Nguyen Thi Thu Lien, an F&B business owner in HCMC, has been overwhelmed in recent days, juggling sales while learning to use newly purchased e-invoice software. The system tracks every item sold, allowing her to review daily sales of specific dishes.
“I was summoned by tax officials to a conference for policy dissemination and software training. Yet, I still feel immense pressure and stress, losing sleep many nights,” Lien shared. She admitted being unfamiliar with the software while also worrying about sourcing, cooking, and serving customers. “Some inputs have invoices, but small purchases like vegetables or chili at the market do not,” she added.
Similarly, Mr. V., who runs a dental clinic in HCMC, reluctantly bought sales software from a provider. He noted that the software isn’t entirely practical, lacking certain necessary functions, but he is learning to use it gradually.
“I tell myself that if I could study to become a doctor, I can handle this. Honestly though, I’m mentally prepared to hire an accountant or tax agent so I can focus on my expertise. But that increases costs, forcing me to raise prices, which ultimately hurts the customers,” Mr. V. said.
Meanwhile, My Chau, a clothing wholesaler with nearly VND1 billion (US$38,000) in annual revenue, worries about inventory lacking invoices. Her confusion deepened after fellow merchants reported buying unusable software, wasting money.
Tran Thi Hanh, a produce trader at Binh Dien Wholesale Market with over VND3 billion ($114,000) in annual revenue, is anxious because her revenue falls on the borderline between Group 2 and Group 3 classifications. Her inputs are bought directly from farmers without invoices, labor is seasonal, and profit margins are low. If applied to Group 3 (revenue over VND3 billion/year, requiring the deduction method), businesses like hers cannot survive. She hopes for flexibility in choosing declaration methods suited to specific industry characteristics rather than a rigid “one-size-fits-all” framework.
As informed by Mai Son, Deputy Director of the General Department of Taxation (Ministry of Finance), during the 60-day focused period from early November, the tax sector launched a nationwide survey to classify business households and determine appropriate support methods. Over 40 days, more than 2.5 million households were surveyed and assessed for readiness. Results show that while businesses wish to comply, they lack the tools, skills, and familiarity with electronic tax declaration.
“The tax sector’s consistent stance during this phase is to support, guide, and enhance direct assistance, promoting digital transformation to help businesses easily grasp the new management method,” he stated. On December 12, the Tax Department launched an Experience Portal, a simulation platform allowing households to practice declaring and paying taxes without incurring obligations or legal risks.
In HCMC, Deputy Head of the HCMC Tax Department Nguyen Van Thanh identified two main concerns: complex bookkeeping requirements and no-invoice inventory handling.
Aware of this, the tax sector will prioritize guidance over penalties in the initial phase. Currently, 99.7 percent of HCMC business households have been informed of the new policy, with 92 percent ready to transition. The remaining 8 percent are being supported to ensure 100 percent compliance by the January 1, 2026 deadline.
A survey by the Vietnam Chamber of Commerce and Industry (VCCI) revealed that 49 percent of households believe the transition will significantly increase costs and time for managing invoices. Many are used to manual methods and fear penalties for errors.
Tax leaders clarify that under the new Personal Income Tax Law, households with annual revenue under VND500 million ($19,000) are exempt from personal income tax. Households will only pay tax on revenue exceeding VND500 million, rather than on the first VND of revenue as before.
For households with revenue between VND500 million and VND3 billion, two calculation methods are available:
- Taxable Income (Revenue - Expenses) x Tax Rate
- Revenue x Tax Rate
With the revenue-based method, households need not worry excessively about inventory documentation. For the group with revenue over VND3 billion, which is a minority, Deputy Head of the Hanoi Tax Department Nguyen Tien Minh stated at a VCCI seminar that the agency will conduct a one-week survey on their inventory issues and report to higher authorities for guidance.
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