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break through in the new era. Based on these laws and draft laws, the group identifies
factors affecting tax accounting in large business households.
2.1. Scope of tax accounting for large household businesses today
Tax accounting is a crucial aspect of large household business's accounting
operations. Moreover, tax accounting has the largest proportion of accounting work in
large household businesses. Tax accounting helps these businesses ensure compliance
with current tax and accounting laws in the digital economy. Accurately identifying
applicable entities and organizing tax accounting work scientifically and transparently not
only guarantees accurate recording and reflection of tax data but also supports business
owners in making effective decisions, enhancing tax transparency and competitiveness,
and ensuring stable and sustainable operations.
According to Circular No. 152/2025/TT-BTC , there are two notable new points
regarding accounting for large household businesses in general and tax accounting for
large household businesses in particular:
Flexible storage of accounting books and documents in electronic or paper form.
According to regulations, the representative of a business household or individual
business owner may keep their own accounting books, or appoint an accountant, or hire
accounting services for the business household or individual business owner in
accordance with the law. Regarding storage, business households and individual business
owners may choose to store accounting documents (invoices, accounting vouchers,
accounting books, etc.) electronically or in paper form. The minimum retention period for
accounting documents of business households and individual business owners is 5 years;
for invoices, the retention period is in accordance with tax laws. Furthermore, in addition
to the accounting books guided in this Circular, business households and individual
business owners may add more accounting books or modify the forms of accounting
books to suit the needs of the unit.
Accounting regulations for large business households are categorized separately. If
a large business household pays VAT and personal income tax based on a percentage of
revenue, it will use a sales revenue ledger (form S2a-HKD) to record sales revenue. This
ledger is opened to record sales revenue for goods and services by business category
group with the same percentage for VAT calculation or the same tax rate for personal
income tax calculation. For business households or individuals with multiple business
categories, this ledger can be opened for each category with the same percentage for VAT
calculation or the same tax rate for personal income tax calculation. If the tax authorities
provide VAT and personal income tax payment data, the business household or individual
will use this ledger to track and reconcile the VAT and personal income tax payable with
the tax authorities. Accounting documents used are invoices and other supporting
documents to determine and declare revenue in accordance with tax laws. Meanwhile,
for household businesses and individual business owners paying VAT at a percentage rate
on revenue and personal income tax on taxable income, the Circular stipulates that
household businesses and individual business owners must use accounting books
according to the following categories: Sales Revenue Book (Form S2b-HKD); Detailed
Revenue and Expense Book (Form S2c-HKD); Detailed Material, Tool, Product, and Goods
Book (Form S2d-HKD); Detailed Cash Book (Form S2e-HKD). Simultaneously, accounting
documents for this group include invoices, lists of goods and services (for cases where
household businesses and individual business owners purchase goods and services from
sellers without VAT invoices or sales invoices), and other accounting documents as a basis

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