Household Business Tax from 2026: No Lump-Sum, Thresholds, Invoices

At the start of 2026, the way household businesses pay tax changed from previous years: there is no longer a fixed lump-sum amount per month or per year as was familiar, but a move to self-declaration based on actual revenue. The revenue threshold for tax has also just been adjusted in mid-2026, so many owners easily confuse old figures with the figures now applied.

Quick answer: from 1 January 2026, household businesses no longer have lump-sum tax. Annual revenue of 1 billion VND or less is not subject to value added tax (VAT) or personal income tax (PIT), a threshold that has been raised from the original 500 million VND. Above 1 billion VND, the household must both declare tax as a percentage of revenue (depending on business sector group) and use e-invoices with a tax authority code. Above 3 billion VND, it moves to declaration on revenue minus expenses. For sales through e-commerce platforms with a payment function, most of the tax has already been withheld and paid by the platform.

Can household businesses still pay lump-sum tax?

No. Under clause 6, Article 10 of Resolution No. 198/2025/QH15, household businesses and individual business persons no longer use the lump-sum tax method from 1 January 2026. This is the biggest change: households move from “paying a fixed amount set by the tax authority” to “self-declaring and taking responsibility for actual revenue”, under the Law on Tax Administration.

On 5 March 2026, Decree No. 68/2026/NĐ-CP was issued, setting out the tax policy and tax administration applicable to household businesses and individual business persons in the period without lump-sum tax, with an initial tax-exempt revenue threshold of 500 million VND per year.

This threshold has changed. On 29 April 2026, the Government issued Decree No. 141/2026/NĐ-CP amending and supplementing Decree No. 68/2026/NĐ-CP, applied from 1 January 2026 (the same time as Decree No. 68/2026/NĐ-CP, effectively replacing the old threshold from the start). The most important change: raising the VAT and PIT exemption threshold from 500 million VND to 1 billion VND per year, and merging this threshold with the mandatory e-invoice threshold — previously two separate thresholds (500 million VND and 1 billion VND), now only one main threshold of 1 billion VND. The content below is presented according to the amended threshold now in application.

At what revenue must tax be paid?

Under Articles 3 and 4 of Decree No. 68/2026/NĐ-CP (as amended by Decree No. 141/2026/NĐ-CP), the thresholds divide into three zones:

The 1 billion VND threshold is now the most important boundary: below it, no VAT or PIT arises and e-invoices are not yet mandatory, but the household must still carry out the obligation to notify and declare revenue as guided by the tax authority — it is not the case that “below the threshold, there is nothing to do”. Above the 1 billion VND threshold, the household both incurs tax obligations and must use e-invoices — these two obligations now arise at the same time, no longer separated as in the original regulation.

Above 1 billion VND up to 3 billion VND: how is tax calculated?

For a household with revenue above 1 billion VND up to 3 billion VND per year, the two taxes are calculated differently:

• VAT: still calculated at a fixed percentage of revenue, by business sector group — there is no choice of another method.
• PIT: the household may choose between two methods: percentage of revenue (by business sector group), or declaration on profit (revenue minus deductible expenses). The PIT method chosen should be kept stable for a period as guided by the tax authority, and not switched back and forth at will between periods.

For the percentage-of-revenue method (applied to VAT in all cases, and to PIT if the household chooses this method), Decree No. 68/2026/NĐ-CP divides by business sector group. The common groups, by VAT rate (calculated directly on revenue):

PIT is calculated separately at the rate of each sector group, lower than the corresponding VAT rate. Some special groups such as property leasing, insurance agents, lottery agents, multi-level marketing agents and digital content business apply separate rates under Article 4 of Decree No. 68/2026/NĐ-CP — households in these groups should check the exact provision against their own specific dossier, or ask an accounting partner to look it up, to avoid applying the wrong group.

For a household business operating in several lines at the same time, revenue needs to be separated by group to calculate correctly, and not all put into the group with the lowest rate.

Above 3 billion VND: how is tax calculated differently?

A household business with annual revenue above 3 billion VND must apply the method of declaration on revenue minus deductible expenses for PIT (similar to how an enterprise’s taxable income is determined), and can no longer choose the percentage-of-revenue method as the 1–3 billion VND group can. For VAT only, tax is still calculated at a fixed percentage of revenue as at other revenue levels. This is a major difference in record-keeping obligations: the household needs to retain sufficient valid invoices and expense documents to be deducted when determining PIT taxable income.

At this scale, a household business should also consider converting to a company, because the level of bookkeeping is nearly equivalent to that of an enterprise while it still bears liability with all its personal assets. See also the article Household Business to Company: Dossier, Tax and Next Steps.

When are e-invoices mandatory?

Before the amendment by Decree No. 141/2026/NĐ-CP, the e-invoice threshold (1 billion VND) and the taxable threshold (500 million VND) were two separate thresholds. After the amendment, the two have merged into one: a household business or individual business person with annual revenue above 1 billion VND must use e-invoices with a tax authority code, or e-invoices generated from cash registers connected to transmit data to the tax authority — exactly equal to the threshold at which VAT and PIT begin to apply.

The deadline to register to use e-invoices: within 30 days from the last day of the tax period in which cumulative revenue in the year exceeds the 1 billion VND threshold — this also applies to a newly established household whose prior-year revenue had not reached the threshold but which exceeds it during the year.

The two main thresholds to remember now:

• Above 1 billion VND: VAT and PIT begin to apply, and e-invoices with a code become mandatory.
• Above 3 billion VND: the tax calculation method must switch to declaration with expense deduction.

A household with revenue of 700 million VND currently incurs no VAT or PIT and is not yet required to use e-invoices, unless it chooses to register in order to issue invoices to customers who need to deduct tax.

How is tax paid when selling through e-commerce platforms?

Decree No. 252/2026/NĐ-CP (effective from 1 July 2026) provides that the organization managing an e-commerce trading platform or digital platform with an online ordering function and a payment function must withhold, declare and pay tax on behalf of household businesses and individual business persons as soon as the transaction is successfully confirmed and payment is accepted.

Two cases need to be distinguished:

• A platform with both ordering and payment functions (for example, large e-commerce platforms with shopping carts and payment on the platform): the platform withholds, declares and pays VAT and PIT on behalf of the seller for each transaction. A household or individual for whom tax has been withheld, declared and paid does not have to declare and pay again for that revenue.
• A platform that only lists and connects, with ordering or payment carried out outside the platform: the household still self-declares and pays tax as provided in Decree No. 68/2026/NĐ-CP, like ordinary sales revenue.

Whether or not withheld by the platform, revenue from platform sales must still be added together with revenue from the store or other points of sale to determine whether the household exceeds the 1 billion VND threshold (taxable and e-invoices mandatory) or the 3 billion VND threshold (change of tax calculation method). Withholding on the platform does not replace the obligation to notify or declare the household’s total revenue.

Common misunderstandings

• Waiting for “this year’s lump-sum amount” as in previous years: lump-sum tax ended on 1 January 2026. There is no longer an annual assessed amount to wait for; the household needs to record actual revenue proactively and declare on time.
• Misremembering the tax exemption threshold as 500 million VND: this was the original threshold of Decree No. 68/2026/NĐ-CP, which Decree No. 141/2026/NĐ-CP raised to 1 billion VND, applied from 1 January 2026. Old documents and articles that have not been updated still state the 500 million VND threshold — check the issuance date before using them.
• Thinking revenue below 1 billion VND means “nothing to do”: there is still an obligation to notify and declare revenue as guided by the tax authority, even if no tax amount arises to be paid.
• Putting all business lines into the lowest-rate group: a household operating in several lines must separate revenue into the correct groups to apply the rates, to avoid being assessed back taxes when the tax authority cross-checks.
• Thinking that once the platform has withheld, revenue need not be aggregated: withholding on the platform only handles the tax of that transaction; it does not remove the obligation to aggregate all revenue to assess the remaining thresholds.

How Thái Tín helps with household business tax

Thái Tín is the coordinating contact that helps household businesses understand their current tax obligations correctly and connects them to the right people to carry them out:

• A preliminary check of revenue, business lines and sales channels (on-site, e-commerce platforms) to determine which threshold the household is at.
• Clear explanations of the 1 billion VND and 3 billion VND thresholds against the household’s actual dossier, so the owner can decide how to proceed.
• Connecting accounting and tax partners to carry out declarations, e-invoice registration and finalization under current regulations.
• For households considering converting to a company for tax or invoice reasons, support in preparing the dossier in the right order; see also the article Household Business to Company: Dossier, Tax and Next Steps.

What to prepare right away

• Record actual revenue by month, by business line, and by sales channel (on-site, e-commerce platforms).
• Reconcile statements from e-commerce platforms with the sales book, to know which portion has been withheld, declared and paid on the household’s behalf.
• Track cumulative revenue in the year to know when to register for e-invoices or change the tax calculation method.
• Keep invoices and expense documents if revenue is approaching 3 billion VND, to prepare for the expense-deduction declaration method.

Household business tax regulations are in a period of rapid change — the revenue threshold alone was amended once in 2026. Households should cross-check against the original documents or their directly managing tax authority before deciding on major matters such as registering invoices or converting to a company.

Questions and answers

Related articles

Household Business Household Business to Company: Dossier, Tax and Next Steps Household business Household Businesses Hiring Employees: Contracts and Social Insurance Accounting and Tax What a Newly Established Enterprise Needs to Do on Tax and Accounting