Finance Minister warns: New tax policy causes uncertainty for companies!

Finance Minister warns: New tax policy causes uncertainty for companies!

On June 19, Finance Minister Nguyen Van Thang opened the National Assembly's question-and-answer session, where he discussed key issues related to the country's financial future. Minister Thang answered questions about abolishing the flat tax for business households and achieving a growth target of over 8% for this year. He made it clear that this was a demand that was intended to increase the participation of entrepreneurs in the political system.

A key issue was the introduction of electronic invoices, which became mandatory for around 37,000 households with an annual turnover of over VND 1 billion on June 1 with the entry into force of Decree 70/2025. Minister Thang stated that the Ministry of Finance is actively supporting companies in this implementation and so far no fines have been imposed on companies that had difficulty implementing during the transition period.

Concern about tax changes

During the meeting, delegates raised concerns about the abolition of the flat tax from 2026, which has already caused uncertainty for many business budgets. Minister Thang emphasized the need for credit and official development assistance to promote economic growth, especially given the current slowdown in domestic consumption, which accounts for 70% of GDP and is heavily influenced by declining purchasing power and consumer confidence.

Delegates also called for clear political solutions to support the private sector. Minister Thang also noted the difficulties faced by small and medium-sized enterprises in accessing capital and technology, and stressed the importance of companies revising their business plans and setting growth targets of at least 8%.

Regulation of consumption and tax policy

An increase in the special consumption tax has been temporarily suspended to provide financial relief for companies during this transition period. Minister Thang explained that the special consumption tax is intended to regulate consumption and promote public health. It was also emphasized that tax policy for traders should be made more transparent without making any changes to the existing tax rates.

At the international level, the introduction of mandatory e-invoicing is being pushed forward in Germany from January 1, 2025. This measure is intended to promote the digitalization of the German economy and simplify accounting processes. Invoices must be created in a structured electronic format to be valid.

From this point on, in Germany, invoices that do not meet the requirements for electronic invoices will be classified as “other invoices”. The regulation provides for exceptions for personal customers (B2C) and many tax-free sales, but individual conditions must also be observed here. Measures to prepare for e-invoicing aim to ensure comprehensive electronic processing of all invoices.

Compliance with these regulations will be very important for companies as they will need to be able to receive e-invoices from January next year. To ease the transition, other invoices may also be issued until December 31, 2026, while exceptions for certain sales limits apply until the end of 2027.

With the introduction of these measures, both Vietnam and Germany are striving to modernize their respective economic systems, which should not only simplify administration, but also contribute to strengthening the entrepreneurial basis.