--- title: "Household Business Tax Vietnam 2026: the VND 1bn Rule" description: "Lump-sum tax for household businesses ended on 1 January 2026. The tax-free threshold is now VND 1 billion a year. The four revenue groups, the maths and the deadlines." canonical: https://sosachsang.thenexova.cloud/en/blog/household-business-tax-vietnam-2026 lang: en last-updated: 2026-10-04 --- 12/03 Tax # Household business tax in Vietnam 2026: who files, how much, when > Lump-sum tax for household businesses ended on 1 January 2026. The tax-free threshold is now VND 1 billion a year. The four revenue groups, the maths and the deadlines. Nguồn / Source: https://sosachsang.thenexova.cloud/en/blog/household-business-tax-vietnam-2026 [!**Nguyễn Thị Hạnh**Chief accountant, founder](/en/team/nguyen-thi-hanh)Published 12 Mar 2026Updated 4 Oct 20268 min read ![A woman sits looking at her phone in a street stall stacked with foam boxes, fruit and hanging goods](/_astro/blog-4.DyOgRa6Y_Z2uJqff.jpg) In this article 1. [Why this matters if you are not Vietnamese](#why-this-matters-if-you-are-not-vietnamese) 2. [What changed, in order](#what-changed-in-order) 3. [Find your group from last year’s revenue](#find-your-group-from-last-years-revenue) 4. [Three shops, worked through](#three-shops-worked-through) 5. [Which form, and where](#which-form-and-where) 6. [The 2026 deadlines](#the-2026-deadlines) 7. [What disappeared, what is new](#what-disappeared-what-is-new) 8. [Crossing VND 1 billion halfway through the year](#crossing-vnd-1-billion-halfway-through-the-year) 9. [Where people usually slip](#where-people-usually-slip) 10. [When an accountant is worth it](#when-an-accountant-is-worth-it) 11. [Sources and update](#sources-and-update) Since 1 January 2026, household businesses in Vietnam no longer pay a fixed lump-sum tax. Every household declares its own revenue and pays its own tax. If annual revenue is under VND 1 billion, there is no VAT and no personal income tax (PIT) to pay; you only report revenue once a year and keep a sales book. From VND 1 billion up, you file every quarter (monthly above VND 50 billion), pay VAT at a fixed percentage of revenue for your sector, and pay PIT under one of two methods depending on your size. If you read older articles, you will see VND 500 million as the threshold. That figure was replaced in April and applies to no part of 2026. ## Why this matters if you are not Vietnamese A household business (hộ kinh doanh) is the simplest way to trade in Vietnam: a café, a shop stall, a small guesthouse. It is registered to a Vietnamese individual, so foreigners usually meet it in one of three ways: - Your Vietnamese partner or family member holds the registration and you help run the shop. - You own a company and buy from household suppliers, and you now need proper invoices from them. - You are deciding whether your family business should stay a household or become a limited company. In all three cases the 2026 rules change what paperwork exists and who is responsible for it. The tax account is in the registered owner’s name, and the owner signs every return. ## What changed, in order **Decree 68/2026/ND-CP** (Nghị định 68/2026/NĐ-CP, 5 March 2026) abolished lump-sum tax and set up self-declaration. When first issued it put the tax-free threshold at VND 500 million a year. **Decree 141/2026/ND-CP** (29 April 2026) raised that threshold to VND 1 billion, backdated to 1 January 2026\. The whole of 2026 is measured against VND 1 billion. We first published this article in March under the old figure. Every table and example below has since been redone at VND 1 billion. “Revenue” means total business takings for the year: sales of goods and services plus other business income. Cash and bank transfers both count, as do online sales. A household open for less than 12 months annualises: actual revenue divided by months open, times 12. ## Find your group from last year’s revenue | Group | Annual revenue | VAT | PIT | Filing | | ----- | --------------------------------- | ------------------ | --------------------------------------------- | -------------------------- | | 1 | Under VND 1 billion | None | None | Revenue notice once a year | | 2 | VND 1 billion to under 3 billion | Sector % × revenue | Choose: sector % of revenue, or 15% of profit | Quarterly | | 3 | VND 3 billion to under 50 billion | Sector % × revenue | 17% of profit, compulsory | Quarterly | | 4 | Over VND 50 billion | Sector % × revenue | 20% of profit, compulsory | Monthly | “Profit” here means revenue minus documented costs: stock, materials, rent, wages. If you cannot show invoices or receipts for a cost, it does not count. The sector percentages used in 2026 guidance are: trading goods 1% VAT and 0.5% PIT; services 5% and 2%; manufacturing, transport, food and drink and services tied to goods 3% and 1.5%; other activities 2% and 1%. A shop that both sells goods and provides a service splits its revenue by line. For group 2 households on the percentage method, current guidance applies PIT only to revenue above VND 1 billion. We are still checking how the excess is calculated after Decree 141 against the original text, so we recalculate every file before it goes in. ## Three shops, worked through ### A bánh mì stall in Đa Kao: group 1 About VND 1.7 million a day, open every day, roughly VND 620 million a year. Under VND 1 billion, so no VAT and no PIT. What the stall still does in 2026: - Keeps a sales book (form S1a-HKD under Circular 152/2025/TT-BTC). One line a day is enough. - Sends a revenue notice for 2026 on form 01/TKN-CNKD by 31 January 2027\. That is a Sunday, so the real deadline is Monday 1 February 2027. - Watches cumulative revenue. If the year-to-date total reaches VND 1 billion, it starts filing from that quarter. Under the old system this stall paid about VND 1.2 million a month in lump-sum tax. In 2026 it pays nothing, in exchange for keeping the book. ### A fabric shop in Bến Thành market: group 2 Curtain and áo dài fabric, VND 2.4 billion revenue in 2025\. Group 2, trading goods. VAT: 2.4 billion × 1% = VND 24 million for the year, about VND 6 million a quarter. For PIT the shop picks one method: | Method | Calculation | PIT for the year | | ----------------------------------------- | -------------------------------------------------------------------------------- | ---------------- | | Percentage on revenue above VND 1 billion | (2.4bn - 1bn) × 0.5% | VND 7 million | | 15% of profit | 2.4bn revenue, less 1.95bn stock, less 0.25bn rent and staff, leaves 0.2bn × 15% | VND 30 million | Here the percentage method is far cheaper and needs no proof of costs. A shop with thin margins or a loss-making year could come out ahead on the profit method. The choice should follow real books, not a feeling. Because revenue is over VND 1 billion, the shop must also issue e-invoices, either coded by the tax authority or generated from a cash register linked to it. See [e-invoices for household businesses](/en/blog/e-invoices-household-business-2026). ### A phone shop at VND 6 billion: group 3 VAT: 6 billion × 1% = VND 60 million. PIT is compulsory on profit at 17%. If documented costs are VND 5.5 billion, profit is VND 0.5 billion and PIT is VND 85 million. Every phone bought without an invoice is a cost that cannot be deducted, and the 17% lands on a bigger number. ## Which form, and where Groups 2, 3 and 4 file form 01/CNKD (the tax return for household and individual businesses) under Circular 18/2026/TT-BTC, through the e-tax portal or the eTax Mobile app. We have a separate walkthrough: [filing household tax on eTax Mobile](/en/blog/filing-household-tax-on-etax-mobile). Group 1 sends form 01/TKN-CNKD (the annual revenue notice) instead. Details in [household businesses under VND 1 billion](/en/blog/household-business-under-1-billion). Filing the return and paying the tax are two separate steps. A return marked “received” does not mean the money has gone. ## The 2026 deadlines The Law on Tax Administration 2025 took effect on 1 July 2026 and kept the general deadlines: quarterly returns by the last day of the first month of the next quarter, monthly returns by the 20th of the next month. A deadline that falls on a weekend or public holiday moves to the next working day. | What | Statutory date | Actual date | | ---------------------------------------------- | ------------------ | --------------- | | Q1 2026 return and payment (groups 2, 3) | 30 Apr 2026 | Mon 4 May 2026 | | Q2 2026 | 31 Jul 2026 | Fri 31 Jul 2026 | | Q3 2026 | 31 Oct 2026 | Mon 2 Nov 2026 | | Q4 2026 | 31 Jan 2027 | Mon 1 Feb 2027 | | Group 1: 2026 revenue notice | 31 Jan 2027 | Mon 1 Feb 2027 | | Opened in the first half of 2026: extra notice | 31 Jul 2026 | 31 Jul 2026 | | Group 4: monthly VAT | 20th of next month | See calendar | Groups 3 and 4 pay PIT on profit, so there is also a year-end settlement; the general deadline for annual files is the last day of the third month after year end, 31 March 2027 for 2026\. The full month-by-month list is on our [2026 tax calendar](/en/tax-calendar-2026). Some sectors and households qualify under Decree 245/2026/ND-CP to pay Q2 and Q3 VAT and PIT later this year. Only payment moves; returns are still due on time, and the request must be sent by 2 November 2026\. Check whether you qualify in [the 2026 payment extension](/en/blog/vietnam-tax-payment-extension-2026-decree-245). ## What disappeared, what is new Gone from 1 January 2026: lump-sum tax, and the business licence fee (lệ phí môn bài) under Resolution 198/2025/QH15, together with its 30 January return. Unpaid licence fees from earlier years still have to be settled. New: every household, group 1 included, keeps accounting books under Circular 152/2025/TT-BTC, for at least five years. The owner can keep them, a close family member can, or an outside accountant can. Which book for which group is in [household bookkeeping under Circular 152](/en/blog/household-business-bookkeeping-circular-152). Households at VND 1 billion and above use e-invoices and register within 30 days of reaching the threshold. ## Crossing VND 1 billion halfway through the year This is the case we see most from August onwards. A café expects VND 900 million for the year, then passes VND 1 billion cumulatively in October. It then needs to register for e-invoices within 30 days (guidance counts the 30 days in two different ways, so we use the earlier date), file 01/CNKD for the quarter it crossed (Q4 2026, due 1 February 2027), and switch from the group 1 book to the group 2 book. Exactly which revenue the tax for that quarter is calculated on is a point we are still checking against the original decree, so we do not give a figure here. The café example is worked through in [household businesses under VND 1 billion](/en/blog/household-business-under-1-billion). ## Where people usually slip - **Still using VND 500 million.** We met a household with VND 800 million in revenue that had filed and paid Q1 tax after reading an old article. Overpaid tax can be offset or refunded, but it takes paperwork. - **Counting bank transfers only.** Cash sales are revenue too. Money a relative sends into the same account is not. Both mistakes happen when one account does everything. - **Choosing the PIT method by instinct.** The fabric shop above nearly chose 15% of profit because it “sounded fairer”. It would have cost VND 23 million more. - **Filing without paying.** The portal confirms receipt, the owner relaxes, and a late-payment notice arrives three weeks later. - **Skipping the book in group 1.** Without a sales book there is nothing to show the tax office that you are under VND 1 billion. - **Forgetting online sales.** Orders through Facebook, Zalo or marketplaces count towards the threshold. ## When an accountant is worth it A group 1 stall selling one kind of thing can usually manage alone. You do not need us to send one notice a year. From group 2 there are four quarterly returns, e-invoices, a PIT method to choose and books by sector. Our [tax filing service](/en/services/tax-filing) is VND 1.5 million a month before 8% VAT, with reminders five days before each deadline, and the e-tax account always stays in the owner’s name. See [pricing](/en/pricing), try the [fee calculator](/en/fee-calculator), or [book a free 30-minute call](/en/book-a-call) to find out which group your shop is in. ## Sources and update Based on Decree 68/2026/ND-CP (5 March 2026), Decree 141/2026/ND-CP (29 April 2026), Circular 18/2026/TT-BTC (forms 01/CNKD and 01/TKN-CNKD), Circular 152/2025/TT-BTC (household bookkeeping), Resolution 198/2025/QH15 (licence fee abolished), Decree 70/2025/ND-CP (invoices), Law on Tax Administration 108/2025/QH15 and Decree 245/2026/ND-CP (payment extension). Sector percentages follow guidance in use in 2026\. Last checked 4 October 2026; the treatment of revenue above the threshold for PIT will be updated once we have finished checking the original text. NG ## Sources checked 1. [Full text of Decree 68/2026/ND-CP on tax for household businesses (Nghe An public services portal, Vietnamese)](https://hcc.nghean.gov.vn/tin-tong-hop/toan-van-nghi-dinh-68-2026-nd-cp-quy-dinh-chinh-sach-thue-quan-ly-thue-voi-ho-kinh-doanh-2660.html) 2. [Threshold for household businesses officially raised to VND 1 billion (Bao Van Hoa, Vietnamese)](https://baovanhoa.vn/kinh-te/chinh-thuc-nang-nguong-doanh-thu-chiu-thue-cua-ho-kinh-doanh-len-1-ti-dong-223890.html) 3. [Decree 141/2026/ND-CP summary (MISA AMIS, Vietnamese)](https://amis.misa.vn/269759/nghi-dinh-141-2026-nd-cp/) 4. [The four groups of household businesses (MISA eShop, Vietnamese)](https://www.misaeshop.vn/?p=43105) 5. [From 2026, no business licence fee for companies and households (VnEconomy, Vietnamese)](https://vneconomy.vn/tu-2026-doanh-nghiep-ho-kinh-doanh-chinh-thuc-khong-phai-khai-va-nop-le-phi-mon-bai.htm) 6. [Vietnam tax administration: Decree 252/2026 compliance (Vietnam Briefing)](https://vietnam-briefing.com/news/vietnam-tax-administration-decree-252-2026-compliance.html/) Checked on 4 Oct 2026\. Tax rules change often; ask an accountant about your own case before acting on this. TG ## Written by ![Portrait of a Vietnamese woman in a white blouse sitting and smiling against a grey background](/_astro/team-1.DkQRmEiV_1wrpP9.jpg) Nguyễn Thị Hạnh, Chief accountant, founder Eighteen years in accounting, six of them at an audit firm before opening the office in 2014\. Signs off every financial statement before it is filed. [Profile and other articles](/en/team/nguyen-thi-hanh) LQ ## Read next 14/05 Tax [Household businesses under VND 1 billion: no tax, but three things to do](/en/blog/household-business-under-1-billion) 23/07 Tax [E-invoices for household businesses in 2026: when they become mandatory](/en/blog/e-invoices-household-business-2026) 08/09 Company [Should a household business become a limited company? Tax, books and costs compared](/en/blog/household-business-to-limited-company) DV ## Want someone to handle this? [Tax filing: price and what is included](/en/services/tax-filing)[Ask an accountant, free](/en/book-a-call)[More on tax](/en/blog/topic/tax)