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According to regulations, April 30th is the deadline for filing and paying first-quarter taxes for business households with annual revenue exceeding 500 million VND. However, due to the April 30th - May 1st holiday, the deadline has been moved to the next working day, May 4th, 2026. For many households transitioning from lump-sum tax to declaration tax for the first time, this is a crucial deadline, creating significant pressure in completing the necessary paperwork and familiarizing themselves with the new process. Despite increased support from the tax authorities, adapting to the new process and the requirement for transparency remains a major challenge for the individual business sector.
In reality, most business households are accustomed to paying taxes on a fixed monthly or annual basis, with minimal accounting procedures and revenue/expense recording. When switching to tax declaration, the requirements for supporting documents, invoices, ledgers, and determining tax obligations based on actual revenue pose difficulties for many households. In particular, small businesses and family businesses that are not yet accustomed to using electronic invoices or are not proficient in information technology are prone to errors during tax declaration.
For households with annual revenue under 1 billion VND, the use of electronic invoices is not yet mandatory, and the tax declaration process is considered relatively simple. Business households can use the eTax Mobile application to conduct transactions with the tax authorities, from submitting tax returns to checking tax obligations. Simultaneously, full notification of bank accounts used for business operations is encouraged to ensure transparency of cash flow.
In this context, the tax sector has implemented numerous support solutions right from the beginning of the tax declaration period. The focus has been on strengthening direct and online guidance, developing simple and easy-to-understand materials, and organizing training sessions categorized by industry. Many tax offices have assigned staff to provide hands-on support to individual households in completing their tax declarations, from how to fill out the forms to using the electronic declaration system.
However, while many businesses have initially adapted, a number of concerns remain. Ms. Khanh, the owner of a restaurant in Hanoi with revenue under 1 billion VND, shared: “Previously, paying taxes on a lump-sum basis was quite simple, but now I have to declare them myself, so I was very confused at first. However, after being guided by tax officials on how to use the eTax Mobile application, I found the declaration process not too complicated once I got used to it.”
Simultaneously, promoting the application of technology is considered a key solution. Electronic tax declaration and payment platforms are being improved to be more user-friendly, integrating automatic suggestion and error warning functions. Electronic invoices are being implemented synchronously, helping businesses easily track revenue and reduce instances of under-declaration or errors.
A notable point is that the tax authorities have changed their approach, shifting from control to collaboration. Instead of focusing on penalties in the initial phase, the authorities prioritize reminders and guidance to help businesses familiarize themselves with the new methods. Errors arising during the first declaration period are mainly handled in a supportive manner, creating conditions for taxpayers to make timely adjustments.
According to Mr. Mai Son, Deputy Director of the Tax Department, the initial phase of implementing tax declaration for business households did not focus heavily on inspection and penalties. He stated that the tax authorities understand the concerns and anxieties of business households when transitioning from the lump-sum tax method to the declaration method, particularly concerns about errors in declaration, lack of familiarity with regulations, and the risk of penalties or retroactive tax collection from previous years.
The tax authorities also recommend that individuals and household businesses separate their business accounts and record daily revenue to serve as a basis for tax declarations as required. This is a small but significant change in forming a habit of transparent and systematic financial management.
However, for the transition to proceed smoothly, we cannot rely solely on the efforts of the tax sector. Economic experts believe that a coordinated effort from relevant agencies is needed to improve digital infrastructure, connect data, and popularize digital skills among the people. Professional associations and organizations also play a crucial role in disseminating information and supporting their members in adapting to the new management methods.
For household businesses, proactive change is a decisive factor. Tax declaration is not only an obligation but also helps household businesses manage their operations more effectively, understand cash flow, expenses, and profits. When operations are transparent, opportunities to access credit and expand business become clearer.
