Tax declarations: key notes for household businesses in Q1 2026

Tax authorities have set out key requirements for household businesses when filing VAT (GTGT) and personal income tax (TNCN), including the revenue threshold for exemption, calculation methods, electronic invoicing rules, and specific filing deadlines.

VAT and personal income tax exemption threshold

Household businesses do not pay VAT (GTGT) or personal income tax (TNCN) when annual revenue is 500 million VND or less.

Tax calculation methods when revenue exceeds 500 million VND

For households with annual revenue above 500 million VND, tax authorities allow two approaches to determine VAT and personal income tax:

• Revenue-based method: VAT is calculated directly on revenue. Personal income tax payable equals (taxable revenue = revenue minus 500 million VND) multiplied by the applicable personal income tax rate.
• Taxable income method: personal income tax is calculated on taxable income, where taxable income equals revenue minus allowable costs. Tax payable equals taxable income multiplied by the tax rate.

Real estate rental taxation

For real estate rental, tax authorities specify the following:

• VAT payable: equals revenue × 5% if above the threshold.
• Personal income tax payable: equals (revenue minus 500 million VND) × 5%.

If renting multiple properties, the 500 million VND deduction applies per contract, and total deductions cannot exceed 500 million VND.

Electronic invoicing requirements

Household businesses with annual revenue subject to VAT of 1 billion VND or more must use electronic invoicing with a tax authority code or cash registers connected to the tax authority.

If a household operates multiple business locations, it may use a single tax code for all locations, but each location’s address must be listed on the invoice. The tax administration system can automatically generate tax declarations based on electronic invoices and other data.

Tax declaration obligations

Household businesses must file both VAT and personal income tax declarations.

Filing deadlines by revenue level

Deadlines depend on whether annual revenue is within the non-taxable threshold or exceeds it:

• Revenue ≤ 500 million VND: report actual revenue to the tax authority no later than January 31 of the following calendar year.
• Revenue > 500 million VND:
  • VAT filing frequency:
    • Revenue up to 50 billion VND annually: VAT declared and paid quarterly.
    • Revenue above 50 billion VND annually: VAT declared and paid monthly.
  • Personal income tax: can be paid using one of the two methods described above (revenue-based or income-based), with quarterly or monthly advance payments depending on the chosen method and filing cycle.

Special rules for new business activity

For new business activity, the tax authority applies additional rules:

• Activities begin in the first half of the year: if revenue is up to 500 million VND, deadlines include 31 July for reporting revenue from the start of operation and 31 January of the next calendar year for the six-month period later.
• Activities begin in the second half of the year: if revenue is up to 500 million VND, the deadline is 31 January of the following year.
• When cumulative revenue exceeds 500 million VND: if cumulative revenue first exceeds the taxable threshold, the household must declare taxes quarterly starting from the quarter in which revenue first exceeds 500 million VND.

For rental real estate, declaration can be done twice a year or once a year depending on the taxpayer’s choice:

• Twice a year: deadlines are 31 July of the tax year or 31 January of the following year.
• Once a year: deadline is 31 January of the following year.

Individuals renting real estate must file VAT and personal income tax with the local tax authority where the property is located. Where a third party files on behalf of a tenant, the organization files quarterly for the individual, with deadlines aligned to VAT payment cycles.

First-time filing notes and support materials

For first-time filing, tax authorities note that if filing monthly for January–March 2026, the deadline is extended to April 30, 2026 to ease compliance.

For taxpayers under the khoán (flat tax) regime before 2025 who switch to declared taxation from January 1, 2026, past-year revenue in 2026 should not be used to re-determine past obligations, and penalties are generally not applied unless revenue is intentionally concealed.

A government handbook titled “Support Handbook for Household Businesses” outlines 10 sections on tax obligations, including registration, declaration, payment, electronic invoicing, and record-keeping, to facilitate compliance.

Overall, the tax authority emphasizes ongoing support and timely clarification for household businesses, including measures intended to ease first-time filing and encourage compliant, sustainable operations.