New Taxi Fare Regulations Coming in 2025

Beginning January 1, 2025, passengers will have the opportunity to negotiate taxi fares directly with drivers, as outlined in a recent government decree.

This new rule is part of Decree No. 158/2024/ND-CP, which establishes guidelines for taxi operations and regulates road transport services.

Vehicle and Fare Standards

The decree specifies vehicle standards for taxi services and lays out various fare calculation methods. These methods include traditional taxi meters, software-calculated fares, and negotiated prices between riders and taxi companies.

If a taxi does not feature the standard “TAXI” sign on its roof, it is required to display a reflective sign inside the windshield and rear window. This sign, which should be marked “TAXI,” needs to measure at least 6×20 cm. For taxis utilizing electronic displays, these must remain lit and meet the same size specifications.

Taxis that display a roof sign with “TAXI” (minimum size of 12×30 cm) do not need to have the reflective signs.

Invoice Requirements

The decree requires taxis to have approved taximeters equipped with devices for printing invoices or receipts. These devices must be positioned where passengers can easily see them. Drivers are required to provide electronic invoices at the end of each trip.

Taxis utilizing software for fare calculations must have systems that enable passengers to make bookings, cancel rides, and calculate fares electronically. This technology should clearly display the taxi company’s name, driver details, vehicle registration, distance traveled, and total fare.

Negotiable Fares and Compliance

A significant update in this decree is the introduction of fare negotiation among passengers and taxi companies based on the rate charts displayed in the vehicle or via the company’s application.

At the end of rides calculated through software, electronic invoices must be issued to passengers and reported to tax authorities.

This regulation is intended to assist traditional taxi services, which have faced challenges under stringent operating conditions compared to app-based transport services. It aims to create more flexible pricing in line with market conditions.

To address concerns about potential revenue losses and tax evasion from fare negotiations, all businesses are mandated to utilize electronic invoices. This will ensure adherence to tax regulations.

“While fares can be negotiated, businesses are still obligated to issue an electronic invoice and report it to tax authorities. Invoices must be provided following any fare agreement, regardless of the pricing approach,” stated a representative.

Strict regulations will be enforced to ensure compliance, with inspections and penalties for failure to provide invoices.