End of presumptive tax from 2026: what should household businesses prepare?
From 1 Jan 2026, household businesses no longer pay lump-sum tax and must self-declare based on actual revenue. What owners need to do to comply and avoid penalties.
Under Resolution 198/2025/QH15 of the National Assembly on special mechanisms and policies for private economic development, the lump-sum tax regime for household businesses and individual business operators will end no later than 1 Jan 2026. This is the biggest change for household businesses in many years.
How Was Lump-Sum Tax Calculated Before?
Under the lump-sum regime, the tax authority set a fixed revenue level and tax amount for the whole year based on surveys and the household business's declaration. Owners paid according to the notice and did not need to keep detailed accounting records. This approach was simple but did not reflect actual revenue.
What Changes From 2026?
- Household businesses self-declare and self-pay tax based on actual revenue.
- They must track and record revenue and keep supporting documents for comparison when the tax authority requests them.
- Some households must use e-invoices; households with revenue of 1 billion VND per year or more must use e-invoices generated from cash registers under Decree 70/2025/ND-CP.
- Households with revenue below the taxable threshold are not required to pay value-added tax and personal income tax, but still need to track their revenue.
What Should Household Businesses Do When Lump-Sum Tax Ends?
- Record actual revenueUse sales software or a daily log
- Self-declare and pay tax on timeFollow the guidance of your managing tax authority
- Use e-invoices where requiredHouseholds with revenue of 1 billion VND per year use invoices from cash registers
- Prefer bank paymentsEasier to reconcile revenue and documents
What Should Owners Do Right Away?
Review Registration Information
Check that the household business registration certificate, tax code and business address match reality – especially after the administrative unit reorganization. Inaccurate information will cause difficulties when filing.
Set Up Revenue Records
Use sales software or a daily revenue log. Paying through bank accounts makes reconciliation more transparent.
Prepare for E-Invoices If Required
Contact an e-invoice provider and register with your managing tax authority before issuing invoices. See also our article on digital signatures and e-invoices.
Should You Convert to a Company?
Once you must declare and keep records like a business, many household businesses with large revenue consider setting up a company to gain limited liability, make it easier to work with partners and account for expenses properly. The Law on Enterprises allows household businesses to convert into enterprises and inherit their rights and obligations.
Not sure which category your household business falls under? HDS Law lawyers offer a free consultation and full-service household business procedures.
Legal basis
- Resolution 198/2025/QH15
- Decree 70/2025/ND-CP
Content reviewed by Lawyer Đoàn Minh Đức (Director – Managing Lawyer); updated 19 Oct 2026.
This article is for reference only, based on regulations as of the update date. For advice on your specific case, please contact a lawyer.
