Household Business with Revenue Exceeding VND 3 Billion: Can It Continue Using the Percentage-of-Revenue Tax Method?
RegHub explainer by New MarketerLast updated:
Based on:Nghị định số 141/2026/NĐ-CP ngày 06/12/2026; Luật Thuế GTGT; Luật Quản lý thuế - Ministry of Finance
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The Ministry of Finance (through Tay Ninh Tax Department) provided guidance on VAT and PIT calculation methods for a household business registered in October 2025 that selected the percentage-of-revenue method from the start. If total 2026 revenue exceeds VND 3 billion by year-end, can the household business continue using this method? Per Decree 141/2026/NĐ-CP dated December 6, 2026 and the VAT and Tax Administration Laws: A household business that selected the percentage-of-revenue method in the previous year continues to apply this method for the entire 2026 tax year, even if revenue exceeds VND 3 billion during that year. Only from the following tax year must it consider switching to another method if conditions are met. The Tay Ninh Tax Department responded for Mr. Nguyen Van Hai's reference and implementation.
Question
A household business registered in October 2025, with Q4/2025 revenue exceeding VND 1.5 billion, declared and paid VAT and PIT using the percentage-of-revenue method. Q1/2026 revenue exceeded VND 2 billion, continuing with the percentage method. If total 2026 revenue exceeds VND 3 billion by year-end, can it continue using the percentage-of-revenue method for the remaining quarters (Q2, Q3, Q4) and for all of 2026?
Guidance Content (from images)
Per Article 1, Clause 1 of Decree 141/2026/NĐ-CP dated December 6, 2026:
Tax Calculation Method: A household business or individual business that has registered and applied the percentage-of-revenue method from the previous year continues to apply this method throughout the current tax year, even if annual revenue exceeds the VND 3 billion threshold during that year.
A change in tax calculation method is only considered from the following tax year, when the household business meets all conditions to apply an alternative method under applicable regulations.
Conclusion: The household business in question may continue to apply the percentage-of-revenue method for the entire 2026 tax year, including Q2, Q3, and Q4/2026.
The Tay Ninh Tax Department Sub-office 7 responded for Mr. Nguyen Van Hai's reference and implementation.