Business culture and legal compliance: a foundation for sustainable growth of household businesses

Paying tax obligations is the foundation for building trust and credibility for each business entity. A seminar on “Business Culture linked to Legal Compliance,” organized by the Vietnam Chamber of Commerce and Industry (VCCI) in collaboration with the Tax Department and partner units, highlighted the role of tax compliance in supporting household businesses as they prepare for quarterly tax declarations for 2026.

Tax compliance as a foundation for credibility

Hoang Quang Phong, Vice Chairman of VCCI, emphasized the importance of linking business ethics and a culture of compliance with the law. He said this is not only a legal requirement but also a strategic direction under Party and State policies to develop the private sector. Phong noted that forming a habit of transparent business operations and fully fulfilling tax obligations helps enhance the reputation of each business entity and supports a fair, healthy business environment.

VCCI leadership also pointed out that household businesses are the “seed” of future enterprises. Cultivating a business culture and a compliance mindset from the early stage, they said, has decisive implications for the long-term development of the private sector.

Digitization and taxpayer-centered administration

Nguyen Thu Tra, Head of the Compliance and Taxpayers Support Division (Tax Department), stated that the tax sector is accelerating administrative reform and digitization with the principle of placing taxpayers at the center of service. She said this is particularly important for the household sector, which is a key part of the economy where many potential business models are formed and can gradually transition into enterprises.

Tra added that complying with tax regulations is not only a legal obligation but also a first step to build trust with customers, partners, and government authorities. She referenced the Tax Authority’s principle of “management must go hand in hand with support; guidance must come before inspection,” aimed at maximizing facilitation for taxpayers. The collaboration between VCCI and the Tax Department, she said, is intended to help households not only “do what is right” but also “understand correctly,” so they can self-commit to sustainable compliance.

Tra stressed that tax compliance should become a daily habit in business operations. She said a transparent business environment and fair competition can only be formed when business owners understand that paying taxes on time contributes to the state budget, social development, and their own reputation.

Six notes for household businesses when switching to tax declaration

From a tax advisory perspective, Nguyen Thanh Phuc, Chairman of the Board of Members of Vietnam Mỹ Law and Accounting Group, said tax policy is currently clearer, easier to understand, and more transparent than before. He noted that while the household business segment is among the latest to access the new tax policy, it is not complex and is becoming easier, reflecting the policy direction and current support for household businesses.

Phuc highlighted a common issue: some household businesses mix personal and business accounts. He advised households to open a bank account in the name of the household business and use a separate QR code for that account. This, he said, helps clearly separate revenue and reduces the need to prove or justify personal income to tax authorities. He recommended informing the tax authority of the revenue-receiving account within April 2026.

He also advised households to determine which revenue group they belong to so they can declare correctly. For larger household businesses such as grocery stores or e-commerce, he said the high frequency of sales makes manual invoicing impractical and increases the risk of timing errors. “Because invoicing at the wrong time can incur penalties, households should immediately use integrated sales management software with automatic electronic invoicing to ensure safety and absolute accuracy,” Phuc recommended. He added that households should choose an appropriate accounting regime depending on their scale and tax calculation method.

In conclusion, Phuc outlined six points for households to remember for 2026: identify which revenue group they belong to; keep bookkeeping in the correct template; issue invoices to avoid penalties; record daily revenue; inform tax authorities of the bank account; and declare taxes on time (monthly or quarterly).

“During this period, households should not seek to hide revenue. They should ‘comply, not exploit’. When financial and tax transparency is achieved, we can manage household businesses more systematically, resolve stock and near-expiry issues, and know the real profitability,” Phuc advised.

The seminar also emphasized encouraging voluntary compliance by households with electronic invoicing policy rather than relying on administrative pressure.