Which business households are not subject to value-added tax?

Legal Consulting Office of Lao Dong Newspaper answers:

Article 3 of Decree 68/2026/ND-CP Regulating tax policies and tax management for business households and individual businesses (effective from March 5, 2026), stipulates the value-added tax as follows:

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 revenue directly 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.

Thus, from March 5, 2026, business households with annual revenue of 500 million VND or less are not subject to value-added tax.