1. LEGAL FRAMEWORK
- Law on Value-Added Tax No. 48/2024/QH15, as amended and supplemented by Law No. 149/2025/QH15
- Law on Personal Income Tax No. 109/2025/QH15
- Law on Tax Administration No. 108/2025/QH15
- Circular No. 152/2025/TT-BTC issued by the Ministry of Finance
- Draft Government Decree prescribing tax policies and tax administration applicable to household businesses and individual business operators
- Draft Circular of the Ministry of Finance providing guidance on tax dossiers, procedures, and tax administration applicable to household businesses and individual business operators
2. TAX CALCULATION METHODS APPLICABLE TO HOUSEHOLD BUSINESSES AND INDIVIDUAL BUSINESS OPERATORS
2.1 Revenue Thresholds and Value-Added Tax (VAT) and Personal Income Tax (PIT) Obligations
| Revenue Thresholds | VAT | PIT |
| Below VND 500 million | Not subject to VAT | Not subject to PIT |
| Over VND 500 million up to VND 3 billion | Percentage (%) × Revenue | Option: – PIT rate × taxable revenue (i.e. the portion exceeding VND 500 million); or – 15% × taxable income (= revenue – deductible expenses) |
| Over VND 3 billion up to VND 50 billion | Percentage (%) × Revenue | 17% × taxable income (= revenue – deductible expenses) |
| Over VND 50 billion | Percentage (%) × Revenue | 20% × taxable income (= revenue – deductible expenses) |
2.2 Summary of VAT Rates and PIT Rates (Applicable to Household Businesses/ Individual Business Operators Electing the Revenue-Based Taxation Method)
| Business Activities | VAT Rate | PIT Rate |
| Distribution and trading of goods | 1% | 0.5% |
| Services and construction activities without supply of raw materials – For asset leasing activities, insurance agency services, multi-level marketing sales agency services: PIT rate of 5% | 5% | 2% |
| Manufacturing, transportation, services associated with goods; construction activities with supply of raw materials | 3% | 1.5% |
| Other business activities | 2% | 1% |
2.3 Taxable Revenue for Personal Income Tax Purposes
Taxable revenue is defined as the total proceeds derived from the sale of goods, processing activities, and provision of services, including subsidies, surcharges, and additional charges to which the individual business operator is entitled, irrespective of whether such amounts have been actually collected. Taxable revenue shall include, but is not limited to, the following:
- Bonuses and incentive payments received;
- Amounts received from sales performance support schemes, promotional programs, and cash discounts;
- Financial and non-financial support received;
- Subsidies, surcharges, mark-ups, and additional fees collected in accordance with regulations (excluding trade discounts, sales allowances, and sales returns);
- Compensation for breach of contract and other compensation related to business activities;
- Other revenues earned by the individual business operator, regardless of whether payment has been received.
2.4 Deductible Expenses
Deductible expenses are actual expenses incurred in connection with production and business activities, which are supported by valid invoices and supporting documents in accordance with regulations on invoices and documents, accounting regulations, and non-cash payment documentation requirements for single payments with a value of VND 5 million or more, as prescribed under the value-added tax regulations.
3. ELECTRONIC INVOICING AND TAX DECLARATION DEADLINES
| Revenue | E-invoices | Tax Declatation Deadlines |
| Revenue ≤ VND 500 million | Not required | – Once per year (by 31 January of the following calendar year) – Specifically for FY 2026: twice per year (by 31 July 2026 and 31 January 2027) – In case actual revenue exceeds VND 500 million: tax shall be declared and paid from the quarter in which revenue exceeds VND 500 million |
| VND 500 million < Revenue ≤ VND 3 billion | VND 500 million < Revenue < VND 1 billion: Use of e-invoices is not mandatory. Where statutory conditions are met and there is a demand, taxpayers may register for the use of e-invoices; alternatively, e-invoices may be issued by the tax authority on a per-transaction basis upon request. Revenue ≥ VND 1 billion: Mandatory use of e-invoices. | Quarterly tax declaration In cases where PIT is determined based on taxable income: provisional PIT shall be declared and paid quarterly together with the VAT return; annual PIT finalization shall be filed no later than 31 March of the following calendar year |
| VND 3 billion < Revenue ≤ VND 50 billion | VAT shall be declared and paid on a quarterly basis; provisional PIT shall be declared and paid quarterly together with the VAT return; annual PIT finalization shall be filed no later than 31 March of the following calendar year | |
| Revenue > VND 50 billion | VAT shall be declared and paid on a monthly basis; provisional PIT shall be declared and paid monthly together with the VAT return; annual PIT finalization shall be filed no later than 31 March of the following calendar year |
4. ACOUNTING REGIME APPLICABLE TO HOUSEHOLD BUSINESSES AND INDIVIDUAL BUSINESS OPERATORS IN ACCORDANCE WITH CIRCULAR NO. 152/2025/TT-BTC
| Revenue Threshold | Accounting Books | Prescribed Accounting Book Forms |
| Revenue ≤ VND 500 million | Sales Revenue Book for Goods and Service Provision | S1a-HKD |
| VAT and PIT determined based on a percentage (%) of revenue | Sales Revenue Book for Goods and Service Provision | S2a-HKD |
| VAT determined based on a percentage (%) of revenue and PIT determined based on taxable income | – Sales Revenue Book for Goods and Service Provision – Detailed Revenue and Expense Book – Detailed Book of Raw Materials, Tools, and Goods – Cash Book | – S2b-HKD – S2c-HKD – S2d-HKD – S2e-HKD |
