Le Huy Phuong Nam, owner of a paper decoration business household, says his input materials come from various sources without invoices, leaving him unsure how to declare taxes. He also wonders whether incorrect inventory figures as of December 31, 2025, could lead to penalties from tax authorities.

Dang Thi Hong Khanh, owner of Cao Dat coffee business household, points out that her coffee raw materials are sourced from her hometown with no invoices, and that coffee processing involves inevitable losses, raising concerns about proving actual output.

Amid current business challenges, Tran Thi Hong Van, owner of a beauty spa, suggests that companies selling tax declaration software should lower prices for business households, because the expenditure on software would put another burden on them.

These were three of many concerns raised by household businesses at the seminar “Presumptive tax ending, what should household businesses prepare for?” organized by Tuoi Tre newspaper on October 8.

According to the Tax Department under the Ministry of Finance (MOF), most of the 5 million business households currently pay lump-sum taxes at fixed rates. The shift to self-declared taxes from January 1, 2026, will directly affect millions of traders.

Quach Chanh Dai Thanh Tam, CEO of Tapro, a company specializing in financial and accounting consulting, identified key barriers to this transition.

First, mindset and habits. Many businesses resist change, fear tax authorities, and prefer family-style management. Second, costs and procedures. The transition requires extensive paperwork, costs for hiring accountants, and legal compliance.

Third, management and personnel. Most owners are unfamiliar with professional business management models, lacking operational and planning skills. Fourth, policy and support. Current support programs are limited, and household businesses lack guidance during the transition.

Tam noted many highly profitable household businesses have become worried after learning of the mandatory shift from presumptive to self-declared taxes.

Support

Nguyen Xuan Thanh, Vice Chair of An Dong Ward People's Committee (HCMC), said many households are afraid of being fined for late or incorrect tax filings. Older business owners may also struggle with electronic tax declaration systems.

On behalf of local traders, Thanh proposed that tax officials visit households directly to guide them through the process and outline tasks they must complete before and after January 1, 2026, when the new taxation mechanism starts.

He also recommended a dedicated tax support hotline for technical and procedural help, as well as a list of affordable, reputable accounting service providers. In addition, he urged authorities not to penalize first-time mistakes to encourage compliance with the new laws.

Thanh further suggested that tax software providers offer at least one year of free access, along with training for household businesses.

At the seminar, Mai Son, Deputy Director of the Department of Taxation reassured attendees that the transition from fixed tax to self-declaration would not be as complicated as thought.

He explained that taxpayers only need to become familiar with basic bookkeeping and register for e-invoices if applicable. Business households should begin using tools like eTax Mobile for electronic tax declarations and payments.

Tax authorities are currently offering free integrated e-tax services, from registration to declaration and payment, allowing taxpayers to handle everything easily via smartphone or computer, without visiting tax offices in person.

The Department of Accounting and Auditing Supervision is working on revising accounting rules for business households and micro-enterprises, aiming to simplify compliance. The goal is to allow business owners transitioning to micro-enterprises to maintain records using supported apps without hiring professional accountants.

Son said the Tax Department is developing a smart electronic tax declaration function that automatically suggests revenue and tax amounts based on invoice data and business registration information. Taxpayers only need to review and confirm; this simplifies the process, reduces errors, and saves time.

“We are also establishing channels to listen and promptly address businesses’ concerns, so they no longer feel confused or unsupported,” he emphasized.

Since July 1, 2025, individuals and household businesses selling on e-commerce platforms have been able to declare and deduct value-added tax (VAT) and personal income tax. Decree No 117/2025, effective from July 1, mandates that e-commerce platforms with payment functions will declare and pay taxes on behalf of individuals and household businesses.

Nguyen Le