HÀ NỘI — Hà Nội has reported significant improvements in tax compliance and digital transformation six months after replacing the lump-sum tax regime with a declaration-based tax system for household businesses.

The reform replaced the previous fixed lump-sum tax system with one that requires businesses to declare their actual revenue and, in many cases, issue electronic invoices.

According to the Hà Nội Tax Department, information for 312,442 of the city's 330,120 household businesses has been reviewed and standardised, covering 94.6 per cent of all registered businesses.

Nearly 98 per cent of household businesses now have electronic tax accounts and use the eTax Mobile application, while all tax returns have been submitted on time. Around 60 per cent have adopted electronic tax payments.

Among businesses required to use electronic invoices, more than 90 per cent have completed registration.

For household businesses with annual revenue exceeding VNĐ1 billion, 60 per cent now issue electronic invoices directly from cash registers.

The declared revenue of this group has increased by 75 per cent compared with the period before the reform.

The reform has also encouraged business formalisation. Since the beginning of the year, 1,151 household businesses have converted into companies, a 27 per cent increase from a year earlier.

State budget revenue managed by the Hà Nội Tax Department during the first six months of the year is estimated at VNĐ387.2 trillion, equal to 63.1 per cent of the annual target and 3.1 per cent higher than a year earlier. 

Revenue from production and business activities reached VNĐ183.4 trillion, up 32.8 per cent. — BIZHUB/VNS