Definition of an invoice for a sole proprietorship
A sole proprietorship is a business established by an individual or household who is liable with all of their assets. According to current regulations, invoices used by sole proprietorships are typically... invoices for the sale of goods and provision of services (excluding separate VAT) instead of a value-added tax invoice. The VAT law clearly defines: value-added tax invoices only apply to organizations and individuals declaring tax using the deduction method; business households do not fall under this category, therefore... VAT invoices are not permitted.. VAT information is not separated on the sales invoice of a household business (no separate VAT).
In the era of digital transformation, electronic invoices for household businesses An electronic invoice is a document recording sales transactions of a business household. This invoice may have a tax authority code (when using electronic signature software and transmitting data to the tax authority) or be an electronic invoice generated from a cash register (which does not require a digital signature but must be connected to the tax authority). Previously, if not yet converted, business households purchased printed paper invoices from the tax authority for declaration; now, according to the new regulations, all must switch to electronic invoices.
In short, invoices of household businesses These are invoices for the sale of goods/services issued by households (sales where tax is not separately recorded). Currently, the government encourages the issuance of these invoices electronically for convenient management and information retrieval, reducing the risk of data loss.
Legal regulations on electronic invoices for household businesses.
Decree 123/2020/ND-CP and Circular 78/2021/TT-BTC regulate the management and use of electronic invoices. Accordingly, from July 1, 2022, all business households and individual businesses must use electronic invoices. Specifically, Circular 78/2021 (Article 6) identifies the cases where business households are required to use electronic invoices:
- Household businesses, individual businesses Pay taxes using the declaration method. (Applicable to fixed tax rates) must use electronic invoices.
- Household businesses, individual businesses Paying taxes using the lump-sum method. If an invoice is required, the tax authority will issue a separate electronic invoice (sales type) for each transaction.
- Household businesses, individual businesses File tax returns on a transaction-by-transaction basis. If an invoice is required, an electronic invoice will be issued for each transaction.
Additionally, businesses in socio-economically disadvantaged areas may postpone the use of electronic invoices for up to 12 months from July 1, 2022, if they do not yet have the technological infrastructure or do not conduct electronic transactions with the tax authorities.
Decree 70/2025 (June 1, 2025) supplements regulations on Invoice generated from cash register. Accordingly, the following entities are now required to use electronic invoices generated from cash registers: household businesses and individual businesses with annual revenue of 1 billion VND or more; and retail businesses (shopping malls, supermarkets, stores), food and beverage services – restaurants – hotels; passenger transport, road transport support services, entertainment (cinema); and other personal services (salons, spas, gyms, etc.). Electronic invoices generated from cash registers must be printed from devices connected to the tax authority and are not required to have digital signatures. These new regulations aim to enhance transparency and combat tax evasion.
In short, currently All businesses must use electronic invoices.. Household businesses with an annual income exceeding 1 billion VND or operating in the aforementioned sectors will be required to use tax-connected cash registers from June 1, 2025. These regulations will help households file taxes more accurately and reduce paperwork.
Cases requiring electronic invoicing using cash registers (from June 1, 2025)
Based on Decree 70/2025 According to the tax authority's guidelines, from June 1, 2025, business households and individual business owners belonging to the following groups must issue electronic invoices generated from cash registers:
- Revenue of 1 billion VND/year or more.
- Direct retail establishment (Shopping malls, supermarkets, retail stores; excluding cars, motorcycles, scooters and other motor vehicles).
- Food and beverage industry, restaurants, hotels: Food service business, restaurants, hotels.
- Transportation, entertainment: passenger transport services, road transport support services, arts and entertainment services (e.g., film screenings).
- Other personal servicesPersonal care services (salons, spas, gyms, etc.) classified according to economic sectors.
These individuals need to use electronic cash register (with electronic invoicing capabilities and internet connectivity) to issue invoices. Invoices from the cash register are still legally valid like regular electronic invoices. This requirement helps tax authorities accurately manage large revenues and increase transparency in business.
Benefits of electronic invoices for household businesses
Electronic invoices offer many benefits to business households:
- Save costs and time.No printing or paper storage required; just software or electronic devices to create and send invoices.
The procedure is quick and automated.Once invoices are generated, they are automatically transmitted to the tax authorities. Declaring VAT and personal income tax (if applicable) becomes simpler with this readily available data. - Transparent and easily searchable management.Electronic invoice data is stored centrally, making it easy to aggregate and reconcile revenue. This Increase transparency and combat tax evasion..
Minimize losses and errors.Electronic invoices are not susceptible to burning, tearing, or loss. Electronic data minimizes calculation errors and can be backed up as a precaution. - Better customer serviceBusinesses can send electronic invoices via email immediately after creation, providing convenience and professionalism for customers.
Overall, electronic invoices help businesses reduce procedures, save costs, and align with technological trends.
Instructions for implementing electronic invoices for household businesses.
To implement electronic invoicing, business households need to:
- Register with the tax authorities.Submit your application at the Tax Office or via the General Department of Taxation's Electronic Invoice Portal. Choose online registration, fill in the information according to the form (01/ĐKTĐ-HĐĐT) and submit. The tax authority will respond via email within 1 day. If accepted, the business household will receive an account to use the system.
- Prepare the infrastructure.Ensure you have a computer and internet connection. If required, you must have an electronic cash register registered with the tax authorities. If using digitally signed electronic invoices, you need a valid digital certificate.
- Software/Device SelectionUse free electronic invoicing software provided by the General Department of Taxation or a licensed provider. For cash registers, choose products that meet the standards of Decree 70/2025 and have been approved by the competent authority.
- Create and send invoices.When making a sale, enter the information into the software/cash register; the system automatically generates an electronic invoice. Send the invoice to the customer via email or print a receipt and give it to the customer immediately after creation.
- Reporting and archivingUse electronic invoice data for periodic tax declarations. Store electronic invoices (XML files) for a minimum of 10 years as required. Regularly check the tax portal to confirm that invoice data has been recorded.
Initial implementation may require some getting used to, but in the long run, electronic invoices help automate business processes and tax filing, minimizing risks and paperwork.
Conclude
Electronic invoices are a modern revenue management tool and are mandatory for household businesses. Business invoices This refers to invoices for the sale of goods and services (in electronic form). According to regulations, all business households have been required to switch to electronic invoices since July 1, 2022. From June 1, 2025, business households with annual revenue of 1 billion VND or more, or those operating in specific industries, will be exempt. It is mandatory to generate electronic invoices from a cash register.. Complying with this regulation makes it easier for business households to achieve financial transparency and adhere to the law.
In addition, readers can contact MAN – Master Accountant Network to receive professional advice and consultation to help resolve issues quickly and accurately through:
- Mobile / Zalo: 0903 963 163 – 0903 428 622
- E-mail: man@man.net.vn
