Although not subject to value-added tax (VAT) and personal income tax (PIT), business households still have to notify tax authorities of actual revenue generated in the year according to new regulations.
According to Article 13 of the 2025 Law on Tax Administration, regulations on tax declaration and tax calculation for business households and individual businesses have clearly stated the responsibility to notify revenue in cases where no tax obligations arise.
Regarding VAT and PIT, in case business households and individual businesses self-determine that they have annual revenue from production and business activities of goods and services that are not taxable or not subject to tax according to regulations, they must still notify the tax authority of the actual revenue generated in the year.
Meanwhile, in case business households and individual businesses determine that revenue is subject to tax and must be taxed according to regulations, they shall self-determine the amount of VAT and PIT to be paid according to legal regulations.
Automatic tax system supports declaration
The law also stipulates that in cases where business households and individual businesses use electronic invoices or electronic invoices created from cash registers with data connections with tax authorities, the tax management information system will automatically create tax declarations to support tax declaration and calculation.
The creation of declarations is carried out on the basis of electronic invoice data, tax management data and other data sources collected by tax authorities from relevant state agencies, organizations and individuals.
For other types of taxes and other revenues, business households and individual businesses shall determine the amount to be paid according to tax laws and relevant legal regulations.
