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The Future of Invoicing: Hanoi’s Household Businesses Embrace the E-Invoice Revolution

20 June, 2025

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THE HANOI TIMES — Home-based businesses and self-employed sellers in Hanoi are embracing the government’s Decree No. 70, which mandates the use of electronic invoices generated from cash registers. According to the Sub-Department of Taxation – Area I, nearly 4,400 household businesses and sellers have registered to implement this new system as required by the decree.

Tax officials carrying out their duties. Photo: Kinh te & Do thi Newspaper

This progressive policy, effective June 1, 2025, is designed to enhance transparency, efficiency, and modernization in business operations. As of June 17, an impressive total of almost 9,000 home-based businesses and sellers have committed to adopting electronic invoicing, surpassing the initial goal by a significant 180%.

The Sub-Department of Taxation – Area I oversees a substantial number of businesses, households, and self-employed traders in Hanoi, totaling over 311,000 entities. Of these, nearly 5,000 households with annual revenues above VND1 billion ($38,300) are required to utilize electronic invoices from cash registers. This mandated group represents just 1.6% of the total businesses under the department’s management.

Nguyen Thi Hanh, a vendor at Dong Xuan Market, shared her experience, stating that tax officers provided guidance to her and other sellers on effectively using electronic invoices and cash registers. Most sellers are compliant and have equipped their stores with the necessary technology, she added.

Hanh recognizes the convenience and time-saving benefits of electronic invoicing. However, she expressed concern about obtaining invoices for purchasing supplies and products from individual sellers who do not provide receipts. She worries about the legality of her business without these input bills.

Nguyen Minh Tien, from the Sub-Department of Taxation – Area I, reassured that the policy does not alter existing tax obligations or disrupt business operations. Instead, it aims to foster a more transparent, fair, and modern business environment. To facilitate a smooth transition, Hanoi tax authorities conducted extensive outreach programs, including workshops, training sessions, and even door-to-door support for local businesses. They also disseminated communication materials, such as informative articles and instructional videos, across various media channels.

Tien acknowledged that there was initial uncertainty among businesses due to the policy’s novelty and the introduction of new technologies. During this transition period, the department focuses on education and support rather than penalties. However, in cases of deliberate non-compliance, they will enforce penalties as per legal requirements.

He addressed the confusion caused by media reports of shop closures or scaled-back operations in certain markets and commercial streets. Tien attributed many of these business suspensions to concerns about inspections for counterfeit goods rather than the tax policy itself. Additionally, he clarified that tax adjustments are possible if a business’s revenue differs significantly from their declared amount, as outlined in the Law on Tax Administration and relevant circulars.

The Sub-Department of Taxation – Area I encourages businesses to thoroughly understand tax policies to meet their obligations to the state budget. Officials will manage business revenues by industry to set appropriate tax levels. They also advise business owners to request invoices when purchasing goods and services for commercial use, contributing to the government’s efforts against counterfeit products and enabling origin traceability.