Regulations on filing tax returns for business households with revenue below 500 million VND
Based on Clause 2, Article 4 of Circular 40/2021/TT-BTC, it is stipulated:
Business households and individuals with revenue from production and business activities in the calendar year from 100 million VND or less are not subject to VAT and are not subject to PIT according to the provisions of law on VAT and PIT.
Business households and individuals are responsible for declaring taxes accurately, truthfully, and fully and submitting tax dossiers on time; and are responsible before the law for the accuracy, truthfulness, and completeness of tax dossiers as prescribed.
According to Clause 25, Article 5 of the 2024 Value Added Tax Law (amended and supplemented in the amended 2025 Value Added Tax Law), the objects not subject to VAT are as follows:
25. Goods and services of households and individuals producing and doing business with an annual revenue level of 500 million VND or less; assets of non-business organizations and individuals who are not value-added taxpayers sold; national reserve goods sold by the national reserve agency; fees and charges according to the provisions of law on fees and charges.
At the same time, Clause 1, Article 7 of the 2025 Personal Income Tax Law also stipulates:
1. Resident individuals with production and business activities with annual revenue of 500 million VND or less are not subject to personal income tax. The Government submits to the National Assembly Standing Committee to adjust the level of revenue not subject to personal income tax to suit the socio-economic situation in each period.
Thus, based on the above regulations, from 2026, business households with revenue from 500 million VND or less are not required to pay personal income tax or VAT.
Although they are exempt from paying VAT and PIT, business households and individuals with low revenue (under 500 million VND) are still responsible for tax declaration and submitting tax dossiers on time according to regulations.
Regulations on accounting books for business households with revenue below 500 million VND
Based on Article 4 of Circular 152/2025/TT-BTС guiding accounting for business households and individuals with revenue of less than 500 million VND/year as follows:
(1) In case business households and individual businesses are not subject to value-added tax and do not have to pay personal income tax, they shall use the Sales Book of goods and services (model number S1a-HKD) to record sales revenue of goods and services.
(2) Bookkeeping method
- This book is opened to record revenue from selling goods and services as a basis for declaring and determining whether business households and individuals are subject to VAT and pay PIT according to the provisions of tax law. In case business households and individuals declare revenue according to the provisions of tax law, business households and individuals can use this book to monitor and compare data with tax authorities.
+ Column A: Record the date and month recorded in the book.
+ Column B: Recording the revenue from selling goods and services. Business households and individuals can record according to each arising business or periodically.
+ Column 1: Record the amount of money from selling goods and services.
Thus, officially revenue under 500 million business households still have to make accounting books for 2026.
