

“For example, a market poultry vendor selling just 10 chickens daily would reach the VND 500 million annual revenue threshold, or a pho shop selling 30 bowls daily would achieve the same. This highlights the vast disparities across regions and industries, resulting in 90% of urban business households potentially exceeding this threshold, while others in different locales may not,” Ms. Hai explained.

Therefore, experts suggest that the taxable revenue threshold should be flexibly adjusted to suit various industries and gradually align with real-world conditions. Such adjustments will foster greater transparency and fairness in both state management and business operations. While the current VND 500 million threshold is considered positive compared to previous proposals, future revisions will further align it with practical realities.