According to the provisions of Decree 68/2026/ND-CP of the Government and Circular 18/2026/TT-BTC of the Ministry of Finance, business households and individual businesses with revenue from 500 million VND/year or less are not subject to value-added tax and personal income tax, but must still notify the tax authority of the actual revenue generated.
This is an important new point in the tax management mechanism for the household business sector after switching from the presumptive tax method to a management mechanism based on actual revenue data.
According to current regulations, the announcement of revenue is not intended to determine the amount of tax payable immediately in the year, but is the basis for tax authorities to monitor business scale fluctuations, determine tax obligation thresholds and change management methods when revenue changes.
In fact, many business households often understand that revenue below 500 million VND per year means no tax procedure obligations arise. However, the new regulations clearly define: not having to pay taxes does not mean not having to notify revenue.
Two deadlines for revenue notification are easily missed
According to Article 9 of Decree 68/2026/ND-CP, the deadline for notifying revenue is determined according to the time of starting business activities in the year.
Specifically:
In case business households start operating in the first 6 months of the year, they must notify the actual revenue generated by June 30 and send it to the tax authority no later than July 31 of the same year.
For revenue generated in the last 6 months of the year, the notification deadline is no later than January 31 of the following year.
In case business households start operating from the last 6 months of the year, the deadline for reporting revenue is implemented no later than January 31 of the following year.
For business households that have been operating stably from previous years and have total annual revenue not exceeding 500 million VND, the notification of revenue is made once no later than January 31 of the following year.
This regulation helps tax authorities have a basis to monitor revenue fluctuations according to the actual operating cycle of business households, instead of applying the contracting mechanism as before.
If revenue exceeds 500 million, tax declaration will be switched.
According to Decree 68/2026/ND-CP, in case actual revenue generated in the year exceeds the threshold of 500 million VND, business households must switch to declaring and paying taxes according to the declaration method from the time tax obligations arise.
At that time, business households must implement:
- Tax declaration monthly or quarterly depending on scale;
- Fulfilling value-added tax obligations;
- Fulfill personal income tax obligations as prescribed.
Therefore, notifying revenue on time is not only a simple administrative procedure but also a basis for determining the time to switch to the tax declaration mechanism.
In the context of tax management shifting strongly to methods based on electronic data and actual revenue, the obligation to notify revenue becomes an important step to help business households proactively control tax obligations, limit errors and adapt to the new management mechanism.
