Guidance on tax declarations for household businesses as the taxable revenue threshold rises to VND 1 billion per year

Reader's question

Under the new regulations, the taxable revenue threshold for household businesses has been raised from VND 500 million/year to VND 1 billion/year. However, many household businesses with revenue between VND 500 million and under VND 1 billion/year already declared and filed their Q1 tax returns under the old rules before the new policy took effect. The reader (Hong Tieu Ngoc) requested specific guidance on five issues.

Question 1: Must businesses continue filing quarterly returns from Q2 onward?

Pursuant to Clause 1, Article 8 of Decree 68/2026/ND-CP (as amended and supplemented by Decree 141/2026/ND-CP):

Where a household business or individual business self-determines its annual revenue from production, business of goods, or services to be VND 1 billion or less, the household business/individual business shall notify the tax authority of its actual revenue arising during the year no later than January 31 of the following calendar year.

Accordingly, household businesses with annual revenue between VND 500 million and under VND 1 billion that already filed a Q1 return under the old rules do not need to continue filing quarterly tax returns from the Q2 filing period onward. They only need to notify the tax authority of their actual revenue for the year no later than January 31 of the following calendar year.

Question 2: Can Q1 tax amounts already assessed/paid under the old threshold be adjusted, offset, or refunded?

Pursuant to Clause 2, Article 12 of Decree 68/2026/ND-CP (as amended and supplemented by Decree 141/2026/ND-CP): where a household business or individual business has paid value-added tax or personal income tax on business activities but its actual annual revenue is VND 1 billion or less, the overpaid tax amount shall be offset or refunded-cum-offset against state budget collections in accordance with tax administration law.

Accordingly:

• If a household business self-determines annual revenue under VND 1 billion, has filed a return with tax payable for Q1, but has not yet paid the tax into the state budget: it should contact its directly managing tax office for guidance.
• If a household business self-determines annual revenue under VND 1 billion, has tax payable for Q1, and has already paid that tax: if total annual revenue remains under VND 1 billion by year-end, the business may request a refund of the overpaid amount under the Law on Tax Administration.

Question 3: How will local tax authorities update and adjust tax obligations to ensure nationwide consistency?

The responding authority (Ca Mau Provincial Tax Department) stated that the question as posed does not contain specific content, and Ca Mau Provincial Tax Department has no basis to answer the reader on this point.

Question 4: Must businesses under VND 1 billion revenue that suspended e-invoices from Q2/2026 still file Q2 and subsequent quarterly returns?

Pursuant to Clause 1, Article 3; Clause 1, Article 4; and Point a, Clause 1, Article 8 of Decree 68/2026/ND-CP (as amended and supplemented by Decree 141/2026/ND-CP):

• Household businesses/individual businesses engaged in production or business with annual revenue of VND 1 billion or less are not subject to value-added tax.
• Resident individuals engaged in production or business (including individuals registering to establish a household business, or persons authorized by household members to act as the household business representative) with annual revenue of VND 1 billion or less are not required to pay personal income tax.
• Where a household business/individual business self-determines annual revenue from production, business of goods, or services to be VND 1 billion or less, it shall notify the tax authority of actual revenue for the year no later than January 31 of the following calendar year.

Based on the above, a household business with revenue under VND 1 billion/year that is not subject to VAT/PIT but had previously used e-invoices, and has since notified suspension of e-invoice use from Q2/2026 under the new regulations, does not need to continue filing quarterly VAT and personal income tax returns for Q2/2026 and subsequent quarters, provided its annual revenue does not exceed the VND 1 billion threshold and it is not otherwise required to file under other tax laws. The business only needs to notify actual revenue for the year to the tax authority no later than January 31 of the following calendar year.

Question 5: For businesses with revenue of VND 1 billion/year or less that voluntarily register for e-invoices, is tax declared annually or quarterly?

Pursuant to Point a, Clause 1, and Clause 5, Article 8 of Decree 68/2026/ND-CP (as amended and supplemented by Decree 141/2026/ND-CP):

• Where a household business/individual business self-determines annual revenue from production, business of goods, or services to be VND 1 billion or less, it shall notify the tax authority of actual revenue for the year no later than January 31 of the following calendar year.
• Where a household business/individual business with annual revenue of VND 1 billion or less meets the conditions and wishes to use e-invoices, it may register to use tax-authority-coded e-invoices or e-invoices generated from cash registers with data connections to the tax authority.

Based on the above, where a household business determines its revenue to be VND 1 billion/year or less, is not subject to mandatory e-invoice use, but voluntarily registers to use e-invoices provided it meets the data-connection conditions with the tax authority, the business may apply to register e-invoice use with the tax authority. Tax declaration is determined to be done annually for household businesses with revenue of VND 1 billion/year or less: they notify the tax authority of actual revenue for the year no later than January 31 of the following calendar year.

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Answered by Ca Mau Provincial Tax Department for reader Hong Tieu Ngoc.