Before delving into a detailed analysis of the regulations, let's consider a real-world situation arising during this transition period:
Situation: A household producing solar power has its electricity meter reading for December 2025, recorded from December 1st to December 31st, 2025. According to the procedure, the Electricity Company will notify the household to provide the invoice by January 5th, 2026 for payment.
From January 1st, 2026, household businesses will no longer be allowed to use the lump-sum payment method but must switch to the declaration method.
- If the household's total revenue in 2025 is less than 160 million VND/year, then from 2026 onwards, the household will be exempt from paying VAT and will not be required to use a cash register.
- The tax authorities refused to issue individual invoices using the old method for December 2025 revenue and required households to purchase electronic invoice software to issue invoices themselves.
- With December revenue of only around 13 million VND, spending 1 million VND on software for a one-time use only (since it's not subject to tax/invoice issuance in subsequent years) is causing difficulties and waste for the business household.
This case is a prime example of the question: Will the "individual invoice purchase" method still exist to address transitional cases or specific business households after January 1, 2026?
Ending the Lump-Sum Tax
According to Resolution No. 68-NQ/TW dated May 4, 2025, the Politburo directed: "The lump-sum tax system for business households must be abolished no later than 2026."
To elaborate on this, Decision No. 3389/QD-BTC of the Ministry of Finance sets the objective of ensuring that business households apply the self-declaration and self-payment tax method from January 1, 2026.
Therefore, from January 1, 2026, business households will essentially no longer be managed using the fixed-rate tax method but must switch to the declaration method. This is the reason why tax authorities are refusing to process tax returns arising from the beginning of 2026 using the old procedures.
The relationship between the Declaration Method and Electronic Invoices
According to the provisions of the Law on Tax Administration No. 38/2019/QH14:
- Clause 5 of Article 51 & Clause 3 of Article 91: Business households paying taxes using the declaration method must use electronic invoices with a tax authority code.
- Decree No. 70/2025/ND-CP: Expanding the scope of using electronic invoices generated from cash registers to households with annual revenue of 1 billion VND or more, or those in the direct retail service sector.
Analyzing the issue: Can sole proprietorships purchase individual invoices?
Based on the legal grounds and the actual situation, we clearly see a "gap" in the transitional period:
For business households subject to tax declaration requirements
Typically, once the tax declaration method is implemented, household businesses are considered "business entities" that must manage their own accounting. Therefore, tax authorities require households to issue electronic invoices themselves instead of issuing individual invoices each time (which was previously reserved for non-business entities or those who previously paid taxes under the lump-sum method).
Legal loopholes for specific cases
As the case study illustrates, the difficulty lies in the following:
- The timing of revenue collection and invoice issuance overlap between the two mechanisms. Revenue is generated during the lump-sum tax period (2025), but the invoice is required to be issued during the declaration period (2026).
- Economic efficiency: For households with low revenue and no prospect of paying taxes regularly in the future, the mandatory purchase of electronic invoicing software is a significant financial barrier.
Current regulations
Currently, there are no specific regulations guiding the issuance of invoices on a transaction-by-transaction basis for business households that have switched to the declaration method. This leads to confusion among local tax offices or the rigid application of the regulation that "businesses must issue electronic invoices themselves," causing difficulties for the people.
To provide substantial support to small and micro enterprises and household businesses in accordance with Resolution 68-NQ/TW, additional guidelines are needed:
- Issuing individual invoices on a carry-over basis: Allows tax authorities to continue issuing electronic invoices on a transaction-by-transaction basis for revenue generated in 2025, but finalizing the figures at the beginning of 2026.
- Infrastructure support: Instead of requiring the purchase of software, the tax authorities could provide a portal that allows micro-sized businesses to log in and issue invoices directly on the tax system for infrequent transactions.
Contact information MAN – Master Accountant Network
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Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
Source: Article Vietnam Law
Frequently Asked Questions about whether sole proprietorships can purchase individual invoices after January 1, 2026
After January 1st, 2026, will household businesses still be able to purchase individual invoices from the tax authorities?
No, from January 1, 2026, business households switching to the tax declaration method will no longer be eligible for individual invoices under the old mechanism. Instead, business households must issue their own electronic invoices with tax authority codes for sales and service provision activities.
If a business owner is unable to issue invoices, will they be penalized?
There is a risk of penalties, especially when the buyer is a business and the transaction is subject to mandatory invoice requirements. Furthermore, the lack of an invoice prevents the buyer from accounting for expenses, leading to disputes or subsequent investigation by tax authorities.
What should a household business do if it is "stuck" between the two mechanisms?
Submit a written request/proposal to the relevant Tax Office, clearly stating: Proof that the revenue was generated entirely in 2025.
