Business households may self-determine whether they are subject to tax
Business households and individual businesses will base their annual actual revenue on whether they are subject to tax and required to pay tax.
The Ministry of Finance is seeking feedback on a draft decree governing tax declaration, tax calculation and withholding, and the use of e-invoices by business households and individual businesses. The draft is the first to be developed specifically for tax administration of this group, separately from the current Law on Tax Administration.
Currently, the government applies a taxable revenue threshold for business households and individual businesses for value-added tax and personal income tax. The current threshold is VND 100 million and is expected to increase to VND 500 million under the government's proposal. Under the draft, from Jan. 1, 2026, business households and individual businesses will base their annual actual revenue on self-determining whether they are subject to tax and required to pay tax.
In cases where e-invoices with a tax authority code are used, the information system will support determining the payable amounts of value-added tax, personal income tax, special consumption tax, natural resource tax, and environmental protection tax, if any. The data will be updated for taxpayers. In cases where e-invoices are not used, business households and individual businesses will determine the tax payable themselves.
In principle, business households and individual businesses must accurately, honestly and fully declare all contents in tax declaration dossiers and amounts payable for each type of tax. They must calculate by themselves the amount of tax and other payments due, except where such amounts are determined by the tax authority. In cases where taxes have already been declared and paid on their behalf, taxpayers are not required to pay those amounts again.
Small traders do business at a market in Hanoi. Photo: Phuong Dung
Regarding the use of e-invoices, this rule remains the same as in Decree 70 and applies from mid-2025. Specifically, business households and individual businesses with annual revenue of VND 1 billion or more must use e-invoices with a tax authority code and e-invoices generated from cash registers connected to the tax authority.
Business households with annual revenue below VND 1 billion are not required to use this type of invoice, but are encouraged to do so if they meet information technology infrastructure conditions and have demand for use.
Regarding the implementation timeline, those subject to value-added tax will declare and pay monthly or quarterly. Personal income tax based on revenue will be filed quarterly, while tax calculated based on profit will be filed annually.
In cases where e-invoices or invoices generated from cash registers connected to the tax authority's data system are used, the information technology system will automatically generate suggested tax returns to support business households and individual businesses. If they determine on their own that they are not subject to tax, business households and individual businesses must declare revenue no later than Jan. 31 of the following year.
The tax payment deadline for business households and individual businesses is no later than the last day of the deadline for submitting tax declaration dossiers. In cases of supplementary declarations, the tax payment deadline is the tax declaration submission deadline for the tax period in which errors occurred.
The decree is expected to take effect on Jan. 1, 2026 — also the time when business households will officially stop using the presumptive tax method and switch to declaring and paying tax based on actual revenue. The Ministry of Finance says the declaration mechanism will help tax authorities accurately monitor actual revenue and limit budget revenue losses. It will also encourage business households to operate more transparently and professionally, helping them gradually improve accounting systems and financial transparency.
This would also contribute to greater equality among business entities, avoiding a situation in which large-scale business households receive more favorable treatment than small businesses. At the same time, business households would be encouraged to convert into enterprises to benefit from corporate accounting, credit and legal frameworks.
