With a large number and an extremely important role and position in the socio-economic development of the country, business households and individual businesses have created jobs, increased income for workers, eliminated hunger and reduced poverty, and stabilized society. This is also an important link in the production network, value chain and is one of the core forces in creating wealth and social material.…
In the era of digital economy development, information technology is widely applied in all fields and all classes of people, the business activities of business households, business individuals also developed rapidly. Not only operating according to the traditional model (with shops, stores, fixed business locations, business owners are often households, operating within the area of residence of individuals), this type of service also developed strongly with many new business forms such as: trade, business cooperation with organizations, business in the sharing economy model, business providing cross-border digital information content services, ...
Therefore, tax policies and tax administration need to be amended and supplemented appropriately to meet the requirements of the Tax System Reform Strategy to 2030 and the National Digital Transformation Program to 2025, with a vision to 2030 of the Prime Minister. In the past time, the tax sector has proposed and consulted the Ministry and the Government on many solutions to enhance the effectiveness of tax management for business households and individual businesses, which have initially shown effectiveness. Preliminary statistics show that the estimated cumulative revenue from business households and individual businesses in the first months of 2024 is 25,750 billion VND, equal to 119% of the revenue in the same period in 2023 (21,639 billion VND).
Implementing Resolution No. 58/NQ-CP dated April 21, 2023 of the Government on a number of key policies and solutions to support businesses to proactively adapt, recover and develop sustainably until 2025, the Ministry of Finance continues to reform tax management for individual business households to gradually reduce the difference between tax policies of enterprises and business households. Accordingly, the tax sector has proposed and advised on amendments to tax management for business households in the Tax Administration Law No. 38/2019/QH14 and documents guiding the implementation of the law to meet the goal of reforming administrative procedures and gradually reducing the difference between business households and enterprises. That is, increasing tax collection at source for individual business models closely linked to enterprises, reducing administrative procedures, increasing compliance, and transparency; Specific regulations on the responsibility of declaring and paying on behalf of individuals in business cooperation models (Grab model); for organizations in Vietnam that are partners of digital platform providers abroad when paying income from digital information content products and services to individuals.
It is noteworthy that large-scale business households must be classified as follows: pay tax according to the declaration method and implementation of the accounting regime, not applying lump-sum tax. This is a very fundamental amendment to the Law on Tax Administration to gradually reduce the difference in tax management between business households and enterprises. The regulation that business households pay taxes according to the declaration method will also apply electronic invoices with tax authority codes similar to enterprises. For business households paying taxes according to the lump-sum method, individuals doing business on an irregular basis, if they have a request to use invoices, must use electronic invoices issued by the tax authority for each occurrence. For business households in the field of direct to consumers (commercial centers; supermarkets; retail of consumer goods; food and beverage; restaurants; hotels; retail of modern medicine; entertainment services and other services), electronic invoices generated from cash registers are deployed to facilitate the use of electronic invoices for models operating 24/7 and with high frequency of invoice use.
Along with changes in tax management policies, the General Department of Taxation has implemented many key programs on tax management for business households and individual businesses. The General Department of Taxation regularly directs tax departments to review all tax management for business households and individual businesses in the area to avoid missing households, review revenue, and ensure tax rates are close to reality; deploy a digital map of business households; develop and implement 4 topics on tax management, preventing revenue loss for business households, for house rental activities, for food and beverage services, night-time economic activities, and for livestock product business activities. Notably, the implementation of e-commerce business review: Accordingly, the General Department of Taxation has promoted data connection between ministries and branches to serve e-commerce development, prevent tax loss, and ensure monetary security; guide the Tax Department on the implementation of new regulations, requesting organizations that are owners of e-commerce trading floors to provide information; guide the Tax Department on receiving, exploiting and using information provided by e-commerce trading floors; strengthen tax management for e-commerce business activities.
Regarding the implementation of electronic invoices generated from cash registers, the General Department of Taxation has deployed the solution of electronic invoices generated from cash registers. The General Department of Taxation has issued the Management Process, directing the Tax Departments of provinces and centrally-run cities to direct local tax agencies to make efforts to implement solutions under the direction of the Government and the Ministry of Finance in synchronously, uniformly and effectively implementing the tasks of implementing the solution. The General Department of Taxation has studied and proposed to complete the draft Decree amending and supplementing Decree 123/2020/ND-CP of the Government, including the content on electronic invoices generated from cash registers to ensure the legal basis to facilitate the implementation.
However, over time, tax management for business households and individual businesses has revealed some difficulties and problems such as: For business households, the management of revenue and tax rates of business households paying lump-sum tax is not yet close to reality; households declare and issue invoices to enterprises and public service units to rationalize costs; for e-commerce business activities, the e-commerce database is not yet complete to identify all organizations and individuals doing e-commerce business, transactions are not fully controlled, tax management for e-commerce business individuals is not unified due to the lack of specific regulations; through internal inspection, tax officials are found to have errors and violations in tax management for business households, etc.
In order to manage tax for business households and individual businesses; promote the implementation of electronic invoices generated from cash registers; and combat fraud and tax evasion in e-commerce, tax authorities at all levels have sought solutions to assess practical shortcomings in tax management for business households and individual businesses to propose new methods for managing business households in line with the development of the economy and society, supporting tax authorities and taxpayers to exercise their rights and obligations fully, quickly and conveniently.
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