End Of Lump-Sum Tax For Business Households: Over 13,000 HCMC Households To Apply E-Invoices From Cash Registers From 1/6/2025

Approximately 13,000 Business Households In HCMC Will Stop Paying Lump-Sum Tax From June 1, 2025

A significant change in tax policy will directly affect approximately 13,000 business households in HCMC from June 1, 2025. Accordingly, these business households will no longer pay lump-sum tax as currently but switch to using Electronic Invoices (E-invoices) generated from cash registers, directly connected to the tax authority’s data. This change is stipulated in Decree No. 70 of the Government and will officially take effect and be applied simultaneously from June 1, 2025.

New Regulation On E-Invoices From Cash Registers & End Of Lump-Sum Tax From 1/6/2025

This important information was confirmed by Mr. Nguyen Nam Binh, Head of Regional Tax Department II, at the conference for implementing Decree No. 70 and signing the agreement document for implementing E-invoices generated from cash registers, which took place on the afternoon of April 21st recently.

Speaking at the conference, Mr. Nguyen Nam Binh stated that the Government is orienting towards innovating tax policy for business households, shifting from the current lump-sum tax method to a self-declaration and self-payment model. This innovation objective is considered a spearhead for promoting the development of the private economic sector.

“Decree No. 70, recently issued by the Government, is an important step in the modernization of the tax sector, especially in expanding the application of tax-coded E-invoices generated from cash registers for business households. This is one of the key solutions to enhance tax management efficiency and facilitate taxpayers,” Mr. Binh emphasized. This regulation will officially be applied simultaneously from June 1, 2025.

Affected Business Household Groups & Details Of 6 Sectors

HCMC currently has approximately 200,000 business households (excluding residential rental households). Among these, approximately 13,000 business households with annual revenue of 1 billion VND or more belonging to 6 sectors regulated by Decree 70 will be required to use E-invoices generated from cash registers with electronic data transmission to the tax authority.

These six sectors mandatorily using cash register E-invoices include:

• Sale of goods and provision of services (including direct sales and service provision to consumers such as: commercial centers; supermarkets; retail (excluding cars, motorcycles, vehicles, and other motor vehicles)).
• Food and beverage.
• Restaurants.
• Hotels.
• Passenger transport services, direct support services for road transport.
• Arts, entertainment, recreation services, cinema activities, other personal services.

Implementation Plan & Comprehensive Support From Regional Tax Department II And Partners

To provide maximum support and facilitate business households in this transition process, Regional Tax Department II has proactively worked closely with the Ho Chi Minh City Tax Consultants and Agents Association (HTCAA) as well as preparing digital transformation solutions, including cash register solutions and E-invoices generated from cash registers.

Regional Tax Department II aims to essentially complete the implementation of E-invoices generated from cash registers for business households in HCMC by May 25th. The conference also included the official signing ceremony of a cooperation document between Regional Tax Department II, the solution providers, and representatives of HTCAA, demonstrating synchronized coordination in support efforts.

Commitment To Free Support & Advice From HTCAA To Help Business Households Transition

Notably, all solution providers have committed to providing their services entirely free of charge for business households for a period of 6 to 12 months. This support program aims to help business households easily access, familiarize themselves with, and successfully transition to the modern e-invoice model, thereby helping taxpayers feel secure in fulfilling their tax obligations correctly, promptly, and effectively.

Mr. Nguyen Ngoc Tinh – Vice Chairman of the Ho Chi Minh City Tax Consultants and Agents Association (HTCAA) – commented that the application of E-invoices generated from cash registers with data connection to the tax authority is a necessary step that helps business households make transactions transparent and manage conveniently. More importantly, it helps enhance their reputation and creates conditions for market expansion in the future.

Mr. Tinh also offered helpful and reassuring advice: “Business households, don’t worry. By using tax agent services, business households will receive correct advice according to regulations and support with filing, invoicing, and paying taxes fully. There’s no need to worry about procedures, no need to waste time looking things up, and regrettable errors can be avoided. Business households can feel secure focusing on business development, without having to struggle on their own with the increasingly modern and complex legal system.”

In conclusion, Mr. Tinh affirmed: “Digital transformation is no longer an unfamiliar concept – it is precisely the ‘ticket‘ for business households to enter a professional playing field, access civilized customers, participate in electronic transaction platforms, and confidently reach further.”