Tax policy for household businesses with annual revenue under 500 million VND

To facilitate access to and implementation of tax policy for household businesses and individual traders with annual revenue under 500 million VND, the Tax Department provides guidance on tax policy and tax administration.

Step 1: Determine the tax calculation method

• VAT and personal income tax methods: Not subject to VAT and Personal Income Tax.
• Change in tax method: If actual revenue in the year exceeds 500 million VND, tax declaration and payment must begin from the quarter in which the revenue exceeds 500 million.

Step 2: Accounting books, invoices, and supporting documents

• Accounting books: Sales revenue book (form S1a-HKD).
• Purpose of the sales revenue book: To provide a basis for declaration and to determine whether the household business or individual business is subject to VAT and Personal Income Tax under tax law; and to monitor and reconcile data with the tax authorities.
• Accounting vouchers: None.
• Storage: Electronic or paper.
• Retention: At least 5 years for accounting documents.
• Organization of accounting: The representative of the household business or the individual business records the accounting books themselves; or appoints someone to handle accounting tasks (including parents, spouse, child, siblings, or someone assigned to manage, operate, warehouse, cashier, or regularly handle asset purchases and sales); or hires an accounting service.

Step 3: Filing and paying taxes

Where to submit tax declarations

A consolidated tax declaration for all business locations in a single form must be submitted to the tax authority directly managing the headquarters of the household or individual business.

Filing period and deadlines

• New businesses:
  • If starting in the first 6 months of the year: two notifications per year.
    • First notification of actual revenue up to 30/6: by 31/7.
    • Second notification of actual revenue for the 6 months of the second half: by 31/01 of the following Gregorian year.
  • If starting in the second half of the year: notify actual revenue by 31/01 of the following Gregorian year.
• Bank account number/e-wallet notification: Submitted together with the first revenue notification and again when any changes occur.
• Steady business:
  • Notify bank account number/e-wallet no later than 20 April 2026 and again when changes occur.
  • Notify actual revenue for the year by 31/01 of the following Gregorian year.

Tax declaration documents

• Notify bank account number/e-wallet per Form 01/BK-STK.
• Notify revenue per Form 01/TKN-CNKD.

Tax filing and payment method

• Tax declaration submission: Electronically.
• Special cases: Elderly people, disabled persons, social welfare recipients, residents in economically and socially difficult areas, or other force majeure cases who cannot transact electronically may file in person or send by postal service to the commune-level public service center.
• Tax payment: Not required to pay taxes.