Mass business closures not due to tax policy

Most of the closed businesses are not in the group required to apply electronic invoices from cash registers.

Changes in tax management policies make many businesses worried - Photo: QUANG DINH

This information was released by the Tax Department after it was reported that the situation of business households closing down in recent days was due to tax policy.

Ho Chi Minh City: only 3.18% business household with revenue over 1 billion VND close the door

Citing a specific case in Ho Chi Minh City, the Tax Department said that according to data from the Tax Department of Region II (Ho Chi Minh City), in May 2025, when the authorities stepped up preparations to implement Decree 70, 3,763 business households stopped operating or closed.

However, only 440 of these households (accounting for 3.18%) have revenue of over 1 billion VND and are required to use electronic invoices from cash registers, corresponding to a tax amount of 1.4 billion VND.

"This shows that the majority of households that have stopped doing business are not in the group required to apply electronic invoices from cash registers according to regulations," the Tax Department affirmed.

The Tax Department of Region II said that up to now, 15,764 business households have implemented electronic invoices from cash registers according to Decree 70, accounting for 6.7% of the total 232,798 business households in the area. Of these, 11,865 households operate under the contract method and 3,899 households declare.

Although accounting for 42.6% of households subject to implementation nationwide, this rate still accounts for only about 0.4% of the total number of business households nationwide. This confirms that the regulation on electronic invoices only applies to households with revenue of 1 billion VND/year or more and in some specific fields, but confusion is widespread due to incomplete or incorrect information.

According to the tax authority, the regulation on electronic invoices from cash registers with data transfer connections to the tax authority does not change the tax policy currently applied to business households and individual businesses, but only changes the basis for determining revenue as a basis for the tax authority to determine the lump-sum tax rate of business households and individual businesses with revenue of 1 billion VND/year or more to be close to the actual revenue generated by these households.

This regulation does not affect the business activities of business households and individuals with a revenue threshold of less than 1 billion VND/year.

Business closed due to misunderstanding and fear of origin inspection goods

Recently, in many localities, especially big cities like Ho Chi Minh City, the situation of many businesses suddenly closing and ceasing operations has caused a stir in public opinion.

However, the Tax Department said that actual surveys showed that there were many other reasons such as the fear of being inspected for trading in goods of unknown origin, counterfeit goods, and poor quality goods, along with misunderstanding or incomplete understanding of tax policies and subjects applying electronic invoices.

According to Decree 70, only business households and individuals who pay taxes by lump-sum method and have annual revenue of 1 billion VND or more, operating in the fields of retail, restaurants, catering, hotels, supermarkets, passenger transport, entertainment, etc., selling goods and services directly to consumers are required to deploy electronic invoices generated from cash registers and transfer data to tax authorities.

According to the tax management database, there are currently 37,576 business households nationwide that are required to implement electronic invoices from cash registers, equivalent to about 1% of the total of more than 3.6 million business households.

However, in reality, many small businesses, even those not subject to regulation, have chosen to temporarily suspend operations due to concerns or misunderstandings that they must all be connected to cash registers, which means having to change processes, increase investment costs and be subject to close supervision...

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Source: https://tuoitre.vn/ho-kinh-doanh-dong-cua-hang-loat-khong-phai-do-chinh-sach-thue-20250616223909501.htm