A small business in Vietnam has recently inquired about the possibility of discontinuing the use of electronic invoices, citing an annual revenue of less than 1 billion VND. However, the tax authority has clarified that the business must continue using electronic invoices until the end of the year due to its classification as a Group 2 taxpayer, which requires quarterly tax declarations.

The query was directed to the Ministry of Finance's electronic information portal, where the business expressed its confusion over the tax authority's stance. According to the tax authority in Tay Ninh province, the business's reported revenue for 2025 exceeds 1 billion VND, contradicting its claim of lower annual revenue.

The tax authority's response highlighted that under the current regulations, specifically Decree 68/2026/ND-CP and its amendments, businesses with annual revenues over 1 billion VND are required to use electronic invoices generated from cash registers that are connected to the tax authority's system. This requirement is part of a broader effort to streamline tax compliance and enhance the efficiency of tax collection.

For businesses with revenues below 1 billion VND, they may apply to stop using electronic invoices if they no longer have a need for them. However, since the queried business's revenue was officially recorded as above the threshold, it must adhere to the electronic invoicing regulations.

The tax authority advised that until the business's request to change its electronic invoice status is approved, it must continue to fulfill all invoicing obligations as stipulated by law. This situation underscores the importance of accurate revenue reporting and compliance with tax regulations for small businesses in Vietnam.