Reader T.G.H, currently living and doing business in Dak Lak, said that his family works as a small-scale agricultural product trader. Transactions are mainly conducted through bank transfers, with a total amount per month ranging from 500 to 600 million VND. However, most of this cash flow is bought and sold, the actual profits earned are not high due to input, transportation costs and fluctuations in agricultural product prices.
The family does not have a fixed business establishment, does not hire regular workers, and does small business from households. A reader asked: With such a scale, is it necessary to register a business household or not? If registration is mandatory, how must tax be declared and paid? In case of non-registry, will it be considered tax evasion?
Responding to the above issue, the Dak Lak provincial tax authority responded as follows:
Business household must be registered if not exempt
According to the provisions of Clause 3, Article 82 of Decree No. 168/2025/ND-CP, households producing agriculture, seasonal businesses, low-income households... are not required to register as business households. However, agricultural product trading activities on a scale similar to Ms. T.G.H's are not subject to these exemptions, so it is necessary to register a business household and register for tax according to Article 83 of the Decree.
Regarding tax payment, according to Circular 40/2021/TT-BTC, the annual revenue of 6 to 7.2 billion VND as reflected is not considered a large-scale business household. Therefore, business households can choose one of two methods: declaring according to actual revenue or paying tax according to contract method (determined by the tax authority based on data and opinions of the local Tax Advisory Council).
Failure to register will be fined and tax will be collected
In case of not registering a business household, the violator will be administratively sanctioned according to Decree 122/2021/ND-CP with a fine of 510 million VND. At the same time, if they do not register for tax, they will be punished according to Decree 125/2020/ND-CP for tax evasion, with a fine of up to 1 tax evasion.
The tax authority recommends that people proactively contact the business registration department at the commune and ward levels where they reside to carry out registration procedures, and at the same time coordinate with local tax authorities to receive instructions on tax declaration and payment in accordance with regulations.
