Vietnam’s Household Businesses in 2026: Reform for Sustainable Growth
From 2026, household businesses in Vietnam will transition into a new regulatory era: the presumptive tax regime will be phased out and replaced by the self-assessment system, requiring tax payments based on actual turnover. This structural change is significant and calls for proactive preparation. Three key areas demand immediate attention:
1. Shifting Business Mindsets
The government aims to have two million registered enterprises operating by 2030. To align with this national target, household businesses must establish a long-term growth vision, prepare for institutional compliance, and adopt appropriate management and accounting systems.
The abolition of presumptive taxation means revenue will no longer be estimated; transparency and accurate tax reporting become mandatory. This is not only a milestone in Vietnam’s tax administration reform but also a critical test for millions of household businesses to move toward formalization and professionalization. The shift offers both risks and rewards:
- Risks: Businesses must break entrenched habits, invest in digital tools, and allocate time and resources for accurate bookkeeping and tax compliance.
- Rewards: Enhanced transparency can unlock access to bank credit, attract partnerships with larger enterprises, and increase participation in broader economic value chains.
2. Strategic Business Planning Under New Regulations
According to the Ministry of Finance, there are approximately 5.2 million household businesses nationwide, providing employment for 8–9 million workers. Beginning in 2026, all will be required to file taxes through self-declaration.
This transition necessitates reliable recordkeeping. Tax authorities require accurate, auditable data to establish a credible tax base, pushing household businesses toward digital integration.
Under Decree 70/2025, from June 1, 2025, household businesses generating annual revenue of VND 1 billion or more must issue e-invoices via cash register systems. From January 1, 2026, the threshold will be lowered to VND 200 million (though there is an ongoing proposal to increase this to VND 500 million).
Another important issue arises: For household businesses selling goods on e-commerce platforms, are they required to issue invoices and declare revenue themselves?
According to Decree 117/2025, e-commerce platforms are classified into two categories:
- Platforms with integrated payment systems, and
- Platforms without payment systems.
So,
For platforms with integrated payment systems: Under Decree 117/2025, platforms are authorized to issue invoices, withhold, and remit taxes on behalf of vendors. Household businesses are exempt from self-issuance and tax filing for these transactions. Where revenue is below the taxable threshold, businesses may consolidate documents to claim refunds.
- For platforms without payment systems: Household businesses must still self-issue e-invoices and declare taxes independently.
3. Strengthening Legal and Regulatory Awareness
To operate sustainably under the new framework, household businesses must enhance their understanding of relevant laws and regulations, including:
- Business registration and licensing requirements.
- Labor law and employee compliance obligations.
- Core principles of civil and criminal law.
- Sanctions for non-compliance, including administrative penalties and tax reassessments.
Compiled by Võ Phan Sử – Director, AS Audit Company
