According to point b, clause 3, Article 5 of Decree 68/2026/ND-CP, the time to determine revenue for personal income tax (PIT) for household businesses providing services is the time of completion of service provision or completion of part of service provision to buyers, except for service provision activities specifically specified in clause 2, Article 5 of this Decree.
This regulation is the basis for business households to correctly determine the time when taxable revenue arises in the process of declaring tax obligations according to the new management mechanism applied from 2026.
Taxable revenue includes all revenue from business activities
According to Article 5 of Decree 68/2026/ND-CP, PIT taxable revenue of business households is the entire amount of sales money, processing money, and service provision money that business households receive, regardless of whether money has been collected or not.
In addition to sales revenue, service provision revenue, taxable revenue also includes subsidies, surcharges, premiums, sales bonuses, promotional support, payment discounts, other cash or non-cash supports, contract violation compensation and other revenues related to business activities. However, taxable revenue does not include commercial discounts, discounts on goods sold and the value of goods sold returned.
Some activities have their own way of determining revenue
Decree 68/2026/ND-CP specifically stipulates how to determine revenue for some specific cases.
For goods processing activities, revenue is money collected from processing activities, including wages and costs of fuel, power, auxiliary materials and other costs for processing.
In case of selling goods or providing services in installment or deferred payment methods, revenue is the money from the sale of goods and services with one-time payment, excluding installment interest and deferred interest.
In case of delivery of goods to agents, revenue is the total amount of goods sold.
In case of accepting to be an agent to sell goods at the right price according to the regulations of the agent handover party, the revenue is the commission enjoyed according to the agent contract.
For property leasing activities, revenue is the amount of money the lessee pays each period according to the lease contract. In case the lessee pays in advance for many years, revenue is allocated according to the number of years of advance payment or determined according to disposable revenue.
For service provision activities where customers pay in advance for many years, revenue to calculate taxable income is allocated according to the number of years of advance payment or determined according to disposable revenue.
For transportation activities, revenue is the entire amount of transportation of passengers, goods, and luggage incurred in the tax period.
For construction and installation activities, revenue is the value of the project, the value of the project item or the value of the accepted project volume, including the value of raw materials, machinery, and equipment. In case construction and installation does not include raw materials, machinery, and equipment, revenue does not include the value of these items.
The time to determine revenue is determined by each type of activity
In addition to service provision activities, Decree 68/2026/ND-CP also clearly stipulates:
- For goods sales activities, the time to determine revenue is the time of transfer of ownership or right to use goods to the buyer;
- For service provision activities, the time to determine revenue is the time of completion of service provision or completion of part of service provision, except for special cases specified in Clause 2, Article 5.
Determining the correct time of revenue is an important basis for business households to declare on time for tax calculation and avoid tax obligation deviations.
Business households are responsible for fully declaring incurred revenue
According to Article 13 of Decree 68/2026/ND-CP, business households and individual businesses are responsible for:
- Self-declare fully and accurately incurred revenue;
- Self-determine the amount of tax payable according to regulations;
- Be responsible before the law for the declared content.
In addition, business households must notify the tax authority electronically of the entire number of accounts opened at the payment service provider and the e-wallet number related to business activities.
Business households are also responsible for using accounting books according to the provisions of accounting law, using invoices according to regulations and providing accounting books, invoices, sales management software and related documents when tax authorities request to serve tax inspection.
For business households operating on e-commerce platforms, businesses must provide a complete and accurate tax identification number or personal identification number along with relevant information in accordance with the law on e-commerce to serve the determination of tax obligations.
