PayPal
Get Your BusinessReady To Grow!
Sliner
I. Economic Context in 2026 and Rationale for Tax Policy AdjustmentII. Key Provisions of Decree 141/2026/ND-CPIII. New Transitional Provisions: Key Updates to UnderstandIV. Policy Impact Assessment and ImplicationsV. Conclusion and Sliner’s Perspective
Share article:
By James Ng • May 5, 2026 at 5:16 PM GMT+7

E-commerce Household Business Tax 2026 | Which Businesses Are Exempt Under Decree 141

Household Business Tax in 2026, Especially for E-commerce: What Has Changed? Tax Exemptions and the VND 1 Billion Revenue Threshold under Decree 141

E-commerce Household Business Tax 2026 | Which Businesses Are Exempt Under Decree 141

I. Economic Context in 2026 and Rationale for Tax Policy Adjustment

The year 2026 has been marked by complex global economic developments, including geopolitical conflicts and volatility in energy prices. These factors have significantly increased input costs such as fuel, logistics, and raw materials, while domestic purchasing power has shown signs of decline. In the Vietnam market, these pressures are particularly pronounced, given the economy’s high openness and sensitivity to external cost fluctuations.
 
In this context, small enterprises and household businesses have been disproportionately affected due to limitations in capital, workforce, and operational scale. The previous 500 million VND revenue threshold has become outdated, no longer aligned with inflation, economic growth, or actual operating costs.
The adjustment to a 1 billion VND revenue threshold helps recalibrate tax obligations more appropriately, while also reducing incentives for tax avoidance arising from high compliance costs relative to business benefits at a small scale.
 
At the same time, the policy aims to harmonize the regulatory framework between household businesses and small enterprises, fostering a more transparent and competitive environment. Raising the threshold also creates room for businesses to sustain operations, avoid downsizing or closure, and contribute to employment stability and local supply chains.
 

II. Key Provisions of Decree 141/2026/ND-CP

Decree 141/2026/ND-CP focuses on adjusting the non-taxable revenue threshold for Value-Added Tax (VAT) and Personal Income Tax (PIT) from 500 million VND to 1 billion VND annually, applied consistently across relevant provisions of Decree 68/2026/ND-CP. This represents a foundational change with direct implications for tax obligations of household and individual businesses.
 
In addition, the decree introduces a Corporate Income Tax (CIT) exemption for enterprises with total annual revenue not exceeding 1 billion VND, thereby extending policy support to small businesses and ensuring alignment across business types.
 
Regarding invoicing, the decree establishes a tiered approach based on revenue. Businesses exceeding the 1 billion VND threshold are required to use e-invoices with tax authority codes or point-of-sale systems, while those below the threshold may opt in if they meet eligibility conditions and have practical needs. In cases where revenue exceeds the threshold during 2026, businesses must complete e-invoice registration within 30 days.
 
Below is the Comparison Table: Key Changes under Decree 141/2026/ND-CP:
 
Comparison Content

Previous Regulation

(Decree 68/2026/ND-CP)

New Regulation

(Decree 141/2026/ND-CP)

 Key Change
1. Revenue threshold exempt from VAT and PIT (Clause 1, Article 1 – Decree 141) Annual revenue ≤ VND 500 million is not subject to VAT and not required to pay PIT. (Articles 3, 4 – Decree 68) Annual revenue ≤ VND 1 billion is not subject to VAT and not required to pay PIT. Threshold doubled, significantly expanding the scope of tax-exempt households
2. Tax declaration method based on revenue threshold (Clause 1, Article 1 – Decree 141) - Revenue ≤ VND 500 million: Report actual revenue to tax authorities
- Revenue > VND 500 million: Declare and pay taxes (Clause 1 Article 8, Articles 9, 10 – Decree 68)		 - Revenue ≤ VND 1 billion: Report actual revenue
- Revenue > VND 1 billion: Declare and pay taxes		 Shift in compliance threshold, reducing the number of businesses required to fully declare taxes
3. Handling of overpaid taxes (Clause 1, Article 1 – Decree 141) Revenue ≤ VND 500 million but taxes already paid or withheld can be refunded/offset (Clauses 1, 2 Article 12 – Decree 68) Revenue ≤ VND 1 billion but taxes already paid or withheld can be refunded/offset Expanded eligibility for refunds/offsets, protecting more taxpayers
4. Mandatory e-invoice threshold (Clause 2, Article 1 – Decree 141) Revenue ≥ VND 1 billion must use e-invoices with tax authority codes (Point a Clause 5 Article 8 – Decree 68) Revenue > VND 1 billion must use e-invoices with tax authority codes Change from "≥ VND 1 billion" to "> VND 1 billion"
5. Voluntary e-invoice registration (Clause 2, Article 1 – Decree 141) Revenue > VND 500 million and < VND 1 billion may voluntarily register (Point b Clause 5 Article 8 – Decree 68) Revenue ≤ VND 1 billion may voluntarily register if eligible Broader flexibility, allowing more small businesses to opt in
6. Business location information on invoices (Clause 2, Article 1 – Decree 141) Must state the full address of each business location (Point a Clause 5 Article 8 – Decree 68) Must state the business location code on invoices Standardization of data, improving consistency and tax administration
7. Transitional provision for handling paid taxes (Clause 1, Article 4 – Decree 141) No equivalent transitional provision under Decree 68 Businesses with revenue ≤ VND 1 billion that already declared and paid taxes under Decree 68 are eligible for refund/offset New transitional mechanism, ensuring fairness and minimizing disruption
 
Transitional provisions are clearly defined to ensure continuity in policy application. Cases that have already declared and paid taxes under previous regulations are eligible for refunds or offsets. Enterprises that have made provisional CIT payments in Q1 2026, if projected revenue does not exceed the threshold, are not required to continue provisional payments and may offset or reclaim overpaid amounts. 
 
In case where the 2025 tax period ends after January 1, 2026, are exempt from corporate income tax (CIT) for the period from January 1, 2026 to the end of the 2025 tax period.
The exempt CIT amount for the 2025 tax period is calculated as: (Total CIT payable for 2025 ÷ 12 months, or ÷ the actual number of months of operation if the enterprise was newly established in 2025) × the number of months falling in the 2026 calendar year.

III. New Transitional Provisions: Key Updates to Understand

Beyond serving as implementation guidance, the new transitional provisions reflect a more flexible approach, with a clear focus on safeguarding the practical interests of taxpayers during the period of policy transition.
 
For business households and individual business owners with annual revenue not exceeding VND 1 billion, if value-added tax (VAT) and personal income tax (PIT) had already been declared and paid under the previous regulations, such amounts are not forfeited. Instead, the new policy allows these payments to be handled through refund or offset mechanisms in accordance with Article 12 of Decree 68/2026/ND-CP. This demonstrates a key improvement in policy design by incorporating transitional considerations, thereby avoiding disadvantages arising solely from mid-period regulatory changes.
 
digital-composite-image-businessman-holding-mobile-phone-symbol-black-background 4.jpg
 
For enterprises, the impact is more evident in terms of cash flow. In cases where corporate income tax (CIT) was provisionally paid in Q1 2026, but the projected annual revenue does not exceed VND 1 billion, enterprises are no longer required to continue provisional payments for the remaining quarters. The amounts already paid can be flexibly managed through offset or refund mechanisms. This approach enables businesses to retain working capital during operations rather than being constrained by precautionary tax prepayments.
 
A technically significant update applies to fiscal year 2025 periods extending into 2026. If the conditions under Article 2 of Decree 141/2026/ND-CP are satisfied, the portion of time falling within 2026 is eligible for CIT exemption, calculated on a monthly basis. This implies that the new policy does not merely take effect from a fixed starting point, but can extend into transitional periods, ensuring continuity in tax treatment.
Overall, these transitional provisions go beyond procedural adjustments and clearly signal a policy direction aimed at reducing financial pressure, minimizing disruption, and protecting taxpayers’ legitimate interests throughout the regulatory transition.

IV. Policy Impact Assessment and Implications

The new policy delivers clear and immediate benefits for micro-enterprises and business households by significantly reducing the overall tax burden. Enterprises with annual revenue not exceeding VND 1 billion are fully exempt from corporate income tax (CIT) and are not required to make provisional tax payments if their projected revenue remains below the threshold. Business households and individual business owners within the same revenue range are exempt from value-added tax (VAT) and personal income tax (PIT). This mechanism enhances capital accumulation capacity, supports reinvestment, and helps maintain stable business operations.
 
Positive impacts are also evident in the reduction of compliance and administrative costs. With fewer requirements for complex tax declarations and payments for entities below the threshold, businesses and households can save considerable time, accounting expenses, and advisory costs, allowing them to focus resources on core business activities.
 
At the same time, the policy creates momentum for entrepreneurship and business model transformation. By narrowing the policy gap between business households and enterprises, the transition process becomes more seamless, minimizing disruption to tax benefits while improving access to capital, contracts, and management capabilities.
 
From a broader socio-economic perspective, the policy contributes to sustaining employment for the general workforce, strengthening the resilience of the microeconomic sector against external shocks, and supporting the stability of local business activities.

V. Conclusion and Sliner’s Perspective

The policy plays a significant role in reducing compliance and administrative costs, as many business entities are no longer required to undertake complex tax procedures or meet stringent tax management requirements. This results in meaningful savings in time, accounting, and advisory expenses. The expansion of the revenue threshold also creates room for entrepreneurship and business scaling, reducing the incentive to remain small solely to avoid tax obligations, while encouraging the transition from business households to enterprises with improved governance and better access to capital, without immediate loss of tax advantages.
 
From a socio-economic standpoint, the policy helps maintain employment for the general workforce and enhances the resilience of the microeconomic sector amid ongoing uncertainties. However, from a long-term perspective, if the Government could consider raising the revenue threshold further, to approximately VND 2 to 3 billion, in order to foster sustainable revenue development and promote the growth of the private sector, in alignment with the direction set out in Resolution No. 198/2025/QH15 of the 15th National Assembly.
Suggested Topics:Taxlegalregulationse-commercecommercehousehold business tax

What to read next

Global businesses in the era of Vietnam’s rise
Legal & Regulations

Global businesses in the era of Vietnam’s rise

Vietnam’s addition to the EU tax blacklist is not a failure — it is a signal that the international business environment is undergoing a fundamental shift, where compliance is no longer optional but a prerequisite for survival.

2026 Tax Regulation Update For Real Estate Enterprises
Legal & Regulations

2026 Tax Regulation Update For Real Estate Enterprises

On-site tax training session delivered by Sliner’s Tax Advisory Team at VINAHUD.

Vietnam's 2026 Tax Reforms For Household Businesses: Navigating the Transition in Cross-Border E-Commerce
Legal & Regulations

Vietnam's 2026 Tax Reforms For Household Businesses: Navigating the Transition in Cross-Border E-Commerce

Perspectives from Sliner - Tax & Financial advisory for e-commerce enterprises

S

Sign up for the latest insights

Receive in-depth analysis, market trends, and the latest updates on finance and technology every week.

Join 5,000+ finance professionals. Unsubscribe anytime.