.svg)
.svg)
Once a household business exceeds VND 3 billion in annual revenue, the requirements related to taxation, tax filing, and financial record management become significantly more demanding. This threshold represents not only a new level of business scale but also a stage where stronger financial governance and compliance practices are increasingly necessary.
Group 3 consists of household businesses generating annual revenue between VND 3 billion and VND 50 billion. Businesses in this category typically operate at a scale comparable to small enterprises, with larger transaction volumes, more complex operations, and greater financial management requirements. As a result, tax administration, invoicing, and bookkeeping obligations are subject to stricter oversight compared to lower-revenue household businesses.
For this group, financial management extends beyond simply tracking revenue or fulfilling tax obligations. The ability to accurately record expenses, maintain supporting documentation, and manage financial data consistently plays an important role in determining tax liabilities and supporting effective business management.
Under Decree 68/2026/ND-CP, household businesses and business individuals with annual revenue between VND 3 billion and VND 50 billion must pay close attention to regulations governing taxation, filing frequency, electronic invoices, and accounting record requirements from 2026 onward.
1. Tax Obligations for Household Businesses with Annual Revenue Between VND 3 Billion and VND 50 Billion
Pursuant to Decree 68/2026/ND-CP, Group 3 household businesses are required to pay both Value Added Tax (VAT) and Personal Income Tax (PIT). Proper determination and reporting of these taxes require businesses to maintain accurate records of revenue, expenses, and supporting documentation to ensure compliance during tax filing and year-end tax finalization.
1.1 Value Added Tax (VAT)
VAT continues to be calculated directly based on revenue using the following formula:
VAT = Applicable VAT Rate × Revenue
The applicable VAT rate depends on the business sector in which the household business operates.
| Business Activity | VAT Rate |
| Distribution and sale of goods | 1% |
| Services and construction without materials supplied | 5% |
| Manufacturing, transportation, services associated with goods, and construction with materials supplied | 3% |
| Other business activities | 2% |
| Property leasing, real estate leasing, and digital content products and services | 5% |
| Insurance agents, lottery agents, and multi-level marketing agents | - |
Accurately identifying the business sector remains essential to applying the correct tax rate and ensuring accurate tax declarations.
1.2 Personal Income Tax (PIT)
For household businesses and business individuals with annual revenue exceeding VND 3 billion, PIT is calculated based on taxable income, which is the difference between revenue and deductible expenses.
The PIT calculation formula is:
PIT = (Revenue – Deductible Expenses) × Tax Rate
The applicable tax rates are:
-
17% for household businesses and business individuals with annual revenue between VND 3 billion and VND 50 billion.
-
20% for household businesses and business individuals with annual revenue above VND 50 billion.
To qualify as deductible expenses, costs must be supported by valid invoices and documentation. In addition, transactions valued at VND 5 million or more must be made through bank transfer or other non-cash payment methods in accordance with regulations.
2. Tax Filing: Higher Revenue Means More Frequent Reporting
One of the key changes for household businesses with annual revenue above VND 3 billion is the filing frequency requirement.
Specifically:
-
Household businesses and business individuals with annual revenue between VND 3 billion and VND 50 billion must file taxes quarterly.
-
Household businesses and business individuals with annual revenue above VND 50 billion must file taxes monthly.
As a result, business owners must monitor revenue more closely to ensure that tax declarations remain complete and accurate.
Provisional Tax Payments During the Year
Depending on their filing category, household businesses must make provisional VAT and PIT payments either monthly or quarterly using Form 01/CNKD.
The provisional PIT amount is determined by multiplying taxable revenue for the month or quarter by the applicable PIT rate corresponding to the business activity.
Regular tax filing not only helps businesses comply with tax regulations but also provides an opportunity to review revenue performance and business operations on an ongoing basis.
Annual Tax Finalization
At the end of the fiscal year, household businesses are required to complete an annual PIT finalization.
The tax finalization dossier must be submitted no later than March 31 of the following year using Form 02/CNKD-TNCN-QTT.
This process is important for reconciling tax liabilities incurred during the year and completing all tax obligations in accordance with regulations.
3. Electronic Invoices and Accounting Records Become Mandatory
For household businesses with annual revenue above VND 3 billion, the use of electronic invoices is mandatory.
In addition, household businesses and business individuals must maintain a complete accounting record system, including:
Maintaining these records is not only necessary for tax filing and tax finalization purposes but also enables business owners to systematically track revenue, expenses, and cash flow.
As revenue exceeds VND 3 billion, managing finances through scattered spreadsheets or manual record-keeping often becomes increasingly difficult, particularly as transaction volumes continue to grow.
Important Considerations
To qualify as deductible expenses for tax purposes, all costs must satisfy documentation requirements and be supported by valid invoices and records.
In particular, transactions valued at VND 5 million or more must be completed through bank transfer or other approved non-cash payment methods.
In addition, household businesses should promptly update the tax authority whenever there are changes to bank accounts or e-wallet information through the eTax Mobile application to ensure tax records remain accurate and up to date.
4. Moving from Tax Compliance to Proactive Financial Management
For household businesses generating annual revenue above VND 3 billion, the challenge extends beyond filing taxes on time or maintaining proper documentation. More importantly, business owners need the ability to monitor operational performance, control costs, and evaluate profitability based on reliable financial data.
In practice, revenue data, invoices, and transaction records are often spread across multiple systems. As a result, consolidating and analyzing financial information can become both time-consuming and resource-intensive.
Sliner helps e-commerce household businesses make better use of their financial data through intuitive reporting and analysis of revenue, expenses, profitability, and cash flow. This enables business owners to gain a clearer understanding of business performance, identify unusual trends, and make informed decisions based on data rather than assumptions.
As revenue continues to grow, complying with tax requirements is only the first step. The greater value lies in leveraging financial data to manage operations more effectively and prepare the business for its next stage of growth.
