From January 1st, 2026, the tax landscape for household businesses in Vietnam will undergo landmark changes. The gradual abolition of lump-sum taxes and the widespread application of declaration-based taxes are causing concern among millions of household business owners.
After 15 days of implementing the tax declaration system, what difficulties are business households facing, and what bottlenecks need to be addressed by the tax authorities? These questions will be directly answered by the Tax Department at the workshop 'Implementing the tax declaration system: What should business households pay attention to?'. This article will help you clarify the roadmap, important considerations, and how to overcome practical difficulties.
The biggest obstacle for household businesses today.
Switching from a "lump-sum" to a "detailed costing" system is not just about changing numbers, but about changing an entire business practice.
- The pressure of manual accounting: The majority of business owners, especially older small traders, are accustomed to manual record-keeping or no record-keeping at all. Having to implement electronic accounting is a technical "nightmare."
- Risk of expenses without invoices: With declared taxes, taxable profit depends on input documents. However, household businesses often import small quantities of goods, fresh produce from local markets, etc., which makes it very difficult to obtain official tax invoices.
- Increased operating costs: To comply with the law, sole proprietorships must invest in accounting software, digital signatures, computers, and may have to hire additional accountants or tax agents.
Key new developments from 2026
Based on the amended Personal Income Tax Law and the latest guidelines, business households need to pay special attention to the following:
Raise the taxable revenue threshold to 500 million VND/year.
This is the biggest good news. From 2026, business households with annual revenue under 500 million VND will be exempt from tax (the previous threshold was over 100 million VND). This will help reduce pressure on small businesses.
Entities required to file tax returns
Large-scale businesses (in terms of revenue and workforce) or those that choose a declaration method will have to do the following:
- Open accounting books (according to Circular 88/2021/TT-BTC).
- Issue electronic invoices for each sale or a consolidated invoice at the end of the day (depending on the industry).
- File your tax returns monthly or quarterly.
4 "Golden" Tips for Properly Filing Tax Returns
To avoid administrative penalties or tax assessments by the tax authorities, business households need to prepare:
Categorize revenue for invoicing purposes.
Retail businesses selling consumer goods and fresh food at markets need clarification regarding invoice issuance:
- If the customer is an individual and does not request an invoice: Sales data can be compiled at the end of the day.
- If requested by the customer: An electronic invoice must be issued directly from the cash register or software.
Focus on input documents (Deductible expenses)
For households with annual revenue of 1-3 billion VND, personal income tax will be calculated based on (Revenue – Expenses). Therefore, all expenses, from rent and utilities to invoices for goods purchased, must be carefully documented. Without supporting documents, those expenses will not be deductible.
Separate bank accounts.
The tax authorities recommend that business households have a separate bank account for business operations, distinct from personal or family spending accounts. This makes it easier to reconcile cash flow and ensure transparency in tax declarations.
Prepare the technological infrastructure.
Household businesses need to invest in:
- Digital signature (Token/SmartSign).
- Electronic invoicing software.
- Simple accounting software specifically designed for sole proprietorships.
What are the solutions for small businesses that are not tech-savvy?
If you find doing it yourself too complicated, there are two optimal options:
- Utilize the services of a Tax Agent: This is a specialized agency that assists business owners with bookkeeping and tax filing at a lower cost than hiring a private accountant.
- Participate in training sessions organized by the Tax Department: Regularly monitor announcements from your local tax authority to receive hands-on guidance on generating electronic invoices from point-of-sale (POS) systems.
Conclude
The transition to a tax-based system is essential in the process of increasing transparency in the economy. Although there will be many difficulties initially, proper implementation will help businesses avoid legal risks later on and easily access bank loans thanks to clean financial records.
Still have questions about tax calculation or filing procedures? Contact MAN – Master Accountant Network for detailed guidance!
Contact information MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
Source: Tuoi Tre Newspaper
MAN Editorial Board – Master Accountant Network
