According to the Ministry of Finance, in recent years, particularly since 2023, tax management of household businesses has improved considerably. The scale of this sector has continued to increase; by the end of 2024, there were approximately 3.6 million household and individual businesses nationwide, equivalent to 106% of the figure from 2023. Around 2.2 million households are operating stably (including both fixed-tax and declarant taxpayers), an increase of 4% from the previous year.
Notably, 1.3 million households have recorded annual revenue exceeding the taxable threshold of 100 million VND, accounting for 59% of the total. This indicates that more households have reached the taxable level and are expanding their operations.
"Tax management for households and individual businesses has achieved many positive results, reflecting the great efforts of the entire tax sector amid strong digital transformation.”
Dang Ngoc Minh, Deputy Head of the General Department of Taxation.
In the first eight months of 2025, total state budget revenue from household and individual businesses was estimated at 22.3 trillion VND, fulfilling 69.7% of the collection target and reaching 125.1% of the figure from the same period in 2024.
This result was achieved thanks to the tax authorities’ comprehensive implementation of management and support measures for household businesses, facilitating taxpayers while enhancing voluntary tax compliance.
Promoting digital applications for household businesses
Discussing effective solutions for tax management in the household business sector, Mai Son, Deputy Director General of the General Department of Taxation, said that the entire sector has resolutely and synchronously implemented multiple measures in leadership and administration.
Specifically, a plan entitled “Renewal and Improvement of Tax Management for Household Businesses” (Project 420) was issued in February 2025, providing a professional framework for unified implementation across the tax system.
At the same time, the General Department of Taxation has advised the Ministry of Finance to issue inter-agency coordination documents on household business management and tax loss prevention (in collaboration with the Ministry of Public Security and provincial/municipal People’s Committees). It has also released various guiding documents to address practical needs arising during the implementation of Project 420.
The effectiveness of household business tax management is assessed monthly and quarterly according to the specific criteria of Project 420 and compared to average results of provinces, cities, and local tax offices. Specialised conferences and review meetings (initially held weekly) are organised to resolve issues, accelerate progress, and share good initiatives of units for dissemination across the sector.
Tax authorities at all levels have proactively cooperated with local administration and relevant agencies in managing household businesses. In early 2025, the Ministry of Finance sent official documents to the secretaries of provincial Party Committees, provincial and municipal People’s Committees, and the Ministry of Public Security, requesting coordination in tax management and tax loss prevention for household businesses.
On this basis, tax departments have worked closely with relevant bodies (Business Registration Agency, Department of Private Enterprise Development, General Statistics Office) and held workshops with professional associations such as the Accounting Association, Tax Advisory Association, and the Small- and Medium-sized Enterprise Association to share data, exchange experiences, and support household businesses in implementing tax policies, laws, and digital transformation.
In the first six months of 2025, 13,699 fixed-tax households have shifted to declaration-based tax payment, and 1,474 household businesses were converted into enterprises, including 910 in June alone. This encouraging result demonstrates that many households are adapting to new management methods and are willing to transform their operations upon recognising long-term benefits.
According to Mai Son, the tax sector has reviewed and standardised personal tax codes, converting them into citizen identification codes for household businesses. It has also worked to prevent tax omission among fixed-tax households, manage input invoices, and monitor cash flows, thereby expanding the tax management scope for household businesses.
In the first half of 2025, an additional 254,111 household businesses were brought under tax management (additional tax registration), while 197,349 household businesses were subject to tax arrears and penalties, resulting in over 1,783 billion VND in additional tax revenue. These figures highlight the sector’s determination to strengthen tax compliance and prevent revenue loss among household businesses.
Tax consultants assist household businesses in confidently shifting to new sales management models and issuing e-invoices.
Furthermore, tax authorities have vigorously deployed digital applications for household businesses. As of June 2025, over 98% of declarant households have adopted electronic tax filing and payment. The tax sector offers free e-tax services via its online portal and eTax Mobile application, facilitating taxpayers to file and pay taxes conveniently anytime, anywhere.
In particular, the introduction of e-invoices generated from cash registers, as mandated by Government Decree No. 70/2025/ND-CP, has accelerated significantly. As of June 30, 2025, 110,295 household businesses have registered for e-invoice use generated from cash registers, including more than 20,000 fixed-tax households with annual revenues below 1 billion VND who voluntarily joined. This result exceeded expectations, showing a positive shift in awareness and readiness among household businesses to adopt digital technologies when given proper guidance and support.
Tax authorities have established working groups to directly visit business locations, assisting household businesses to install and use e-invoices generated from cash registers and addressing any issues on-site. Public communication campaigns have also intensified, with hundreds of news articles published to dispel misunderstandings and reassure household businesses.
As a result, public opinion has become increasingly supportive of the modernisation of household business management, eliminating misconceptions that new tax policies are causing closures of household businesses.
In addition to communication, tax authorities have implemented numerous practical support measures for household businesses. Training sessions on tax policies and simplified accounting procedures, organised in collaboration with the Tax Advisory Association, tax agents, and software providers, have helped household businesses improve tax awareness and voluntary compliance.
Furthermore, the General Department of Taxation has partnered with professional organisations (Accounting Association and Auditing Association, and consulting firms) to develop low-cost accounting and tax service packages for household businesses and newly converted enterprises, optimising costs and supporting them through the initial stages of digital transformation.
On August 18, 2025, the General Department of Taxation launched the “Tax Information Portal Supporting Entrepreneur” — an online platform providing information, training materials, and comprehensive guidance on tax policies for individuals, household businesses, and enterprises.
