From 2026, business households with late tax registration may be fined up to 10 million VND. However, it is not true that just having a business registration certificate is considered late tax registration. In fact, determining the "starting time of business" is the key factor, but it is being misunderstood by many business households.
Many households believe that just being granted a business registration certificate without immediately registering for tax is considered a violation. This understanding is not consistent with tax regulations. Accordingly, the tax registration period is not rigidly linked to the time of issuing the business registration certificate, but is determined according to the time of starting actual business operations.
This regulation is particularly meaningful in the context that from 2026, the penalty framework for late tax registration is applied more strictly and specifically. In cases where business households already have registration papers but have not incurred actual business activities, have no transactions, and have no revenue, they are not considered late tax registration.
Determining business start milestones in tax management
Current law does not provide a single concept of "starting business activities". However, in tax management practice, this time is understood as when household businesses generate practical commercial activities.
Signs commonly considered by tax authorities include:
- Selling goods, providing services;
- Receiving deposits and advance payments from customers;
- Emergence of online sales transactions, sales through social networks, e-commerce platforms;
- Issuing invoices or preparing sales documents.
As soon as the above-mentioned activities appear, whether small-scale or "test-selling", business households are still determined to have started business operations. At that time, the tax registration obligation must be fulfilled on time, otherwise it will be considered a violation.
Misunderstanding the timeline can lead to punishment
From 2026, the act of late tax registration of business households is penalized according to Article 10 of Decree 125/2020/ND-CP, which has been amended and supplemented by Clause 8, Article 1 of Decree 310/2025/ND-CP. The penalty level is determined based on the number of days of late registration, of which the highest level can be up to 10 million VND.
Misunderstanding the "start-up time" easily makes business households subjective, thinking that they are not operating while in reality transactions have arisen. When tax authorities compare data from banks, payment platforms, and e-commerce platforms, the risk of being detected and fined is very high.
Business households should register for tax immediately when the first sales activity arises, and should not wait until the operation is stable or has large revenue, in order to avoid unnecessary legal risks.
