From January 1, 2026, Clause 6, Article 10 of Resolution 198/2025/QH15 has specifically stipulated that business households and individuals do not apply the tax contract method. Business households and individuals pay taxes according to the law on tax management.
At the same time, in Section 2.2 Section 2, Part I, Article 1 of the Project attached to Decision 3389/QD-BTC in 2025, the Ministry of Finance guides: From January 1, 2026, business households will officially switch from the contract tax method to the method of self-declaration and tax payment.
In Table 2, tax management models for households and individuals are classified and instructions on how to calculate tax on business households in 2026 in detail when removing contract tax to declare and pay taxes on self for 3 groups of business households.
For business households with a revenue of less than VND 200 million in Group 1, they will not have to pay value added tax (VAT) or personal income tax (PIT). Business households and individuals are responsible for declaring twice a year at the beginning of the year or in the middle of the year and at the end of the year to determine tax obligations.
In transactions with consumers, it is recommended to use electronic invoices with codes. Accounting books need to record simply and be supported with simple, free software.
In addition, business households are not required to open a bank account and do not apply the conversion of tax calculation methods.
Notably, households and individuals doing business through e-commerce platforms need to pay attention to the following 2 cases:
If the exchange has the function of payment: The exchange deducts, declares and pays VAT and personal income tax in percentage of revenue. If the year-end revenue is less than 200 million VND, the tax payment will be processed.
If the exchange does not have the function of payment: Individuals must self-declare and pay taxes for each arising, month or quarter.
In particular, state agencies will provide free accounting software, support businesses to use electronic invoices and provide legal advice.
