Tax authority reviews compliance costs for retailers switching to tax declarations

Tax authority reviews compliance costs for retailers switching to tax declarations

Mai Xuân Thành, director of the Việt Nam Tax Authority, said the authority will continue gathering feedback from businesses and monitoring implementation to identify shortcomings.

For supermarkets and retailers which handle large transaction volumes, compliance costs for declaration-based taxation and electronic invoicing are considerable. — VNA/VNS Photo Lê Đông

The Việt Nam Tax Authority is reviewing costs by supermarkets and retail businesses as they switch from presumptive tax payments to declaration-based taxation and electronic invoicing in an effort to ease the compliance burden and develop solutions suited to different business models.

At a recent meeting to examine difficulties and expenses arising from the transition, including the use of electronic invoices and invoices generated by cash register systems, the department said tax policies take into account the scale, business models and operating conditions of individual businesses.

Việt Nam Tax Authority Director Mai Xuân Thành said the agency will continue gathering feedback from businesses and monitoring implementation to identify shortcomings.

Local tax departments were instructed to listen to concerns raised by enterprises, household businesses and service providers, and analyse individual cost items to determine their necessity and suitability for business operations, he said.

The review will also examine the pricing structure of electronic invoicing services, including software, licensing, system connectivity, upgrades and technical support to identify necessary expenses.

A representatives of the Hà Nội Tax Department said compliance costs include not only purchasing software or paying for electronic invoicing services but also staff, time and other resources to meet requirements for tax declarations, accounting and invoicing.

For supermarkets and retailers handling large transaction volumes, compliance costs for declaration-based taxation and electronic invoicing are considerable, which can directly affect operating efficiency.

Smaller businesses, meanwhile, often face constraints in accounting staff, digital skills and data management for tax declarations.

Household businesses also called for their practical difficulties to be taken into account and for the costs associated with the transition to be gradually reduced.

The tax authority said it would step up dialogue and gather feedback to ensure tax policies are implemented transparently and efficiently, reduce unnecessary compliance costs and maintain effective tax administration while enabling businesses and household enterprises to grow sustainably. 

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