Question: I am an individual conducting small scale business activities and generating revenue annually. Recently I learned that the Government issued Decree 68/2026/NĐ-CP and the Ministry of Finance issued Circular 18/2026/TT-BTC with many new provisions on tax declaration, tax payment and electronic invoices applicable to household businesses and individual businesses. Under the new regulations, how are the obligations on tax declaration, tax payment and the use of electronic invoices of household businesses and individual businesses regulated? In addition, what responsibilities must taxpayers perform to ensure compliance with tax law?
Answer:
Currently, Decree 68/2026/NĐ-CP and Circular 18/2026/TT-BTC are legal instruments providing tax policies and tax administration procedures applicable to household businesses and individual businesses. These instruments regulate the determination of revenue, tax declaration, tax calculation, tax payment, the use of electronic invoices and the responsibilities of taxpayers as well as relevant authorities in the tax administration process.
- Provisions on tax declaration and tax payment based on the revenue level of household businesses and individual businesses
According to Decree 68/2026/NĐ-CP, household businesses and individual businesses must self determine revenue and perform corresponding tax obligations according to different revenue thresholds:
- In cases where annual revenue is 500 million dong or less, the taxpayer is not subject to value added tax and is not required to pay personal income tax, but must notify the tax authority of the actual revenue arising during the year within the prescribed time limit.
- In cases where annual revenue exceeds 500 million dong, the taxpayer must declare and pay value added tax and personal income tax in accordance with regulations.
- Depending on the applicable personal income tax calculation method, the taxpayer may carry out tax declaration on a quarterly or monthly basis and must carry out annual personal income tax finalization.
Legal basis: Article 3, Article 4, Article 8, Article 10 Decree 68/2026/NĐ-CP.
- Provisions on the use of electronic invoices for household businesses and individual businesses
Tax law provides that the application of electronic invoices to household businesses and individual businesses is based on the level of revenue subject to value added tax. Specifically:
- Household businesses and individual businesses with revenue for value added tax calculation from 01 billion dong or more must use electronic invoices with authentication codes of the tax authority or electronic invoices generated from cash registers connected to the tax authority data system.
- In cases where revenue is from above 500 million dong to below 01 billion dong, the use of electronic invoices is not mandatory, but registration for use is permitted if conditions are satisfied and there is a demand.
- In cases where a newly established business household or individual conducting business as prescribed in Article 9 of Decree 68/2026/ND-CP, or a business household or individual whose value-added tax (VAT) taxable revenue in the preceding year was less than 01 billion dong but whose VAT taxable revenue in the current tax year reaches 01 billion dong or more, registration for the application of electronic invoices with the tax authority’s authentication code or electronic invoices generated from cash registers connected to the tax authority’s data system must be carried out within 30 days from the last day of the tax period in which the cumulative VAT taxable revenue reaches 01 billion dong or more.
Legal basis: Article 8, Article 9 Decree 68/2026/NĐ-CP.
- Responsibilities of household businesses and individual businesses in tax administration
Household businesses and individual businesses are responsible for proactively complying with tax obligations and providing information to the tax authority in accordance with the law. These responsibilities include, among others:
- Self declaring fully and accurately the revenue arising from production and business activities in order to determine the payable tax amount, and taking legal responsibility for the declared contents.
- Notifying the tax authority by electronic means of all payment accounts numbers and electronic wallet identification numbers related to production and business activities.
- Using accounting books and invoices in accordance with the provisions of law, and providing relevant documents and data at the request of the tax authority during tax inspection and tax administration.
- In addition, business households or individuals conducting business on e-commerce platforms are also subject to other responsibilities as prescribed in Clause 7 and Clause 8, Article 13 of Decree 68/2026/ND-CP.
Legal basis: Article 13 Decree 68/2026/NĐ-CP.
