Ensuring shift from lump-sum to self-declaration tax system becomes substantive

More than 104,000 household businesses across Dong Nai Province, along with local tax units, are now in the peak period of transitioning management approach from the lump-sum tax regime to a declaration-based tax system.

Household businesses receive guidance on updating tax information via mobile phones. Photo: Ngoc Lien

The transition program from the lump-sum tax regime to a declaration-based tax system has drawn considerable public attention, and most household businesses are complying with the tax sector’s regulations. However, many remain unfamiliar with the new method and encounter difficulties during implementation.

Household businesses worry about technology use

The biggest concern among household businesses is the requirement to use electronic devices to manage goods, file declarations, and pay taxes. In reality, many household businesses still use manual methods. Small-scale businesses or those run by older individuals often have limited technological skills. 

Tran Hai Dat, a household business owner in Bien Hoa Ward, Dong Nai Province, shared that his barbershop has always tracked revenue and profit through daily estimates rather than bookkeeping or digital tools. Upon hearing about the transition to tax declarations, he remains unsure how to inventory goods or file taxes.

Sharing the same concern as Dat, Tran Thi Ut, who runs a grocery store in Binh Phuoc Ward, confided that her shop sells a wide variety of items, so inventorying each product will take a lot of time. She has long sold small retail purchases, so never issued invoices. She simply records daily sales and estimates profits. The requirement to use devices for tax declaration, which the tax authority has been training and propagating, makes her anxious.  She is not familiar with technology, not even smartphones. Ut hope the tax authorities will allow more time and guidance to pay taxes in line with regulations.

As a tax unit supervising many dispersed household businesses in remote areas near the Cambodian border, Tax Unit No. 9 faces significant challenges in disseminating new tax regulations. Nguyen Van Luan, Head of Tax Unit No. 9, shared that the unit manages more than 3,900 household businesses, of which 1,600 are tax-exempt.

The unit oversees nine communes, namely Loc Ninh, Hung Phuoc, Loc Thanh, Loc Hung, Loc Quang, Loc Thanh, Loc Tan, Thien Hung, and Tan Tien. In recent days, Tax Unit No. 9 has worked with commune authorities to conduct training sessions for household businesses in communes in the former Bu Dop district, Loc Tan commune and at the headquarters of Tax Unit No. 9 in Loc Ninh. Moving forward, the unit’s officials will visit each household business directly to ensure 100% of them can access tax management transition during the 60-day campaign of shifting from lump-sum to declarative taxation.

Due to the wide dispersion of household businesses under the supervision of Tax Unit No. 9, especially in areas like Hung Phuoc, Loc Thanh, Loc Hung, and Loc Quang, mass training is difficult. To overcome, tax officers will “knock on every door” to provide tailored communication and guidance.

The grassroots tax units have required household businesses to commit to issuing e-invoices generated from cash registers for every sale of goods or services that require the invoices under the regulation. Non-compliance will result in strict penalties.

NGUYEN TOAN THANG, Head of Dong Nai Provincial Tax Department 

Maximum support for household businesses

The tax sector has issued detailed notices and support plans to help household businesses understand new regulations, propagating the policy of abolishing lump-sum tax from January 1, 2026. Then, tax authorities will accompany and support household businesses throughout the transition to the new system of self-declaration and self-payment.

According to Nguyen Toan Thang, Head of Dong Nai Provincial Tax Department, the tax sector has coordinated with service providers to offer free accounting software, devices, and service fees during the initial transition phase. Up to now, the Department has introduced 5 of the best service providers to support household businesses to smoothly transition and provide maximum assistance when problems arise.

There are service providers such as Viettel, VNPT, Misa... and several banks for individuals to open business bank accounts. All grassroots tax units have hotline numbers to address difficulties and offer step-by-step guidance so household businesses can easily transition to declarative taxation.

In reality, many service providers are offering free mobile applications for household businesses. Specifically, VNPT Dong Nai provides 1,000 free e-invoices and free digital signatures for first-time users of e-invoices generated from cash registers. Dong Nai Provincial Tax Department and VNPT have committed to supporting household businesses throughout the usage process.

The tax sector has also launched online and in-person advisory programs to help household businesses understand accounting requirements, invoice issuance, and tax obligations. In addition, tax officers will regularly guide and support businesses in the process of transition to the tax declaration.

Sharing about the companionship with businesses, Nguyen Huynh An Phu, Deputy Director of VNPT Dong Nai, said VNPT has developed a mobile application specifically for household businesses. Accordingly, businesses can easily operate, manage goods, issue invoices, and declare taxes. With this app, household business owners can replace traditional handwritten bookkeeping. This is VNPT’s effort to accompany business owners in the transition from lump-sum tax to declared tax.

Nguyen Huynh An Phu emphasized that VNPT Dong Nai is rolling out this support across the entire province, including remote areas. The company is committed to accompanying business owners everywhere. After completing the transition, the household businesses will receive a full support package containing an electronic invoice software, cash register and digital signature, and 1,000 e-invoices generated from the cash register. VNPT Dong Nai will give hands-on assistance to ensure businesses can easily adopt the new system.

By Ngoc Lien – Translated by Thuy Trang, Thu Ha