Brian Jeffrey
With Vietnam set to enforce mandatory e-invoicing from cash registers for small enterprises earning over USD 39,000 annually, there are rising concerns about the readiness of these businesses.
Numerous local market vendors and street food sellers find themselves daunted by the new digital tax regulations scheduled to begin on June 1, 2025.
While larger companies are accustomed to digital invoicing, this change presents a significant challenge for countless small merchants. The upcoming policy mandates that invoices be generated via a point-of-sale system and sent to tax authorities in real time.
Thu Trang, who sells bedding in Hanoi, currently operates under a flat-rate tax system and admits to feeling bewildered. “I’m not very tech-friendly. Concepts like ‘e-invoice from a cash register’ or ‘real-time data link’ feel overwhelming,” she shared. Like many others, she wishes for clearer instructions and software assistance from tax authorities.
Nguyen Van Than, Chair of the Vietnam Association of Small and Medium Enterprises, proposed a solution: a free accounting application from the government aimed at aiding small business owners in maintaining their financial records and meeting tax requirements. This tool, he suggested, would lessen the workload of tax officials who oversee over 5 million small businesses across the country.
Nguyen Minh Thao, who leads the Business Environment and Competitiveness Research Department at the Central Institute for Economic Management, advocates for the shift from flat-rate taxes to digital invoicing to promote fairness and transparency. She highlighted that achieving the objective of 2 million formal businesses by 2030 necessitates such reforms.
However, she cautioned that the rollout schedule has been too abrupt. “Many business owners have not had sufficient time to acquire the needed technology or to link their systems with the tax authorities,” Thao explained.
Older traders and those located in rural regions, where internet connectivity and digital skills are often lacking, are particularly affected. Thao suggested postponing the mandate by at least three months to allow proper preparation and training. “Hastening the implementation poses challenges for both business owners and tax officials,” she pointed out.
She stressed the need for authorities to focus on education and encouragement rather than penalties. “Only after providing thorough support and a grace period should fines be considered for those who still fail to comply.”
Nguyen Thi Cuc, Chair of the Vietnam Tax Consultancy Association, confirmed that integrating cash registers with e-invoicing systems is feasible in today’s digital landscape. However, she suggested categorizing businesses into those ready to implement e-invoicing immediately and those that might require submitting buyer information to the tax office and printing invoices at a later time.
In response to these challenges, Mai Son, Deputy Director of the General Department of Taxation, assured that tax officials would begin outreach to small businesses this June to facilitate the transition.
To provide adequate support, many local tax offices plan to have staff available outside regular hours and will collaborate with software providers to offer practical, in-person training sessions for small business owners adopting the e-invoicing system.
