Summary of Notable New Tax Policies for Household Businesses in 2025

From 2025 to 2026, a series of new legal regulations on taxation will officially take effect, directly impacting household businesses, individual business owners, and enterprises operating on digital platforms. These changes are not only related to tax administration and the issuance of electronic invoices, but also affect the right to exit the country, payment methods, and the use of traditional tax identification numbers.

1. Household businesses with annual revenue from VND 1 billion must issue e-invoices via POS systems from June 1, 2025

According to Clause 8 Article 1 of Decree No. 70/2025/NĐ-CP (amending and supplementing Clause 1 Article 11 of Decree No. 123/2020/NĐ-CP), from June 1, 2025, household businesses and individual business owners with annual revenue from VND 1 billion or more and operating in sectors such as retail, supermarkets, restaurants, hotels, catering services, and passenger transport must use e-invoices generated from POS systems that are connected and transmit data to the tax authority.

2. From June 1, 2025: Elimination of the flat tax method for high-revenue household businesses

As mentioned above, from June 1, 2025, household businesses with annual revenue from VND 1 billion or more must use POS-generated e-invoices, meaning they will no longer be subject to the flat tax method.

At the same time, under Resolution No. 198/2025/QH15 of the National Assembly, from January 1, 2026, all household businesses and individual business owners will no longer apply the flat tax method, but will instead pay tax in accordance with the prevailing law on tax administration.

Household Businesses

3. Household business owners in tax debt will be temporarily barred from exiting the country from January 1, 2026

According to Clause 9 Article 6 of Law No. 56/2024/QH15, from January 1, 2026, household business owners who owe taxes will be temporarily barred from exiting the country until their tax obligations are fulfilled. Specifically, business individuals, household business owners, legal representatives of enterprises, cooperatives, and others subject to enforcement of administrative tax management decisions—or Vietnamese individuals emigrating abroad, overseas Vietnamese, or foreigners—who have not fulfilled their tax obligations in accordance with Government thresholds, will be subject to exit suspension under immigration laws. The tax authority is responsible for notifying taxpayers in advance of the application of this measure.

4. From April 1, 2025: E-commerce platforms must withhold and pay taxes on behalf of household/individual business owners

Point b Clause 5 Article 6 of Law No. 56/2024/QH15 adds Clause 4a as follows: For household/individual business owners operating on e-commerce platforms or digital platforms with payment functions (including both domestic and foreign organizations), such platforms shall be responsible for withholding, paying taxes on behalf of, and declaring the withheld taxes for household/individual business owners. In cases not subject to withholding, household/individual business owners shall be responsible for directly registering, declaring, and paying taxes.

5. From July 1, 2025: Major changes in tax identification numbers for individuals

According to Clause 2 Article 38 of Circular No. 86/2024/TT-BTC, from July 1, 2025, the personal identification number will replace the tax identification number for individuals, households, and household businesses. From this point on, all parties involved—including taxpayers, tax authorities, and other agencies/organizations/individuals—must use the personal identification number in accordance with Article 35 of the Law on Tax Administration 2019 instead of the current tax ID number.

6. Additional requirement for VAT deduction on invoices under VND 20 million from July 1, 2025

According to Point b Clause 2 Article 14 of the 2024 Value Added Tax Law, one of the conditions for deducting input VAT is that there must be proof of non-cash payment, including for goods and services valued under VND 20 million, except in specific cases defined by the Government. This is a significant change from current rules, which allow VAT deductions on small invoices without the need for electronic payment evidence.

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