Household businesses hesitant in using e-invoices

New procedures can be costly and time-consuming at first, photo Le Toan

Since June 1, businesses with annual revenue of VND1 billion ($40,000) or more must apply e-invoices in all transactions. However, in reality, some businesses are avoiding setting up e-invoice printers, while others are concerned about costs, operational capacity, and technical ability.

Nguyen Tien Dung, owner of a catering shop in Hanoi’s Cau Giay district, shared the difficulties he faced in adapting to the new regulations. His shop follows a household business model with unstable revenue – some days it sells out and turns a profit, while on other days, it is left with unsold goods and suffers losses. He worries that purchasing a machine and hiring accountants will be too costly for him.

“Doing business is challenging enough. Now it is even more difficult for me to adapt to new procedures. I don’t like it because it’s both costly and time-consuming,” he said.

A similar concern was raised by Tran Duy Bao, the owner of a grocery store in Hanoi’s Bac Tu Liem district. “My store is very small and run by my 70-year-old mother and me,” Bao said. “We have never written invoices before, and now we don’t know how to use a machine or how to adapt. It is really impossible for my mother.”

Regarding the food and beverage industry, Vu Van Hung, owner of a small coffee shop on Lieu Giai street in Hanoi, said he mainly serves takeaway customers with affordable prices of around VND16,000 (7 US cents).

“However, the best time for coffee is only during a few morning hours. If I have to create invoices for all customers, there won’t be enough time to serve them, and they may leave. I am waiting for a simple and time-saving way to do it,” Hung said.

Many household businesses in Dong Xuan Market in Hanoi already have e-invoice machines, but they are hesitant to use them. This is because their shops sell too many items, which change and are added daily or weekly, making it difficult to create and manage product codes.

“We household businesses will definitely comply with the regulations, but we need a roadmap to guide us so we can learn to use the machines and manage the data properly. It is too difficult for us now,” said a trader at Dong Xuan Market.

Nguyen Duc Nghia, deputy director of the Centre for Support Services for Small and Medium Enterprises, said that the rollout of e-invoices is facing many obstacles, especially among small household businesses. The main difficulties stem from limited technology, management, accounting, and software skills. In addition, current invoice software is expensive enough to be a financial burden.

Therefore, instead of enforcing regulations immediately, it is necessary to prioritise “education first, sanctions later” through communication and technical support. It is also necessary to build a synchronised e-invoice system that connects with transport and payment services – a foundation for comprehensive digital transformation among individual business households.

“The urgent thing now is to have specific support policies for household businesses. The state should provide free or subsidised invoice software, offer preferential loans for technology investment, and help them fulfill tax obligations conveniently so they can grow their businesses,” he suggested.

According to the Department of Taxation under the Ministry of Finance (MoF), starting January 2026, nearly two million household businesses currently paying lump-sum tax will shift to a new tax payment method, as the lump-sum method will be eliminated.

Mai Son, deputy director general of the Department of Taxation, said that in the draft Law on Tax Administration, the lump-sum tax collection mechanism for household businesses and individuals has been completely removed. The new mechanism will require self-declaration and self-payment of taxes, along with implementing accounting books, invoices, and documentation similar to enterprises.

The MoF is also studying amendments to the Law on Personal Income Tax and VAT regulations to adjust the annual revenue threshold exempt from tax. This is intended to ensure that household businesses with small revenue (below the threshold) continue to be exempt from tax, in line with increasing family deductions when calculating personal income tax, thereby reducing the tax burden for small and micro businesses.

Notably, the MoF aims to simplify accounting books and invoices to make implementation easier for businesses. It also plans to provide free shared accounting tools and software, and increase support and guidance on accounting, taxes, and regulations for businesses.

“The goal is to help businesses gradually become accustomed to transparent bookkeeping and invoice issuance, without creating too many complex procedures or high compliance costs. Applications and software provided by tax authorities will help businesses calculate and declare their revenue and taxes conveniently, making the transition to the new system simpler,” he said.

These technological solutions will help household businesses and small enterprises comply with tax and accounting regulations more easily, minimise errors, and reduce the time needed to fulfill tax obligations.

Data interconnection will allow tax authorities to closely monitor the activities of household businesses and promptly detect and identify tax risks or violations of the law.

“For example, based on a centralised data system, tax authorities can compare a household business’s declared revenue with cash flow, e-invoices, or information from banks. This will allow us to promptly detect tax evasion or invoice fraud. On the other hand, compliant businesses will be supported by authorities, creating the best conditions for effective operations,” Son emphasised.