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From 1 January 2026, household and individual businesses with annual revenue of VND 1 billion or less are not required to pay value added tax (VAT) or personal income tax (PIT) on their business activities. This is the biggest change for household businesses in 2026 and comes from two documents: Law No. 09/2026/QH16 dated 24 April 2026 (amending the Laws on PIT, VAT, CIT and Special Consumption Tax) and Decree No. 141/2026/ND-CP dated 29 April 2026 (amending Decree 68/2026/ND-CP on tax policy for household and individual businesses).

Below, ATAX summarizes what household businesses and their accountants need to know.

1. The law no longer fixes the revenue threshold; the Government sets it

Before Law 09/2026/QH16, the non-taxable revenue threshold was written directly into the law: VND 500 million per year in clause 1, Article 7 of PIT Law No. 109/2025/QH15 and clause 25, Article 5 of the VAT Law (as amended by Law No. 149/2025/QH15).

Law 09/2026/QH16 amends both provisions:

• Article 1 (amending clause 1, Article 7 of the PIT Law): resident individuals engaged in production and business with annual revenue at or below the level prescribed by the Government are not required to pay PIT.
• Article 2 (amending clause 25, Article 5 of the VAT Law): goods and services of households and individuals with annual revenue at or below the level prescribed by the Government are not subject to VAT.

The Government will set the threshold based on macroeconomic indicators and budget capacity for each period. In other words, the threshold can now be adjusted by decree without amending the law.

2. The specific threshold: raised from VND 500 million to VND 1 billion

Immediately after the Law was adopted, clause 1, Article 1 of Decree 141/2026/ND-CP replaced "VND 500 million" with "VND 1 billion" throughout Decree 68/2026/ND-CP (Articles 3, 4, clause 1 Article 8, Articles 9, 10, clause 3 Article 11, clauses 1 and 2 Article 12, clause 4 Article 17, clause 3 Article 18).

Articles 1 and 2 of Law 09/2026/QH16 and Decree 141/2026/ND-CP all take effect from 1 January 2026, so they apply to the whole 2026 tax year.

3. New e-invoice rules for household businesses

Clause 2, Article 1 of Decree 141/2026/ND-CP amends clause 5, Article 8 of Decree 68/2026/ND-CP, linking e-invoice obligations to the same VND 1 billion threshold:

• Annual revenue above VND 1 billion: must use e-invoices with a tax authority code or e-invoices generated from cash registers connected to the tax authority. Households with several business locations use one tax code for all shops and must show the location code on each invoice.
• Annual revenue of VND 1 billion or less: not mandatory; if eligible and needed, they may register to use either type of e-invoice.
• New households, or households that did not exceed VND 1 billion in the previous year but exceed it during the year: must switch to e-invoices and register within 30 days from the last day of the tax period in which cumulative revenue exceeds VND 1 billion.

4. What if tax was already declared and paid under the old threshold?

Under clause 1, Article 4 of Decree 141/2026/ND-CP, household and individual businesses that determine their annual revenue is VND 1 billion or less but have already declared and paid PIT and VAT under Decree 68/2026/ND-CP may have the tax paid handled in accordance with Article 12 of Decree 68/2026/ND-CP. Households should review the periods already paid in 2026 and request handling promptly.

Key points for household businesses and accountants

• Track cumulative revenue by period: exceeding VND 1 billion during the year triggers e-invoice obligations (30-day deadline) and tax obligations.
• "No tax payable" does not mean "no records": households must still keep documents and books to prove their revenue.
• The threshold is set by the Government and may change in future years; check for new regulations each year.
• Review tax paid since the start of 2026 and request handling under Article 12 of Decree 68/2026/ND-CP.

Frequently asked questions

Does a household business with revenue of exactly VND 1 billion per year pay tax?

No. The rule applies to annual revenue of "VND 1 billion or less", so exactly VND 1 billion is still exempt from VAT and PIT.

When do the new rules apply?

From 1 January 2026, under clause 2, Article 5 of Law 09/2026/QH16 and Article 3 of Decree 141/2026/ND-CP.

Can a household with revenue under VND 1 billion use e-invoices?

Yes. If eligible and needed, it may register to use e-invoices with a tax authority code or invoices generated from cash registers.

Full text (in Vietnamese): Law 09/2026/QH16 amending the Laws on PIT, VAT, CIT and Special Consumption Tax.

For advice on determining revenue, tax obligations and invoices under the new rules, please contact ATAX (atax.vn).