Gas Business: Complying With Tax Laws To Avoid Risks And Optimize Profits

Latest Tax Regulation Updates For The Gas Industry

At a specialized workshop on “Tax and Legal Aspects in LPG Business” co-organized by Pacific Petro Company and Air Water Group on May 21 in Ho Chi Minh City, leading tax and legal experts provided vital information on new regulations. Key highlights included:

• Decree 70/2025/ND-CP on e-invoices (HĐĐT) generated from cash registers: Detailed guidance on applying e-invoices, especially for retail sectors like gas businesses.
• Circular 40/2021/TT-BTC on VAT and PIT: Clarifications on regulations concerning Value Added Tax and Personal Income Tax.
• Decree 49/2025/ND-CP on expanding the scope of individuals prohibited from exiting the country due to tax debt: Updates on cases where individuals are banned from exiting due to unfulfilled tax obligations.

The workshop also offered businesses, households, and individuals in the gas sector an opportunity to clarify new regulations, get answers to their questions, and receive consultation on the roadmap for converting from household businesses to enterprise models. Experts emphasized the benefits and risks to avoid in an increasingly transparent and stringent tax management environment.

Addressing Common Tax-Related Concerns

Many questions were raised at the workshop, reflecting the concerns of gas business owners regarding policy changes.

Abolition of Lump-Sum Tax and Conversion to Enterprise Model

Mr. Nguyen Huu Tuyen, Deputy Head of Tax Inspection and Examination Department No. 3 (Regional Tax Department II), stated that Resolution 198/2025/QH15 of the National Assembly approved the abolition of lump-sum tax for household businesses starting January 1, 2026. From this date, household businesses will pay taxes in accordance with current tax administration laws. This aims to create a fairer business environment between household businesses paying low lump-sum taxes and enterprises paying higher tax rates in the same sector.

Tax Arrears and Collections

According to Mr. Nguyen Huu Tuyen, if tax authorities obtain data from e-commerce platforms or if a household business’s actual revenue significantly exceeds (especially by over 50%) the declared lump-sum revenue, the tax authority will schedule a meeting to re-determine the revenue and collect tax arrears for previous tax periods.

Application of E-invoices from Cash Registers

Mr. Tran Van Quan, Accounting and Tax Expert, Director of Vietnam Tax Accounting Consultancy (VNTAC) Co., Ltd., clarified the application of e-invoices from cash registers for retail gas businesses. He confirmed that:

• If the buyer is a business establishment or entity with a tax code, the full tax code must be recorded.
• If the buyer is an individual without a tax code or who does not provide one, or does not provide a Citizen ID number, it is not mandatory to record this information on the invoice.

Entities required to apply e-invoices from cash registers include enterprises and household businesses in retail, restaurants, hotels, gold and silver trading, commercial businesses in shopping malls/supermarkets, etc. Mr. Quan also cited Article 11 of Decree 70/2025/ND-CP, which stipulates that household businesses and individuals with annual revenue of 1 billion VND or more, and enterprises engaged in direct sales of goods or services to consumers in the aforementioned sectors, must use e-invoices generated from cash registers with electronic data transmission to the tax authorities.

Mr. Quan emphasized that issuing e-invoices is very easy to do with smart devices and service-providing software. A notable advantage of this policy is that a digital signature is not mandatory, allowing invoices to be issued immediately upon completion of payment. This helps prevent penalties for issuing invoices at the wrong time. Selling goods without issuing an invoice, as stipulated in Article 143 of Tax Administration Law No. 38, can result in penalties of up to 15 million VND and criminal prosecution (depending on the specific circumstances).

Corporate Income Tax (CIT) Incentives upon Conversion to Enterprise Model

Tax expert Ms. Au Thi Nguyet Lien informed that, according to Resolution 198/2025/QH15, newly established enterprises will be exempt from CIT for 3 years from the year of establishment, applicable from the effective date of the Resolution. For startup enterprises and those utilizing new technologies, an additional 2-year exemption and a 50% reduction for the subsequent 4 years are available. Converting to an enterprise model now will help gas stores leverage policies that support the development of the private economy.

Advice For Gas Household Businesses

To ensure smooth operations and minimize legal risks in the gas business, experts recommend that enterprises proactively research and thoroughly understand tax regulations and related policies. This enables businesses to correctly interpret and comply with the law, thereby avoiding unnecessary violations and fostering sustainable development in an increasingly transparent and stringent business environment.