Although they do not have to pay VAT and personal income tax, business households with revenue of less than 500 million VND/year are still required to make invoices when selling goods to organizations and businesses. Confusion about this regulation makes many households face the risk of being fined, having their revenue determined and losing tax exemption rights.
Tax exemption does not mean invoice exemption
From 2026, business households with revenue of less than 500 million VND will continue to be exempt from VAT and PIT according to new regulations. However, tax exemption is only financial obligation exemption, not full management obligation exemption. In B2B transactions, invoices are still mandatory documents, regardless of whether the household incurs tax or not.
Many small households misunderstand that "if you don't pay taxes, you don't need to issue a invoice". But businesses buying goods need invoices to account for costs, finalize taxes and prove the validity of expenses. When households do not make invoices, businesses often refuse to pay or send feedback to tax authorities.
According to Decree 310/2025/ND-CP, the act of not issuing invoices or issuing them at the wrong time may be fined 4–8 million VND, even if the household does not incur tax obligations.
Lack of invoices, business households lose legal support
In transactions from a few million to tens of millions of VND, invoices are legal evidence to protect both sellers and buyers. "Forgetting invoices" not only prevents businesses from finalizing costs but also puts business households in a weak position if disputes arise.
A practical case: a gift-selling household in Hanoi supplied a batch of 24 million VND to an event organizing enterprise but did not make an invoice. When the enterprise requested documents for accounting, the household did not issue them in time, leading to penalties. Not only losing revenue, the household was also assessed as not complying with documents regulations.
Invoices are therefore not only legal obligations, but also a mechanism to protect transactions, especially for business households with large transactions or serving corporate customers.
Without invoices, business households are easily determined by revenue
The tax management system from 2026 has switched to an automatic data comparison model between banks, electronic wallets, transportation units and e-commerce platforms. Transactions with businesses almost always have payment traces, making it easier for tax authorities to compare.
When cash flow does not have accompanying invoices, the tax authority can set revenue according to the Law on Tax Administration. This especially happens when:
- The books do not match the bank.
- There are large transactions with businesses but no invoices are made.
- Payment data is higher than self-declared revenue.
- Businesses send documents requesting inspection.
Many business households have actual revenue of 400-450 million VND/year but are set at 520-600 million VND due to lack of documents. The consequence is that households lose the right to tax exemption, have to pay VAT, PIT and may be retroactively collected for many years.
Not paying taxes but still having to have full documents
Even if VAT and PIT do not arise, business households under 500 million VND still have to prepare electronic invoices according to regulations. On the invoice, the VAT rate is 0%, the VAT amount is 0 VND. Households can note "Revenue under 500 million VND/year, not subject to VAT and PIT according to regulations".
This note is not mandatory but helps businesses easily account for and limit the request for explanation.
Households still have to register to use electronic invoices, record daily revenue books and prepare invoices at the right time according to Decree 123/2020/ND-CP and Circular 152/2025/TT-BTC.
The tax exemption policy for households under 500 million VND is important support, but does not change the legal nature of invoices in B2B transactions. In the context of tax authorities strengthening data comparison according to cash flow, not issuing invoices in accordance with regulations not only leads to administrative fines but can also cause households to lose the right to tax exemption and be classified as high-risk groups.
Establishing complete invoices at the right time, without increasing taxes to be paid, but it is an important shield to help business households maintain transparency and legal safety in transactions with businesses.
Business households under 500 million VND must prepare invoices when:
- Selling goods or providing services to businesses and organizations.
- The buyer requests an invoice, even if it is personal.
- Transactions are carried out through bank transfers to serve the final settlement of enterprises.
- Being asked for invoices by e-commerce platforms to compare goods and services.
Households doing business under 500 million are not required when:
- Retail sales for individuals who do not need to issue invoices.
- Small-scale transactions, without payment documents and not serving the accounting purposes of enterprises.
