Frequently Asked Questions & Mistakes to Avoid in Business

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, infrequent 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/county level where the business is located

Processing Time: 3-5 business days.

Do household businesses need an accountant?

Answer: Not mandatory:

• Household businesses and individual business owners are not required to hire an accountant, but they must maintain accounting records according to Circular 152/2025/TT-BTC: the representative can keep records themselves, arrange for an accountant, or hire accounting services (Articles 1 and 2).
• The accountant can be: the business owner, a family member, or an external service.
• No accounting qualification is required.

Tax and Revenue

At what revenue level do I have to pay taxes?

Answer: From January 1, 2026, household businesses and individual business owners with annual revenue of 1 billion VND or less are exempt from VAT and personal income tax (PIT); above 1 billion VND, they are subject to VAT and PIT (Decree 68/2026/ND-CP, Articles 3 and 4, as amended by Decree 141/2026/ND-CP).

Revenue/Year	VAT	PIT
≤ 1 billion VND (from 01/01/2026)	Exempt	Exempt
> 1 billion VND (from 01/01/2026)	Payable	Payable

Calculation Methods:

• VAT: Household businesses and individual business owners with annual revenue exceeding 1 billion VND will pay VAT using the direct calculation method, calculated by applying a percentage rate to their revenue. The percentage rate and taxable revenue are determined according to Law on Value Added Tax 48/2024/QH15 and its guiding documents (Decree 68/2026/ND-CP, Article 3, Clause 2, as amended by Decree 141/2026/ND-CP). Please consult an accountant for the applicable rate for your industry or profession.
• PIT: Household businesses and individual business owners with annual revenue from over 1 billion VND to 3 billion VND can choose to pay tax based on taxable income (revenue minus expenses) multiplied by a 15% tax rate, or based on the portion of revenue exceeding 1 billion VND multiplied by a tax rate ranging from 0.5% to 5% depending on the industry or profession. Annual revenue above 3 billion VND will be calculated based on taxable income (Law on Personal Income Tax 109/2025/QH15, Article 7, Clauses 2 and 3; Law 09/2026/QH16, Article 1, delegates to the Government the power to set this revenue threshold, which is set at 1 billion VND by Decree 68/2026/ND-CP, Article 4, Clauses 1 and 5, as amended by Decree 141/2026/ND-CP). If you choose to calculate based on taxable income, you must maintain this method consistently for 02 consecutive years from the first year of application (Decree 68/2026/ND-CP, Article 4, Clause 5(d), as amended by Decree 141/2026/ND-CP). For real estate rental income specifically, please consult an accountant.

If I sell on Shopee and Lazada, who pays the tax?

Answer: E-commerce platforms have both online ordering and payment functions that are responsible for deducting, declaring, and paying taxes for each transaction by business households (Decree 68/2026/ND-CP, Article 11, Clause 1). For platforms without online ordering and payment functions, business households and resident individuals must self-declare and pay taxes (Article 11, Clause 2). For platforms with only one of these functions: please consult an accountant.

Note: E-commerce platforms may provide revenue data to tax authorities, so you need to declare correctly.

What is the tax rate for the retail goods industry?

Answer:

• VAT: percentage rate by industry/profession: please consult an accountant (Decree 68/2026/ND-CP, Article 3, Clause 2)
• Personal Income Tax: Law on Personal Income Tax 109/2025/QH15, Article 7, Clause 3, Point b stipulates a tax rate of 0.5% for distribution and supply of goods, calculated on the revenue exceeding VND 1 billion, applicable when annual revenue is from VND 1 billion to VND 3 billion and you choose to pay tax at a rate of (x) revenue (Law 09/2026/QH16, Article 1, delegates to the Government to specify this revenue threshold, and that threshold is VND 1 billion according to Decree 68/2026/ND-CP, Article 4, Clause 1, as amended by Decree 141/2026/ND-CP). Please consult an accountant to see if your retail activities fall under the "distribution, supply of goods" category.

Annual revenue of VND 1 billion or less is not subject to VAT and no Personal Income Tax is payable (Decree 68/2026/ND-CP, Articles 3 and 4, as amended by Decree 141/2026/ND-CP). For annual revenue above this level, please consult an accountant to calculate the tax for your specific case.

Does taxable revenue include discounts and promotions?

Answer: For Personal Income Tax, revenue includes all proceeds from sales, processing, and services, including subsidies, surcharges, and additional charges received by business households and individuals, regardless of whether the money has been collected or not. Revenue does not include commercial discounts, sales returns, and the value of returned goods. Amounts you receive such as bonuses, sales achievement support, promotions, payment discounts, and cash or non-cash support are considered revenue (Decree 68/2026/ND-CP, Article 5, Clause 1). For VAT: please consult an accountant.

Example:

• Original price: 1 million VND
• 20% discount: -200,000 VND
• Revenue for tax calculation (Personal Income Tax): 800,000 VND

Do I have to pay taxes if I sell at a loss?

Answer: You may still have to pay if taxes are calculated based on revenue (without deducting expenses).

If you want to calculate taxes based on actual income (revenue - expenses), you need to:

• Register for the declaration method
• Have complete books and supporting documents
• Prove legitimate expenses

Electronic Invoices

When is it mandatory to issue electronic invoices?

Answer:

• Business households and individual businesses with annual revenue exceeding VND 1 billion, or those selling assets requiring registration of ownership or usage rights, must use e-invoices with tax authority codes or e-invoices generated from point-of-sale machines connected to the tax authority's data (Decree 254/2026/ND-CP, Article 6, Clause 1, Point d, effective from July 1, 2026; Decree 68/2026/ND-CP, Article 8, Clause 5, as amended by Decree 141/2026/ND-CP). Certain cases are exempt from using e-invoices, such as income from real estate rental, or acting as lottery or insurance agents, or in multi-level marketing where the business has already deducted taxes (Decree 254/2026/ND-CP, Article 7).
• Households with prior year revenue not exceeding VND 1 billion (excluding households registered to use e-invoices according to Article 8, Clause 5, Point b) whose tax year revenue exceeds VND 1 billion must apply e-invoices with tax authority codes or e-invoices generated from point-of-sale machines. Registration must be done within 30 days from the last day of the tax period with cumulative revenue exceeding VND 1 billion (Decree 68/2026/ND-CP, Article 8, Clause 5, Point c, as amended by Decree 141/2026/ND-CP). New businesses: please consult your accountant.
• Business households and individual businesses with annual revenue of VND 1 billion or less, who meet the conditions and have the need, can register to use e-invoices (Decree 68/2026/ND-CP, Article 8, Clause 5, Point b, as amended by Decree 141/2026/ND-CP). Specifically, for the sale of goods and provision of services directly to consumers (retail, excluding cars, motorcycles, other motor vehicles; food and beverages; restaurants; hotels and other activities specified in the document), Decree 254/2026/ND-CP, Article 6, Clause 1, Point c stipulates the use of e-invoices from point-of-sale machines. Please consult your accountant to determine if your case requires the use of e-invoices.
• Special cases: The tax authority issues e-invoices with codes for each occurrence (Decree 254/2026/ND-CP, Article 6, Clause 2).

How to handle incorrect invoice issuance?

Answer: Depending on the error on the invoice:

Error Type	Handling Method
Incorrect name, address, amount in words, or other content, but the tax code, amount on invoice, tax rate, tax amount, or goods are correct (excluding invoices from cash registers and invoices for asset sales requiring registration of ownership/usage rights: see last row)	Notify the buyer that the invoice was issued incorrectly. No re-issuance is required. Notify the tax authority using Form No. 04/SS-HĐĐT (Circular 91/2026/TT-BTC, Article 10, Clause 1, Point a). If you submit invoice data as a summary, consult your accountant.
Incorrect tax code, goods name, or goods not meeting specifications/quality, amount on invoice, tax rate, tax amount, or other mandatory content (excluding invoices from cash registers and invoices for asset sales requiring registration of ownership/usage rights: see last row)	The seller can choose to issue an adjustment invoice or a replacement invoice. Before doing so: if the buyer is an organization, household business, or individual business, both parties must sign a written agreement stating the incorrect content; if the buyer is an individual, the seller must notify the buyer or post a notification on the seller's website (if available). In some cases, a written agreement is not required, e.g., sales on e-commerce platforms (Circular 91/2026/TT-BTC, Article 10, Clause 1, Point b). Regarding tax declaration for which period, consult your accountant.
The incorrect invoice is an electronic invoice from a cash register, or an invoice for asset sales subject to ownership/usage rights registration	The seller shall issue a replacement invoice for the incorrectly issued invoice, except for cases specified in Clause 5, Point c.2 (registered assets registered under the buyer's name that the buyer returns: if the buyer is an electronic invoice user, the buyer shall issue a return invoice to the seller; consult your accountant) (Circular 91/2026/TT-BTC, Article 10, Clause 1, Point c, Clause 5, Point c.2)

Note: Replacement/adjustment invoices must clearly state "Replaces/Adjusts invoice no... dated..."

What if retail customers don't need an invoice?

Answer: You still must:

• Record revenue in your books.
• Declare taxes fully.
• Consult your accountant on how and when to issue invoices for retail customers. If the buyer does not provide a name, address, or personal identification number, the invoice should clearly state "Sold to consumer" (Decree 254/2026/NĐ-CP, Appendix, Point 4, Section b). In some special sales cases, the buyer's name, address, and identification number are not required (Appendix, Point 9). Invoices issued to consumers cannot be used for expense accounting or tax settlement for businesses or households purchasing goods.

Do electronic invoices need to be printed?

Answer: Not required. Electronic invoices have the same legal validity as paper ones. Only print when requested by the customer or for internal archiving.

Tax Declaration and Payment

Should tax be declared monthly or quarterly?

Answer:

Condition	Filing Period
Annual revenue from 0 to 1 billion VND	No periodic tax filing: notify actual revenue incurred during the year, no later than January 31st of the following year (Decree 68/2026/ND-CP, Article 8, Clause 1, Point a)
Annual revenue from over 1 billion to 50 billion VND	Quarterly (Decree 68/2026/ND-CP, Article 10, Clause 1, Point a)
Annual revenue over 50 billion VND	Monthly (Decree 68/2026/ND-CP, Article 10, Clause 1, Point b)
Newly established household business	Cumulative revenue up to 1 billion VND: submit revenue notification; when exceeding 1 billion VND: quarterly tax filing from the quarter it occurs (Decree 68/2026/ND-CP, Article 9)

What are the deadlines for submitting tax declarations and payments?

Answer:

Filing Period	Tax Declaration Deadline	Payment Deadline
Monthly	20th of the following month	Same as the tax declaration
Quarterly	Last day of the first month of the following quarter	Same as the tax declaration
Annually (final settlement)	March 31st of the following year	Same as the tax declaration

Note: The deadline for submitting tax declarations is in accordance with Decree 68/2026/ND-CP, Article 8, Clause 3; the deadline for tax payment is no later than the last day of the tax declaration submission period (Point e). Late payments are subject to a late payment penalty of 0.03%/day on the overdue amount (Law on Tax Administration 108/2025/QH15, Article 16, Clause 2, Point a).

Is online filing possible?

Answer: Yes, through two methods:

1. HTKK + Electronic Tax Portal: Prepare the declaration offline, submit online
2. Direct Filing: Go to thuedientu.gdt.gov.vn, fill out and submit directly

Regulations: Household businesses and individual businesses must submit tax declarations electronically; elderly individuals, people with disabilities, and certain special cases who cannot conduct electronic transactions may submit their declarations in person or via postal services to the commune-level Public Administration Service Center (Decree 68/2026/ND-CP, Article 8, Clause 4, Point a).

If there is no revenue in a period, do I need to file?

Answer: Household businesses and individual businesses with annual revenue from 0 to 1 billion VND do not file taxes periodically but must notify the tax authority of the actual revenue incurred during the year, no later than January 31st of the following year (Decree 68/2026/ND-CP, Article 8, Clause 1, Point a). For periods with no revenue for businesses subject to quarterly filing, please consult your accountant.

Expenses and Deductions

Which expenses are deductible when calculating tax?

Answer: When calculating personal income tax based on taxable income (revenue minus expenses), deductible expenses include:

1. Costs of raw materials, materials, fuel, energy, goods used in production and business
2. Costs of salaries, wages, bonuses, allowances, mandatory insurance, and payments to employees who have mandatory insurance contributions as prescribed; costs of salaries, wages, allowances, and payments to employees for periods less than 01 month
3. Depreciation of fixed assets used for production and business activities
4. Costs of outsourced services such as electricity, water, telephone, internet, transportation, asset rental, repair, and maintenance
5. Interest expenses on loans for production and business from credit institutions at the actual interest rate; for entities that are not credit institutions, the interest rate shall not exceed the level prescribed by the Civil Code
6. Other expenses directly related to production and business activities

Conditions: Actual expenses incurred related to production and business activities, with sufficient invoices and documents as prescribed, and for payments of VND 5 million or more each time, with non-cash payment documents (Decree 68/2026/ND-CP, Article 6, Clause 1).

Can purchases without invoices be deducted as expenses?

Answer: Principle: Expenses must have sufficient invoices and documents as prescribed to be deductible when calculating Personal Income Tax based on taxable income (Decree 68/2026/ND-CP, Article 6, Clause 1 and Clause 2, point b).

Exception: In some cases, a list can be used in lieu of an invoice. Please consult your accountant to see if your purchase falls into this category.

Can cash payments be deducted as expenses?

Answer:

• If you calculate Personal Income Tax based on taxable income (revenue minus expenses): for payments of VND 5 million or more each time, non-cash payment documents (e.g., bank transfer) are required for the expenses to be deductible (Decree 68/2026/ND-CP, Article 6, Clause 1).
• For payments under VND 5 million each time: Article 6, Clause 1 of Decree 68/2026/ND-CP uses the term "each time" and does not specify how to calculate when purchases are made multiple times within a day. However, the VAT regulations consider the sum of purchases from the same seller on the same day (Decree 181/2025/ND-CP, Article 26, Clause 3). Please consult your accountant. The expenses must still have valid invoices and supporting documents. If you calculate tax as a percentage of revenue, expenses do not affect the tax payable. For periods before 2026, please consult your accountant or the tax authorities.

How to calculate electricity and water costs for home-based businesses?

Answer: Expenses serving personal and family needs are not deductible, and you must separately track expenses serving business activities from those serving personal and family needs (Decree 68/2026/ND-CP, Article 6, Clause 2, point g). For methods of allocating electricity and water costs shared between a residence and a business location, please consult your accountant.

Hiring Employees

Is Personal Income Tax deductible when hiring employees?

Answer: Depending on the contract type and income level (applicable to resident individuals; for salaries and wages from the tax period of 2026 onwards):

Contract Type	Income Level	Withholding?
Labor contract from 03 months or more	After deducting mandatory insurance and family deductions (15.5 million VND/month for self, 6.2 million VND/month for each dependent), there is no taxable income left.	No
Labor contract from 03 months or more	Taxable income remains	Yes (5-35%, progressive tax rate)
No contract signed or labor contract under 03 months	Less than 05 million VND/time	No (10% withholding if requested by the individual)
No contract signed or labor contract under 03 months	From 05 million VND/time or more	Yes (10%)

Basis: Law on Personal Income Tax No. 109/2025/QH15, Article 8 Clause 2, Article 9 and Article 10 Clause 1; Decree No. 253/2026/ND-CP, Article 50 (effective from July 1, 2026). For payments made before July 1, 2026, when an individual has a commitment, or when calculating deductions for dependents: please consult your accountant.

Can salaries paid to family members be deducted as expenses?

Answer: It depends on whether that person is part of your business household. Salary, wages, and salary-like payments for business individuals, groups of business individuals, and members of business households are not deductible when calculating personal income tax (except for mandatory insurance contributions) (Decree No. 68/2026/ND-CP, Article 6 Clause 2, point c). For family members not part of the business household, please consult your accountant; the supporting documents should include:

• Employment contract (or service contract)
• Attendance sheet, payroll
• Proof of payment (salary or wage amounts not actually paid or without payment documents are not deductible: Decree No. 68/2026/ND-CP, Article 6 Clause 2, point c)

Note: Personal income tax must still be withheld if eligible.

Employees who quit mid-year, who will settle their personal income tax?

Answer:

• If the employee has a new job: The new company will settle the tax (if authorized).
• If the employee does not have a new job: The employee will settle the tax themselves at the tax office.

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 banner "HTKK"

Can HTKK be installed on a Mac?

Answer: Not directly. HTKK only runs on Windows. If you are using a Mac, you can:

• Install Windows via Boot Camp or a virtual machine (Parallels, VMware).
• File taxes directly on the web: thuedientu.gdt.gov.vn

What to do if you forget your electronic tax account password?

Answer:

1. Go to thuedientu.gdt.gov.vn
2. Click "Forgot Password"
3. Enter your tax identification number and registered email
4. Follow the instructions to reset your password

If you are unable to do so, please contact your managing Tax Branch for assistance.

Part 2: Common Mistakes to Avoid

Mistakes regarding business registration

No.	Mistake	Consequence	How to avoid
1	Thinking online sales don't require registration	May be subject to administrative penalties	Ask an accountant or the business registration authority if you are required to register
2	Registering with the wrong business address	Invalid license	Use the actual business address
3	Not updating when changes occur	Information mismatch, difficulty issuing invoices	Notify of changes within 10 days

Tax and Revenue Mistakes

No.	Mistake	Consequence	How to avoid
1	Not declaring revenue from e-commerce platforms	Back taxes + penalties (platforms report data to tax authorities)	Declare all revenue sources fully
2	Incorrectly calculating revenue thresholds	Incorrect tax rates applied	Aggregate 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 the original price (excluding discounts)	Overpaying taxes	For Personal Income Tax: calculate on revenue minus commercial discounts, sales allowances, and returned goods (Decree 68/2026/ND-CP, Article 5, Clause 1). For VAT: consult your accountant.
5	Not reporting revenue or failing to declare taxes when obligated	May be subject to administrative penalties for tax management	For annual revenue of VND 1 billion or less: report actual revenue by January 31 of the following year; for revenue over VND 1 billion: declare taxes quarterly, or monthly if annual revenue exceeds VND 50 billion (Decree 68/2026/ND-CP, Articles 8 and 10, amended by Decree 141/2026/ND-CP).

Invoice Mistakes

No.	Mistake	Consequence	How to avoid
1	Not keeping purchase invoices	Unable to prove expenses	Store accounting documents and books for at least 05 years (Circular 152/2025/TT-BTC, Article 3, Clause 2). Invoice retention periods follow tax laws: consult your accountant for applicable deadlines.
2	Issuing an invoice with incorrect information but not rectifying it	Invalid invoice	Rectify according to Circular 91/2026/TT-BTC, Article 10 (refer to the question about incorrect invoice issuance above).
3	Issuing an invoice before delivering goods	Violation of regulations	Issue invoices upon completion of the transaction
4	Not issuing an invoice when requested by a customer	Fines, loss of reputation	Issue invoices as requested
5	Deleting/canceling an invoice sent to a customer	Serious violation	Issue a replacement/adjusted invoice

Tax Declaration Mistakes

No.	Mistake	Consequence	How to Avoid
1	Late tax declaration submission	May be subject to administrative penalties for tax management violations (penalty amount: ask your accountant)	Set reminders before the deadline
2	Declaration submitted, but tax payment forgotten	Late payment interest of 0.03%/day	Pay tax immediately after submitting the declaration
3	Incorrect declaration period selected (monthly/quarterly)	Declaration rejected	Check carefully before submitting
4	Electronic receipt not saved	Difficulty proving submission	Save receipt immediately after submission
5	Using an outdated HTKK version	Declaration rejected	Update HTKK regularly

Expense Mistakes

No.	Mistake	Consequence	How to Avoid
1	Payments of VND 5 million or more made in cash per transaction	Expenses not deductible (when calculating taxable income)	Make bank transfers for payments of VND 5 million or more per transaction
2	Including personal expenses in business expenses	Disallowed during audits, may incur penalties	Separate personal and business expenses
3	Incorrect depreciation period for assets	Expenses disallowed	Follow Ministry of Finance regulations
4	Not tracking separate costs for combined residential and business premises	Portion of expenses for personal/family needs is not deductible	Separately track business expenses and personal/family expenses (Decree 68/2026/ND-CP, Article 6, Clause 2, Point g); for dividing shared expenses: ask your accountant
5	Purchasing goods without obtaining an invoice	Expenses not deductible	Always request an invoice

Employee Mistakes

No.	Mistake	Consequence	How to Avoid
1	Not withholding personal income tax (PIT) when required	Back taxes + penalties	Check withholding conditions
2	Withholding tax but not declaring it	Administrative penalties	Submit quarterly PIT withholding declarations (Circular 89/2026/TT-BTC, Article 22, Clause 1, Point a, applicable from July 1, 2026)
3	Forgetting year-end settlement	Employees cannot get tax refunds	Submit settlement by March 31
4	Not signing labor contracts	Legal risks, difficulty in deducting expenses	Sign contracts with all employees
5	Paying salaries without supporting documentation	Expenses not recognized	Keep payroll and payment vouchers

General Management Mistakes

No.	Mistake	Consequence	How to Avoid
1	Not separating personal and business accounts	Difficult to manage, hard to account for	Open a separate bank account
2	Not keeping records	Unable to grasp actual profit/loss	Record daily or use software
3	Not updating policy changes	Applying incorrect regulations	Monitor information from tax authorities
4	Tampering with tax documents	Legal violation	File supplementary/adjustment official documents
5	Not storing records for the required period	No proof during audits	Store accounting documents for at least 05 years (Circular 152/2025/TT-BTC, Article 3, Clause 2); invoices according to tax law

Checklist: Self-check for tax compliance

Monthly

• Summarize revenue from all sources
• Store purchase invoices
• Calculate salaries and deduct personal income tax (if applicable)
• Record expenses in ledgers

Quarterly

• Submit VAT and PIT declarations if required quarterly (no later than the last day 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

• Settle personal income tax for employees (before March 31st)
• Review all invoices and documents
• Back up accounting data
• Update to the latest HTKK version

When to seek expert advice

It is advisable to contact an accountant/tax consultant 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 intend to convert to a company

Support Contact

• General Tax Department Hotline: 1900 6199
• Website: www.gdt.gov.vn
• Electronic Tax Portal: thuedientu.gdt.gov.vn
• Local Tax Department: Search by your district/ward

Conclusion

From 2026, online business activities and small household businesses will enter a more strictly managed phase, based on actual revenue and interconnected data from e-commerce platforms, banks, and electronic invoices. Many old concepts such as the 100 million VND threshold or lump-sum tax will no longer apply. Instead, sellers need to clearly understand their declaration obligations, keep proper records, and correctly distinguish between revenue already subject to tax withholding 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 the key factor for sustainable business operations and legal compliance in the 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.