The Ministry of Finance is collecting feedback on a draft decree that sets out how household businesses and individual business operators will declare, calculate and pay taxes, as well as how they will use e-invoices.

 

This is the first decree drafted exclusively for this group, marking a shift from the current approach under the Law on Tax Administration.

 

Under the proposal, household and individual businesses with annual revenue of VNĐ1 billion (around US$37,000) or more would be required to use e-invoices with a tax authority code or invoices generated from cash registers connected to the tax authority’s database, in line with Decree 70.

 

Those earning less than VNĐ1 billion a year would not be subject to this requirement.

 

Businesses that meet the necessary IT conditions and wish to use e-invoices would receive support from tax authorities in registering for coded e-invoices or invoices generated from connected cash registers.

 

If they do not register but need to issue e-invoices, they must declare and pay tax before receiving a coded invoice from the tax authority for each transaction.

 

From January 1, 2026, household and individual businesses must determine their own tax obligations based on their actual annual revenue. They will be responsible for classifying themselves into groups such as non-taxable, exempt from tax payment, taxable or required to pay tax under the laws on value-added tax (VAT) and personal income tax (PIT).

 

Those subject to VAT and PIT will also calculate and declare taxes on their own. VAT declarations will be filed monthly or quarterly, while PIT declarations based on revenue multiplied by the tax rate will follow the quarterly VAT schedule. Those paying PIT on taxable income – revenue minus expenses — will make annual payments no later than January 21 of the following year.

 

For businesses that use e-invoices or invoices generated from connected cash registers, the tax authority’s IT system will automatically create suggested tax declarations. These suggestions will be generated from e-invoice data, the tax authority’s management database and other official data sources to support taxpayers in calculating their liabilities.

 

Businesses that determine they are not subject to VAT and do not have to pay PIT must submit an annual revenue declaration by January 31 of the following year.

 

The draft groups taxpayers into two categories for VAT, PIT, special consumption tax, natural resources tax and environmental protection tax. Those using coded e-invoices will have their payable amounts automatically supported by the tax authority’s management system, which will also update their tax data. Those not using e-invoices will calculate their own tax payments.

 

For environmental protection fees and other obligations, household and individual businesses must determine the amounts themselves in line with regulations.

 

The draft also sets payment deadlines. Tax must be paid no later than the final day of the tax declaration deadline. If taxpayers submit supplementary declarations, the payment deadline will follow the deadline for the revised tax dossier. — VNS