Small businesses with annual revenue under 500 million dong can continue issuing electronic invoices

The Tax Department has reaffirmed that household businesses with annual revenue below the 500-million-dong threshold may continue using electronic invoices, after some local tax authorities had issued guidance suggesting they should stop. The department said local authorities cannot require eligible household businesses to discontinue electronic invoicing if the invoices are legitimate.

Clarification on electronic invoice use

In a press release dated April 17, the Tax Department stated that local tax authorities do not have the authority to force household businesses with revenue under the threshold to stop using electronic invoices, provided the businesses wish to continue and the invoices comply with regulations.

“Household businesses currently using electronic invoices will continue to use them, and there is no need to issue any additional notice to the tax authority,” the press release said.

Local authorities asked to review guidance and penalties

The Tax Department asked local tax authorities to review documents, notices, penalty decisions, or guidance related to electronic invoice use by household businesses under the 500-million-dong threshold. If any content is found to be inappropriate, the agencies must withdraw it to protect taxpayers’ rights and interests.

Who must use electronic invoices

According to the Tax Department, households with annual revenue of 1 billion dong or more are subject to mandatory electronic invoice use. Small-scale households with revenue of 500 million dong or less are not subject to mandatory use.

The department also noted that, in practice, households that registered to use electronic invoices and were approved by the tax authority have been using them.

Rationale and administrative approach

The Tax Department said electronic invoicing offers practical benefits by helping make transactions with buyers, businesses, and organizations more transparent and professional. It added that it does not restrict legitimate needs and is compiling issues to report to competent authorities to improve regulations, aiming to ensure convenience for household businesses and standardization in administration.

Ministry of Finance data

Data from the Ministry of Finance shows that by the end of 2025, the country had 3–4 million household businesses, of which more than 2 million file taxes regularly.

Last year, tax revenue from households and individual businesses reached 32.840 trillion dong, up 37.5% year-on-year. For the period 2022–2025, the number of household businesses remained around 3–4 million, with more than 2 million filing taxes regularly, accounting for about 2% of total state budget revenue.