Part 1: Frequently Asked Questions (FAQ)
Business Registration
Do I need to register my business for selling online?
Answer: It depends on the scale:
| Situation | Registration Required? |
|---|---|
| Small-scale, occasional sales | Not mandatory |
| Regular business with a fixed location | Registration required |
Note: Even if business registration is not mandatory, you must still register for tax if you have taxable income.
Where do I register my business?
Answer:
- Online: National Public Service Portal (dangkykinhdoanh.gov.vn) (Mainly for Enterprises)
- Offline: Finance - Planning Department at the district/ward level where the business is located
Processing Time: 3-5 business days.
Does a household business need an accountant?
Answer: Not mandatory:
- Household businesses that self-declare are not required to have an accountant, but must keep complete records.
- The accountant can be: the owner, a family member, or outsourced.
- No specific accounting degree is required.
Tax and Revenue
How much revenue requires tax payment?
Answer:
| Revenue/Year | VAT | Personal Income Tax (PIT) |
|---|---|---|
| ≤ 500 million VND | Exempt | Exempt |
| > 500 million VND | Payable | Payable |
Calculation Formula:
VAT = Revenue × VAT Rate (1-5%)
PIT = Revenue × PIT Rate (0.5-5%)
Who pays tax when selling on Shopee, Lazada?
Answer: The e-commerce platform is responsible for withholding VAT and PIT and remitting it on behalf of the seller.
Note: E-commerce platforms may provide revenue data to tax authorities, so accurate declaration is crucial.
What is the tax rate for the retail goods industry?
Answer:
- VAT: 1%
- PIT: 0.5%
Example: Revenue of 500 million VND/year
- VAT = 500 million VND × 1% = 5 million VND
- PIT = 500 million VND × 0.5% = 2.5 million VND
- Total Tax = 7.5 million VND
Does taxable revenue include discounts and promotions?
Answer: Taxable revenue = Actual collected revenue (after deducting discounts and price reductions).
Example:
- Original price: 1 million VND
- Discount 20%: -200,000 VND
- Taxable revenue: 800,000 VND
Do I have to pay tax if I make a loss?
Answer: You may still have to pay if tax is calculated based on revenue (without deducting expenses).
If you want to calculate tax based on actual income (revenue - expenses), you need to:
- Register for the declaration method.
- Keep complete records and supporting documents.
- Prove legitimate expenses.
Electronic Invoices
When is it mandatory to issue electronic invoices?
Answer:
- Household businesses/individuals declaring tax → must use electronic invoices.
- Special cases: Tax authorities issue invoices per transaction.
What to do if an invoice is issued incorrectly?
Answer: Depends on the timing of discovery:
| Timing | Resolution |
|---|---|
| Not yet sent to the buyer | Cancel the invoice, re-issue |
| Sent, but not yet declared for tax | Issue a replacement invoice |
| Tax has been declared | Issue an adjustment invoice |
Note: Replacement/adjustment invoices must clearly state "Replacement/Adjustment for invoice number... dated..."
What if a retail customer doesn't need an invoice?
Answer: You must still:
- Record the revenue in your books.
- Declare tax fully.
- You can issue a consolidated invoice at the end of the day for total retail sales (indicating "Retail Customer" in the buyer section).
Do electronic invoices need to be printed?
Answer: Not mandatory. Electronic invoices have the same legal validity as paper ones. Only print if the customer requests it or for internal record-keeping.
Tax Declaration and Payment
Should I declare taxes monthly or quarterly?
Answer:
| Condition | Declaration Period |
|---|---|
| VAT generated < 50 million VND/year | Quarterly |
| VAT generated ≥ 50 million VND/year | Monthly |
| Newly established household business | Quarterly (first year) |
What are the deadlines for submitting tax declarations and payments?
Answer:
| Declaration Period | Tax Declaration Deadline | Payment Deadline |
|---|---|---|
| Monthly | 20th of the following month | Same as declaration deadline |
| Quarterly | 30th of the first month of the following quarter | Same as declaration deadline |
| Annual (final settlement) | March 31st of the following year | Same as declaration deadline |
Note: Late submission incurs a penalty of 0.03%/day × the overdue amount.
Can I declare taxes online?
Answer: Yes, via two methods:
- HTKK + Electronic Tax Portal: Prepare the declaration offline, submit online.
- Direct Declaration: Go to thuedientu.gdt.gov.vn, declare and submit directly.
Requirement: You must have a digital signature (USB Token) to sign and submit declarations.
Do I need to declare if I have no revenue in a period?
Answer: Yes. If you are a self-declaring household business, you must still submit a zero declaration (a declaration with zero revenue).
Expenses and Deductions
What expenses are deductible for tax calculation?
Answer: 7 main types of expenses:
- Rent for premises
- Labor costs
- Electricity
- Water
- Telecommunications (Internet, phone)
- Management and sales expenses (stationery, depreciation, etc.)
- Other expenses (shipping, advertising, etc.)
Condition: Must have invoices/receipts and be directly related to the business.
Can I deduct expenses for purchases without invoices?
Answer: Principle: No invoice = No deduction.
Exceptions: In some cases, a list can be used as a substitute:
- Purchasing agricultural products from farmers
- Hiring temporary labor
- Buying small quantities of raw materials from markets
Are cash payments deductible as expenses?
Answer:
- Transactions ≤ 20 million VND: Deductible
- Transactions > 20 million VND: Must be paid via bank transfer to be deductible
How to calculate electricity and water expenses for home-based businesses?
Answer: Expenses must be allocated based on a reasonable proportion:
- By area: Business area / Total area
- By power consumption: Total power consumption of business equipment
Example: A 100m² house, using 30m² for the shop → Electricity cost for business = 30% × Total electricity bill.
Hiring Employees
Do I need to withhold PIT when hiring employees?
Answer: Depends on the contract type and salary:
| Contract Type | Income Level | Withholding? |
|---|---|---|
| Employment Contract ≥ 3 months | ≤ 11 million VND/month | No |
| Employment Contract ≥ 3 months | > 11 million VND/month | Yes (5-35%) |
| Employment Contract < 3 months | ≤ 2 million VND/instance | No |
| Employment Contract < 3 months | > 2 million VND/instance | Yes (10%) |
Can I deduct salaries paid to family members as expenses?
Answer: Yes, if:
- There is an employment contract (or service contract).
- There are attendance records and payroll.
- There are payment receipts.
- The salary is reasonable for the work performed.
Note: PIT must still be withheld if conditions are met.
If an employee leaves mid-year, who handles their tax finalization?
Answer:
- If the employee has a new job: The new company handles the finalization (if authorized).
- If the employee does not have a new job: The employee must finalize their taxes at the tax authority.
HTKK Software
Is HTKK free?
Answer: Yes. HTKK is free software provided by the General Department of Taxation.
Download: www.gdt.gov.vn → Find the "HTKK" banner.
Can HTKK be installed on a Mac?
Answer: Not directly. HTKK only runs on Windows. If you use a Mac, you can:
- Install Windows via Boot Camp or a virtual machine (Parallels, VMware).
- Declare directly on the web: thuedientu.gdt.gov.vn.
What if I forget my e-tax account password?
Answer:
- Go to thuedientu.gdt.gov.vn.
- Click "Forgot password".
- Enter your tax identification number and registered email.
- Follow the instructions to reset your password.
If you encounter issues, contact your local Tax Department for assistance.
Part 2: Common Mistakes to Avoid
Business Registration Mistakes
| No. | Mistake | Consequences | How to Avoid |
|---|---|---|---|
| 1 | Thinking online sales don't require registration | Administrative penalties, back taxes | Register when revenue exceeds 100 million VND/year |
| 2 | Registering the wrong business address | Invalid business license | Use the actual business operating address |
| 3 | Failure to update changes | Information mismatch, difficulty issuing invoices | Notify changes within 10 days |
Tax and Revenue Mistakes
| No. | Mistake | Consequences | How to Avoid |
|---|---|---|---|
| 1 | Not declaring revenue from e-commerce platforms | Back taxes + penalties (platforms report data to tax authorities) | Declare all sources of income fully |
| 2 | Incorrectly calculating revenue thresholds | Applying incorrect tax rates | Consolidate revenue from all sources |
| 3 | Choosing the wrong industry code (tax rate) | Overpaying or underpaying taxes | Confirm with the Tax Department |
| 4 | Calculating tax on original price (without deducting discounts) | Overpaying taxes | Calculate on actual collected revenue |
| 5 | Not declaring when there is no revenue | Penalty for failure to submit declaration | Submit a zero declaration |
Invoice Mistakes
| No. | Mistake | Consequences | How to Avoid |
|---|---|---|---|
| 1 | Not keeping purchase invoices | Cannot prove expenses | Retain all invoices for at least 5 years |
| 2 | Issuing incorrect invoices but not rectifying | Invalid invoices | Issue replacement/adjustment invoices |
| 3 | Issuing invoices before delivering goods | Violation of regulations | Issue invoices upon completion of the transaction |
| 4 | Not issuing invoices when requested by customers | Penalties, loss of reputation | Issue invoices as requested |
| 5 | Deleting/canceling invoices sent to customers | Serious violation | Issue replacement/adjustment invoices |
Tax Declaration Mistakes
| No. | Mistake | Consequences | How to Avoid |
|---|---|---|---|
| 1 | Submitting tax declarations late | Fine of 2-25 million VND | Set reminders before the deadline |
| 2 | Submitting declaration but forgetting to pay tax | Late payment penalty of 0.03%/day | Pay tax immediately after submitting the declaration |
| 3 | Choosing the wrong declaration period (monthly/quarterly) | Declaration rejected | Check carefully before submitting |
| 4 | Not saving electronic receipts | Difficulty proving submission | Save receipts immediately after submission |
| 5 | Using an outdated version of HTKK | Declaration rejected | Update HTKK regularly |
Expense Mistakes
| No. | Mistake | Consequences | How to Avoid |
|---|---|---|---|
| 1 | Paying over 20 million VND in cash | Expenses not deductible | Use bank transfer for large transactions |
| 2 | Including personal expenses in business costs | Expenses disallowed upon audit, potential penalties | Separate personal and business expenses |
| 3 | Incorrectly calculating asset depreciation periods | Expenses disallowed | Follow Ministry of Finance regulations |
| 4 | Not allocating shared expenses | Expenses disallowed upon audit | Allocate based on reasonable proportion |
| 5 | Purchasing goods without invoices | Expenses not deductible | Always request invoices |
Employee Mistakes
| No. | Mistake | Consequences | How to Avoid |
|---|---|---|---|
| 1 | Not withholding PIT when required | Back taxes + penalties | Check withholding conditions |
| 2 | Withholding tax but not declaring it | Administrative penalties | Submit monthly/quarterly declarations |
| 3 | Forgetting year-end tax finalization | Employees unable to get tax refunds | Submit finalization by March 31st |
| 4 | Not signing employment contracts | Legal risks, difficulty claiming expenses | Sign contracts with all employees |
| 5 | Paying salaries without documentation | Expenses not recognized | Keep payroll records and payment receipts |
General Management Mistakes
| No. | Mistake | Consequences | How to Avoid |
|---|---|---|---|
| 1 | Not separating personal and business accounts | Difficult to manage, hard to justify | Open a separate bank account |
| 2 | Not keeping accounting records | Unable to track actual profit/loss | Record daily or use accounting software |
| 3 | Not updating policy changes | Applying incorrect regulations | Monitor information from tax authorities |
| 4 | Illegally altering tax records | Legal violation | Submit official supplementary/amended records |
| 5 | Not retaining records for the required period | No evidence during audits | Retain records for at least 5-10 years |
Checklist: Self-Audit for Tax Compliance
Monthly
- Consolidate revenue from all sources
- Retain purchase invoices
- Calculate salaries and withhold PIT (if applicable)
- Record expenses in books
Quarterly
- Submit VAT and PIT declarations (by the 30th of the first month of the following quarter)
- Pay taxes (by the same deadline)
- Check tax debt status on thuedientu.gdt.gov.vn
Year-End
- Finalize PIT for employees (by March 31st)
- Review all invoices and receipts
- Back up accounting data
- Update to the latest HTKK version
When to Seek Expert Advice?
Contact an accountant/tax advisor when:
- Revenue exceeds 1 billion VND/year
- There are import/export transactions
- There are multiple branches/business locations
- The tax authority requests an explanation
- You plan to convert to a company
Support Contacts
- General Department of Taxation Hotline: 1900 6199
- Website: www.gdt.gov.vn
- Electronic Tax Portal: thuedientu.gdt.gov.vn
- Local Tax Department: Search by your district/ward
Conclusion
Starting in 2026, online business activities and small household businesses will enter a phase of stricter management, based on actual revenue and integrated data from e-commerce platforms, banks, and electronic invoices. Many old concepts like the 100 million VND threshold or lump-sum tax are no longer applicable. Instead, sellers need to clearly understand their declaration obligations, bookkeeping, and correctly differentiate revenue from which tax has been withheld by the platform. Misunderstanding regulations or applying old laws can lead to incorrect declarations, back taxes, and penalties. Systematically managing revenue, expenses, invoices, and personnel from the outset is crucial for sustainable business and legal compliance in this new era. GTG CRM helps you manage revenue, expenses, invoices, and employees in a single system—minimizing errors and ensuring tax compliance. Try for free.
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