New Tax Policy Guidelines for Household Businesses Under Decree 141/2026/ND-CP: Important Points Requiring Special Attention

Following the issuance of Decree 141/2026/ND-CP, many tax regulations applicable to household businesses (HBs) and individual businesses (IBs) have undergone significant changes. The most notable updates include increasing the tax exemption revenue threshold to VND 1 billion per year and implementing electronic invoices based on actual revenue.

To guide implementation, Tax Department No. 13 of Thanh Hoa Province issued Official Letter No. 1640/TCS13-NVDTPC in 2026 to clarify tax declaration, tax handling, and tax refund procedures for HBs and IBs during 2026.

The article below helps businesses and household businesses understand the important new regulations and practical guidance from tax authorities in order to minimize errors during tax declaration and payment procedures.

1. Official Increase of the Household Business Tax Exemption Threshold to VND 1 Billion per Year

One of the most impactful changes under Decree 141/2026/ND-CP is the increase of the revenue threshold exempt from VAT and Personal Income Tax (PIT) for household businesses and individual businesses from VND 500 million to VND 1 billion per year.

Under the new regulations:

HBs and IBs with annual revenue from production and business activities of VND 1 billion or less will:

• Not be subject to VAT;

• Not be required to pay PIT.

This amendment has been consistently revised across multiple provisions of Decree 68/2026/ND-CP to ensure uniform implementation in practice.

This is considered a significant support policy for small and micro household businesses amid increasing business costs and continuing financial pressure following the economic recovery period.

Increasing the tax exemption threshold also helps:

• Reduce tax declaration pressure for small household businesses;

• Encourage revenue transparency;

• Limit revenue splitting practices intended to avoid taxes;

• Support household businesses transitioning toward more professional management models.

However, it should be noted that:

• Tax exemption does not mean exemption from all tax administration obligations.

• HBs and IBs must still comply with requirements relating to revenue management, invoice issuance, and document retention in accordance with current regulations.

2. Household Businesses with Revenue Above VND 1 Billion Are Required to Use Electronic Invoices

Besides increasing the tax exemption threshold, Decree 141/2026/ND-CP also introduces mandatory electronic invoice regulations for household businesses with large revenue.

Mandatory Use of Tax Authority-Authenticated Electronic Invoices

According to guidance from tax authorities:

HBs and IBs with annual revenue exceeding VND 1 billion must use:

• Electronic invoices authenticated by tax authorities; or

• Electronic invoices generated from cash registers connected to tax authority data systems.

Revenue used to determine the VND 1 billion threshold includes:

• Taxable revenue;

• Tax-exempt revenue;

• Revenue not required for declaration;

• Other revenue related to business activities.

This regulation demonstrates the tax authority’s increasing focus on digitalized tax management and real-time revenue monitoring in the coming period.

Cases with Multiple Business Locations

For HBs and IBs operating multiple stores or business locations:

• They may use a common tax identification number;

• However, the business location code must be clearly indicated on invoices.

This helps tax authorities monitor revenue generated at each specific business establishment.

How Should Newly Exceeding Household Businesses Handle the Threshold?

An important point to note is:

If HBs or IBs did not exceed the VND 1 billion threshold in the previous year but their accumulated revenue during 2026 exceeds this threshold, they must switch to electronic invoice usage in accordance with regulations.

Registration deadline:

• Within 30 days from the last day of the tax period in which accumulated revenue exceeds the threshold.

This requires household businesses to:

• Regularly monitor revenue;

• Proactively prepare electronic invoice infrastructure;

• Avoid late registration that may result in administrative tax penalties.

3. Important Notes Household Businesses Need to Pay Special Attention To

According to Official Letter No. 1640/TCS13-NVDTPC issued in 2026, Decree 141/2026/ND-CP mainly adjusts:

• Tax exemption thresholds;

• Electronic invoice regulations.

Meanwhile, other issues such as:

• Tax declaration;

• Tax calculation;

• Tax finalization;

• Late payment handling;

• Handling of overpaid taxes;

continue to follow existing regulations under Decree 68/2026/ND-CP and related guiding circulars.

Invoices Must Be Issued for All Sales Transactions

A very important point often overlooked by many household businesses is:

HBs and IBs registered for electronic invoices must issue invoices for all sales and service transactions, even when customers do not request invoices.

This means:

• Small retail transactions must still be fully recorded in the electronic invoice system.

• Tax authorities may compare revenue data in real time.

Supplementation of Regulations on Single-Issue Electronic Invoices

The new decree also supplements a mechanism whereby:

• HBs and IBs may be granted electronic invoices by tax authorities for each individual transaction occurrence.

This regulation is suitable for:

• Small household businesses;

• Individual businesses without frequent transactions;

• Seasonal business cases.

4. How Should Household Businesses That Already Declared Q1/2026 Taxes Handle the Situation?

After Decree 141/2026/ND-CP raised the tax exemption threshold to VND 1 billion per year effective from January 1, 2026, many household businesses encountered situations where:

• They had already declared taxes for Q1/2026 under the old threshold;

• Some had even already paid taxes.

To address these cases, tax authorities provided specific guidance for each group.

Cases Where Tax Returns and Tax Payments Have Not Yet Been Submitted

For HBs whose revenue falls within the exempt threshold:

• No Q1/2026 tax declaration is required;

• Tax declaration should follow subsequent guidance from tax authorities.

Cases Where Tax Returns Were Submitted but Taxes Not Yet Paid

HBs may:

• Request cancellation of the submitted tax return; or

• Submit amended declarations adjusting taxable revenue to zero.

Cases Where Both Tax Returns and Tax Payments Were Already Submitted

If taxes have already been paid:
HBs may:

• Offset tax obligations against future tax periods; or

• Request tax refunds under current tax administration regulations.

This is particularly important because many household businesses had already completed Q1 tax obligations before the new decree officially took effect.

5. Official Tax Refunds for Household Businesses with Revenue Below VND 1 Billion

Another notable point under Decree 141/2026/ND-CP concerns transitional provisions regarding already-paid taxes.

Accordingly:
HBs and IBs whose actual annual revenue is VND 1 billion or less but who had already declared and paid VAT and PIT under previous regulations may receive:

• Tax offsets;

• Tax refunds;

• Combined refunds and state budget offsets;

for overpaid tax amounts.

Tax refund handling follows current tax administration laws.

Where Should Tax Refund Applications Be Submitted?

According to guidance:

• Tax refund dossiers must be submitted to the tax authority where the HB or IB files tax declarations.

For cases involving:

• Business conducted through e-commerce platforms;

• Taxes withheld and paid on behalf of sellers by platforms or intermediary organizations;

the competent receiving authority is:

• The tax authority managing the taxpayer’s place of residence.

6. What Should Enterprises and Household Businesses Prepare for the New Changes?

The changes introduced under Decree 141/2026/ND-CP demonstrate trends toward:

• Strengthening electronic data management;

• Increasing revenue transparency;

• Automating tax administration.

Therefore, household businesses and enterprises should proactively:

• Regularly monitor revenue;

• Check taxable revenue thresholds;

• Implement electronic invoices on time;

• Review Q1/2026 tax declaration dossiers;

• Prepare tax refund applications if overpayments exist;

• Standardize accounting and payment data.

Timely updates and compliance with the new regulations will not only help businesses minimize tax risks but also improve transparency and professionalism in long-term business operations.