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Under Vietnam’s updated tax management framework for household businesses, annual revenue is one of the key factors used to determine tax obligations, invoicing requirements, and bookkeeping responsibilities. Based on revenue levels, household businesses are categorized into different groups, each subject to a different level of tax administration and compliance requirements.
Group 1 consists of household businesses with annual revenue of no more than VND 1 billion. These are typically small-scale businesses operating in retail, food and beverage, services, or online commerce with relatively simple business structures. Compared to businesses in higher revenue brackets, this group benefits from a simplified tax administration framework designed to reduce administrative and accounting burdens.
However, this does not necessarily mean that all household businesses below the VND 1 billion threshold are completely exempt from tax-related obligations or compliance requirements. As a result, one of the most common questions among business owners is whether household businesses with annual revenue below VND 1 billion are required to pay taxes, use electronic invoices, or maintain accounting records similar to larger businesses.
1. Are Household Businesses with Annual Revenue Below VND 1 Billion Required to Pay Taxes?
Pursuant to Decree 68/2026/ND-CP, as amended by Decree 141/2026/ND-CP, household businesses with annual revenue of VND 1 billion or less are not subject to Value Added Tax (VAT). In addition, the corresponding business individuals are not required to pay Personal Income Tax (PIT) on income generated from these business activities.
However, under Article 7 of Decree 68/2026/ND-CP, as amended by Decree 141/2026/ND-CP, household businesses engaged in activities involving goods or services subject to Special Consumption Tax (SCT), Natural Resource Tax, or Environmental Protection Tax must still determine and fulfill their tax obligations in accordance with the regulations governing those specific taxes.
In other words, the VND 1 billion revenue threshold serves as the basis for determining VAT and PIT obligations for ordinary business activities. For other sector-specific taxes, household businesses must continue to comply with the relevant tax regulations whenever their business activities fall within the applicable scope.
Under current Vietnamese tax regulations, household businesses with annual revenue of VND 1 billion or less are not required to pay:
This means that while household businesses must still monitor and report their revenue, they are exempt from these two taxes as long as their annual revenue remains below the threshold.
However, many business owners mistakenly assume that tax exemption means there are no compliance obligations. In reality, household businesses are still required to fulfill certain reporting and record-keeping requirements.
2. Revenue Reporting Obligations
Even if no VAT or PIT is payable, household businesses are required to submit revenue information to the tax authorities using Form 01/TKN-CNKD.
For existing household businesses, the revenue notification must be submitted:
No later than January 31 of the following year.
For newly established household businesses:
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Businesses that commence operations during the first six months of the year must submit their revenue notification by July 31.
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Businesses that commence operations during the second half of the year must submit their revenue notification by January 31 of the following year.
Timely revenue reporting allows tax authorities to determine the business's operating status and verify whether it remains within the applicable revenue threshold.
In addition, household businesses are required to declare the bank account or e-wallet used for business transactions through the eTax Mobile application or the National Public Service Portal at the same time they submit their revenue notification.
3. Are Household Businesses Required to Maintain Accounting Records?
Compared to companies, accounting requirements for household businesses with annual revenue below VND 1 billion are relatively straightforward.
Instead of maintaining a full accounting system and preparing financial statements, household businesses are only required to keep one record:
The purpose of this ledger is to record revenue generated from business activities and provide supporting information for tax administration purposes.
Maintaining accurate revenue records not only helps businesses comply with tax regulations but also allows owners to monitor business performance and track whether they are approaching the VND 1 billion threshold.
4. Are E-Invoices Mandatory?
For household businesses with annual revenue of VND 1 billion or less, the use of e-invoices is not mandatory.
However, if a business needs to issue invoices to customers or business partners, it may voluntarily register to use electronic invoices in accordance with Vietnamese regulations.
In practice, many household businesses choose to adopt e-invoices from the beginning in order to:
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Improve professionalism.
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Meet the requirements of corporate customers.
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Simplify revenue and document management.
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Prepare for future business growth.
5. What Happens If Revenue Exceeds VND 1 Billion?
This is one of the most important compliance issues that household businesses should pay attention to.
The VND 1 billion threshold is not merely a reference point. It is the basis for determining the applicable tax administration regime.
Once cumulative revenue exceeds VND 1 billion, the household business must transition to the tax declaration and payment requirements applicable to higher-revenue household businesses under Vietnamese tax regulations.
For example:
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Cumulative revenue from Quarter 1 and Quarter 2: VND 450 million
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Additional revenue generated in Quarter 3: VND 650 million
Total cumulative revenue by the end of Quarter 3 reaches: VND 1.1 billion
In this situation, the household business must begin complying with the applicable tax declaration and payment requirements from Quarter 3, the period in which the threshold is exceeded.
This example highlights why ongoing revenue monitoring is essential. Businesses that only review revenue at year-end may miss the point at which their tax obligations change, potentially creating compliance risks.
Revenue Tracking Is the Key
For household businesses with annual revenue below VND 1 billion, tax and accounting requirements remain relatively simple. However, this does not mean that revenue tracking and record retention can be overlooked.
Accurate revenue recording, continuous monitoring of the VND 1 billion threshold, and timely reporting help businesses avoid compliance risks while creating a stronger foundation for future growth.
How Sliner Can Support Household Businesses
Many household businesses still rely on handwritten records or basic spreadsheets to track revenue. As business activity grows, managing revenue, monitoring regulatory thresholds, and preparing tax documentation can become increasingly challenging.
Sliner helps E-commerce household businesses:
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Monitor revenue and tax obligations.
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Prepare tax filings and supporting documentation.
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Develop financial management practices appropriate for business size and complexity.
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Establish processes for revenue recording and data management.
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Prepare for compliance requirements when revenue exceeds regulatory thresholds.
In addition, technology solutions such as GenBook help businesses centralize revenue data, monitor business performance in real time, and manage tax compliance more efficiently.
As a business grows, implementing structured financial processes from the beginning can save time, reduce compliance risks, and provide a solid foundation for sustainable growth.
