Starting from 2026, household businesses will be classified into three groups for tax management, replacing the previous presumptive tax regime.

The Ministry of Finance has issued Decision No. 3389/QĐ-BTC approving the Project “Transformation of the Tax Management Model and Methods for Household Businesses upon the Abolition of the Presumptive Tax Regime.”

Accordingly, from 2026 onward, the tax authorities will completely terminate the collection of presumptive taxes and shift to a self-declaration and self-payment mechanism in accordance with the Law on Tax Administration.

The Project attached to Decision No. 3389/QĐ-BTC classifies household businesses into three new tax management groups as follows:

Group 1: Annual revenue below VND 200 million

• Exempt from Value Added Tax (VAT) and Personal Income Tax (PIT).
• Not required to maintain complex accounting books but must still file periodic declarations.
• May choose to declare taxes twice a year (at the beginning and in the middle or at the end of the year) or at another suitable time. 

Group 2: Annual revenue from VND 200 million to under VND 3 billion

• Continue to apply the direct tax calculation method based on revenue, as currently in place.
• Tax rates by business sector:
  • 1%: Distribution and supply of goods
  • 3%: Manufacturing, transportation, services associated with goods, and construction with material supply
  • 5%: Services and construction without material supply
  • 2%: Other business activities
• Tax declaration is made four times per year (quarterly).
• Households with annual revenue exceeding VND 1 billion in retail or direct-to-consumer services must issue e-invoices from cash registers connected to the tax authority.
• Households with annual revenue below VND 1 billion are not required to issue invoices but are encouraged to keep full revenue records.
• Household businesses with annual revenue exceeding VND 3 billion for two consecutive years will be reclassified into Group 3 starting from the third year. 

Group 3: Annual revenue above VND 3 billion

• Household businesses with annual revenue exceeding VND 3 billion for two consecutive years will be placed in this group.
• Apply the VAT credit method:
  VATpayable=OutputVAT−InputVATVAT payable = Output VAT – Input VATVATpayable=OutputVAT−InputVAT
• Personal Income Tax (PIT) is calculated at 17% of total profit, where:
  Profit=Revenue−ReasonableexpensesProfit = Revenue – Reasonable expensesProfit=Revenue−Reasonableexpenses
• Households with annual revenue over VND 50 billion must file monthly tax declarations; those below VND 50 billion file quarterly.
• Must issue e-invoices and open a separate business bank account.

The use of coded e-invoices or e-invoices generated from cash registers is mandatory.