The problem arises in practice.

"How much revenue is subject to taxation?" is the most common question for household businesses and individual entrepreneurs, especially in the context of tax policies being adjusted towards transparency and declaration based on actual revenue.

In reality, many cases do not incur tax obligations, but still require tax declaration. Therefore, correctly understanding the taxable revenue threshold and the scope of tax obligations is essential to avoid errors.

How is revenue defined in tax law?

According to regulations on tax management and taxation for household and individual businesses, revenue is defined as:

All proceeds from the sale of goods, provision of services, commissions, subsidies, surcharges, and other income received by business households and individual business owners, regardless of whether the money has been collected or not.

Revenue used to determine tax liability:

• Not based on profit
• No deductions.
• Regardless of the payment method
• Regardless of whether you sell online or offline.

Revenue threshold exempt from tax under current regulations.

Current regulations

On December 10, 2025, the National Assembly passed the amended Personal Income Tax Law.

According to the law that has been passed:

• The tax-exempt revenue threshold for household and individual businesses has been raised to 500 million VND per year.
• The amount of 500 million VND/year includes:
• Deduct before calculating tax based on a percentage of revenue.
• It also represents the revenue threshold for value-added tax exemption.

So:

Households and individual businesses with annual revenue not exceeding 500 million VND:

• No personal income tax payable.
• No value-added tax payable.
• But you still have to fulfill your tax filing obligations as required.

Tax declaration and payment are carried out as follows:

• Monthly or quarterly filing period (depending on availability)
• Actual revenue generated during the period

In the case of revenue exceeding 500 million VND/year

When revenue exceeds 500 million VND per year, tax obligations begin to arise.

According to the Personal Income Tax Law (amended):

Tax obligations arise

• Value added tax must be paid.
• Personal income tax must be paid.

Method of calculating VAT based on revenue

(Applicable to all household business groups)

Tax rate table:

Methods for calculating personal income tax on income

(Applicable to household businesses with annual revenue exceeding 500 million VND/year)

Tax rate table (based on income):

Note:

• Household businesses with annual revenue ranging from 500 million to 3 billion VND/year: can choose to apply personal income tax calculation based on income or revenue.
• Household businesses with annual revenue exceeding 3 billion VND/year: Personal income tax must be calculated on income (except for the property rental group, which calculates personal income tax based on revenue).

Method of calculating personal income tax based on revenue

(Applicable to household businesses with annual revenue from VND 500 million to VND 3 billion/year)

Tax Rate Table

How to determine revenue for comparison with the 500 million VND mark.

Revenue is determined according to the following principles:

• Calculated according to the Gregorian calendar year.
• Combine all business activities
• Regardless of profession
• Regardless of sales channel

If a business does not operate for a full 12 months, revenue is calculated based on actual revenue generated during the year, without converting it to a full 12-month period.

The obligation to file a tax return even if you are not required to pay taxes.

Even if revenue doesn't exceed 500 million VND/year, business owners may still have to:

• File periodic tax returns.
• Provide information when requested by the tax authorities.
• Provide explanations for revenue when data is audited or reconciled.

Therefore, not having to pay tax ≠ not having to file a tax return.

Conclude

It can be summarized as follows:

• Revenue ≤ 500 million VND/year:
• No VAT or personal income tax is payable (according to the amended Personal Income Tax Law that has been passed).
• Revenue > 500 million VND/year:
• Tax obligations arise according to regulations.
• Revenue refers to gross revenue, not profit.
• The obligation to file tax returns must still be fulfilled, even if no tax liability arises.

Understanding the situation correctly from the outset is the only way to avoid legal risks in long-term sales.