Objective requirements from practical development

For many years, the lump-sum tax mechanism has been applied on the basis of fixed revenue and fixed payable tax, which suited an economy that was still fragmented and lacking data. However, as e-commerce, multi-channel business, and digital payments expand rapidly, the lump-sum tax model no longer meets requirements for transparency, fairness, and risk management for both taxpayers and tax authorities. This necessitates an urgent shift to a declaration mechanism based on actual transactions and data platforms.

Reforming tax management methods for household businesses is a major policy under the Politburo’s Resolution No. 68/NQ-TW on developing the private economy, and under Ministry of Finance schemes such as Scheme 3389 on “Transforming the model and method of tax management for household businesses when eliminating lump-sum tax” and Scheme 420 on “Renewing and improving the quality of tax management for household businesses”. These documents aim to promote the private economic sector to develop in a healthy, modern, and transparent manner and gradually approach international standards in tax administration.

To implement this policy, the tax sector has launched a 60-day nationwide priority campaign. This is not merely a technical operation but serves as a preparatory runway for the entire system, from data review, classification of households by scale, and development of technical infrastructure to organising training, communication, and direct support at grassroots level.

According to information released by the tax sector, there are currently nearly 2 million household businesses paying lump-sum tax nationwide. Each year, this group contributes around 26,000 billion VND in taxes, with an average monthly payment of 672,000–700,000 VND. As transaction complexity increases, management based on the lump-sum mechanism is no longer effective and can easily lead to inequality among households.

Mai Son, Deputy Head of the Tax Department (Ministry of Finance), emphasised that the tax authority has thoroughly prepared the necessary conditions to ensure that household businesses can transition without disrupting production and business activities. At the same time, many technology solution providers are participating and offering free support during the initial phase to reduce compliance costs for taxpayers.

Initial results show a positive shift, with more than 18,500 households under the lump-sum system proactively moving to the declaration system, and more than 2,500 declared-household businesses upgrading to enterprise status even though not required. This clearly reflects a change in awareness among household businesses as they recognise the benefits of transparency and proactiveness in their own financial and tax management.

Implementation based on local characteristics

In this comprehensive transition campaign, each locality has its own approach based on local socio-economic characteristics, but all work towards the same goal: helping household businesses understand the policy, follow procedures correctly, and feel confident when switching to the declaration model.

As a locality with a large and diverse number of household businesses, Ha Noi has implemented various direct support models. The Ha Noi Tax Authority has launched a large-scale series of support events for the transition, in coordination with nearly 20 solution providers, banks, and consulting units. The connection of 25 grassroots tax hubs and the invitation of nearly 200 household businesses demonstrate a proactive effort to strengthen interaction between tax authorities, technology enterprises, and taxpayers.

Household businesses are guided directly on how to use e-invoice software, sales software, and electronic tax declaration and payment procedures. Practical hands-on practice on devices helps household businesses, especially older groups with limited technological exposure, to quickly understand and grasp the process.

Truong Van Trung, owner of a car dealership on Nguyen Xien Street, shared that, although he had not previously used software, he proactively assigned his staff to attend training as he plans to transition starting from December.

In Ha Noi, according to Nguyen Tien Minh, Deputy Head of the Ha Noi Tax Authority, the tax sector has organised training with effective support from banks and tax agents; at these events, household businesses gain access to software, receive answers to all questions, and are provided with necessary information. This approach creates early consensus and reduces psychological pressure during the transition.

In Hai Phong, the city’s Tax Authority has directed implementation based on “on-site instruction”, assigning individual tax officers to specific groups of household businesses.

Nguyen Huu Tho, Deputy Head of Tax Sub-department 1 in Hai Phong, said that the unit has reviewed all data and established a dedicated support group to conduct both communication and technical training, ensuring household businesses understand the entire process so that relevant policies, documents, and guidelines can be promptly delivered to them to support the transition from lump-sum tax to declaration-based tax. At the same time, efforts focus on guiding taxpayers in implementing invoices generated from cash registers and using the eTax Mobile application to register, declare, and pay taxes electronically.

During implementation, tax officers remain close to local areas, providing immediate policy clarification to help household businesses quickly understand the policy and access support applications. “A major advantage is that Resolution No. 68/NQ-TW has been widely communicated, generating consensus from central to local levels,” Tho noted.

However, Tho added that some difficulties have been recorded, such as many households having limited technology skills and worrying about accounting capacity when making declarations; their familiarity with lump-sum tax making them hesitant to change; and concerns persisting in relation to potential costs when shifting to the declaration model from January 1, 2026.

To address these issues, Tax Sub-department 1 in Hai Phong continues to strengthen direct support so that households feel secure during the transition. The hands-on, grassroots approach of the Hai Phong Tax Authority has produced clear results, reflected through positive feedback from many household businesses.

Nguyen Thi Kim Xuan, who runs a restaurant in Gia Vien Ward (Hai Phong), shared that when she first heard about the shift from lump-sum tax to declaration, she was worried due to her limited technological skills, fearing mistakes that could lead to penalties or higher tax obligations. However, after several training sessions and receiving on-site support from tax officers and technicians to install software and guide her through issuing e-invoices and completing declarations, she gradually understood the procedures, operated the system more fluently, and felt reassured as everything was explained clearly and comprehensibly.

Similarly, in the pharmaceutical business sector, Hoang Phu Vinh (Thuy Nguyen Ward, Hai Phong) said that in the early days of switching to e-invoices, his shop spent more time becoming familiar with the software. But after a while, issuing e-invoices became more convenient, efficient, and transparent.

Having implemented electronic declarations and invoicing through cash registers since July 2025, Nguyen Thi Thanh Thuy, owner of a food business in Thuy Nguyen Ward, assessed that eliminating lump-sum tax and switching to declarations not only helps make tax obligations more transparent but also helps her family accurately control revenue by the hour and by the day.

At Tax Sub-department 4 in Hai Phong, Head of Sub-department 4 Pham Thi Duyen emphasised the need to coordinate with commune and ward authorities to create broad consensus, helping people understand the essence of the transition and avoid hesitation or misunderstandings about the new method. The locality-based approach, with individual officer accountability and direct support to each household, reflects a flexible method suited to the characteristics of the port city, where household businesses are dispersed, numerous, and diverse in industry.

Creating transparent and sustainable foundation for private economy

Unlike many localities implementing the “60-day priority campaign”, the Nghe An Tax Authority has launched a shortened but decisive approach by launching a 30-day-and-night priority campaign to meet the targets of Scheme 420 and establish a foundation for implementing Scheme 3389.

Nghe An Province currently has more than 67,000 household businesses, nearly 29,000 of which pay lump-sum tax. Under the direction of Head of the Nghe An Tax Authority Nguyen Bang Thang, working teams have been deployed to individual wards and communes to provide direct support for installing eTax Mobile, using cash registers, and creating e-invoice accounts, while also supervising and synchronising data. Alongside this, the tax authority is promoting the use of e-invoices generated from cash registers and strengthening communication through various methods, including online platforms such as fan pages and websites, which have attracted strong public interest and engagement. As of September 30, 2025, Nghe An has reviewed nearly 15,600 households brought under management, including nearly 1,300 key households, as well as the input invoices of nearly 600 household businesses, creating an important foundation for the province to complete the transition on schedule.

A mini supermarket owner in Do Luong Commune (Nghe An Province) shared: “Importing and exporting goods is more convenient and clearer when done through software instead of manually as before.”

Preliminary results from implementation across localities show that transitioning from lump-sum tax to the declaration system is not merely the adoption of a new tax collection method, but a systemic shift, from fixed assessments to data-driven thinking; from a purely administrative relationship to one based on service and partnership. When given proper guidance, household businesses not only adapt but also recognise the practical benefits of transparent and scientific revenue–expense management using tax software.

For management authorities, having all household businesses move to declarations helps establish a synchronised data system that better serves tax management tasks, prevents revenue loss, and accelerates the modernisation of the tax sector in line with national digital transformation. Reforming tax administration methods is an important step towards building a “fair–transparent–healthy” business environment, consistent with the development orientation for the private economic sector under Resolution No. 68/NQ-TW and Resolution No. 198/2025/QH15 of the National Assembly. When household businesses understand, trust, and are capable of implementation, the new policy will take root sustainably, contributing to a more modern and professional tax system that meets the development requirements of the new period.