Business households adapting to new tax policy

ĐBP - Starting January 1, 2026, the official abolition of the flat-rate tax system for business households marked a significant turning point in the economic landscape of Điện Biên province.

This transition moves away from revenue estimates toward a sophisticated system where income is recorded through electronic invoices and reported via online filing, allowing tax authorities to access data that accurately mirrors actual business operations while ensuring competitive fairness among all local entrepreneurs.

During a high-intensity push in late 2025, the provincial tax sector successfully updated the records for all 13,125 managed households, reaching a perfect completion rate. Among these, 11,318 households reported annual revenues below VND 500 million, while 1,807 households exceeded that threshold. These businesses were meticulously trained to navigate the eTax Mobile application for digital payments and filings, creating a standardized foundation for the new regulatory requirements. According to provincial Tax Director Nguyễn Quang Việt, households now have the flexibility to either adopt the declaration method or transition into small and medium-sized enterprises. The new monthly or quarterly filing cycles, based on transparent accounting books and e-invoices, are designed to significantly reduce legal liabilities while increasing overall market transparency.

A tax official from Branch 3 provides on-site guidance to a business household in Tuần Giáo district regarding the implementation of the new tax policy.

Naturally, the early stages of this rollout have encountered some friction, particularly among older business owners who are less familiar with modern technology. Some have expressed hesitation regarding the hardware investment required for cash-register-linked e-invoices or the prospect of revealing their actual revenue. To combat this skepticism, tax officers like Trương Thị Huyền Trang have adopted a persistent, “knock-on-every-door” approach, providing direct, on-site guidance to help owners master the necessary digital tools and feel secure in their compliance.

At Tax Branch 1, which manages nearly 4,000 households, customized communication plans have been tailored to specific industries to ensure that every step, from app installation to e-invoice generation, is handled with precision. The real-world impact of this shift is already visible at establishments like the Đức Thành Bookstore in Điện Biên Phủ ward. Owner Nguyễn Thị Thu Chiên, whose stationery and school equipment business brings in over VND 1 billion annually, proactively moved to the declaration method in mid-2025. She noted that the transition has made managing cash flow far more transparent and transaction processing much smoother, as invoices can now be printed directly from a smartphone or computer.

Looking ahead, Điện Biên tax authorities intend to continue promoting these new policies and refining compliance support to better suit the declaration model. While this represents a substantial change for traditional households, the proactive adaptation of business owners, supported by dedicated institutional guidance, is successfully integrating this modern management style into the local economy. Ultimately, these efforts are building a more transparent and stable environment for sustainable business growth across the province.

Lan Phương
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