Which business households are required to use electronic invoices?
According to Clause 2 of Decree 141/2026/ND-CP amending Clause 5, Article 8 of Decree 68/2026/ND-CP, business households and individual businesses with annual revenue over 01 billion VND must apply electronic invoices with codes of tax authorities, electronic invoices created from cash registers with data connection with tax authorities.
The document clearly stipulates the use of electronic invoices by business households as follows:
5. Use electronic invoices
a) Business households and individual businesses with annual revenue over 01 billion VND must apply electronic invoices with codes from tax authorities, electronic invoices created from cash registers with data connection with tax authorities.
In case business households and individual businesses have multiple business locations, the tax code of business households and individual businesses is used for all stores and the business location code must be clearly stated on the invoice;
b) In case business households and individual businesses have annual revenue of 1 billion VND or less that meets the conditions and have a need to use electronic invoices, they register to use electronic invoices with codes from tax authorities or electronic invoices generated from cash registers with data connection with tax authorities;
c) Business households and individual businesses that have just started business under Article 9 of this Decree or business households and individual businesses with revenue in the previous year not exceeding 1 billion VND (except in cases where they have registered to use electronic invoices according to point b of this clause) but have revenue in the tax year of over 1 billion VND or more, must apply electronic invoices with codes of tax authorities, electronic invoices generated from cash registers with data connection with tax authorities. Business households and individual businesses register to use electronic invoices within 30 days from the last day of the tax period with accumulated revenue of over 1 billion VND.
According to the above regulations, business households with annual revenue of over 1 billion VND must use electronic invoices with codes from tax authorities, electronic invoices created from cash registers with data connection with tax authorities. Business households with revenue of less than 1 billion VND belong to the group of subjects who are not required to use electronic invoices.
According to old regulations, business households with revenue from 1 billion VND/year must apply electronic invoices.
Business households with revenue of 1 billion VND or less are not required to pay VAT and PIT
Recently, Decree 141/2026/ND-CP has raised the threshold for personal income tax and VAT for business households from 500 million to 1 billion VND/year. Accordingly:
Clause 1, Article 1 of Decree 141/2026/ND-CP stipulates as follows:
1. Amending the phrase "500 million VND" to "1 billion VND" in Article 3, Article 4, Clause 1, Article 8, Article 9, Article 10, Clause 3, Article 11, Clause 1 and Clause 2, Article 12, Clause 4, Article 17, Clause 3, Article 18 of Decree No. 68/2026/ND-CP.
According to the old regulations, Article 3 of Decree 68/2026/ND-CP stipulates as follows:
Article 3. Value-added tax
1. Business households and individual businesses with production and business activities with annual revenue of 500 million VND or less are not subject to value-added tax.
2. Business households and individual businesses with production and business activities with annual revenue of over 500 million VND are subject to value-added tax and apply the method of calculating directly according to revenue by the percentage of% multiplied by (x) revenue. The percentage and taxable revenue are implemented according to the provisions of the Law on Value Added Tax No. 48/2024/QH15 and guiding documents for implementation.
And Article 4 of Decree 68/2026/ND-CP stipulates as follows:
Article 4. Personal income tax
1. Resident individuals with production and business activities, including individuals registering to establish business households or people authorized by household members to act as representatives of business households (hereinafter referred to as business individuals) with annual revenue of 500 million VND or less are not subject to personal income tax.
Thus, according to the new regulations, business households and individual businesses with production and business activities with annual revenue of 01 billion VND or less are not subject to value-added tax and are not subject to personal income tax.
