With the rapid growth of e-commerce, more and more individuals and households are engaging in business on e-commerce platforms. To ensure compliance with the law and avoid legal risks, a thorough understanding of tax responsibilities and related regulations is crucial. This article will provide detailed guidance on the tax obligations of household businesses, especially the significant changes from 2026 onwards.

According to Decree 01/2021 and Decision 3389, business households need to understand the regulations on tax declaration, tax classification, and especially the legal responsibilities when doing business on e-commerce platforms. Following the correct procedures will help you conduct business safely and sustainably.

The concept of Household Business

According to Clause 1, Article 79 of Decree 01/2021, a household business is an organization registered and established by an individual or members of a household and has the following characteristics:

Key features:

• Lack of legal personality : Sole proprietorships operate as individuals, not as legal entities like businesses.
• Number limit : An individual or household is only allowed to establish one sole proprietorship.
• Incompatible with sole proprietorships : Cannot simultaneously be the owner of a sole proprietorship and a private enterprise, or a partner in a partnership.

Responsibilities for Filing and Paying Taxes

Unlimited liability

The most important point to note: Sole proprietorships are liable with all their assets for obligations arising from their business operations.

This means:

• Unlimited liability for all personal property.
• All income from all accounts (personal and business) is counted as household income.
• If a household has five bank accounts, money from all accounts is considered business income.
• Tax obligations apply to all of this revenue.

Declaration obligations

According to the regulations in Decision No. 40/2021-QD-TTg on tax management after inspection, business households need to:

• Register and file tax returns using the prescribed methods.
• Pay your taxes in full and on time.
• Keep legal documents and invoices.

Tax Classification Groups from 2026

From 2026, the tax classification system for household businesses will undergo significant changes. Currently (in 2025), household businesses apply two main tax calculation methods:

Method 1: Declaration based on revenue

This applies to small-scale businesses, with tax calculated as a percentage of revenue.

Method 2: Declaration based on income (Group 3)

For business households with higher revenue, tax is calculated based on actual income (revenue - reasonable expenses).

Important note from 2026:

• There may be adjustments to the revenue threshold for group classification.
• The requirements for documents and records will be updated.
• It is necessary to monitor new guidance documents from the tax authorities.

Documents and Paperwork Required

For all groups:

• Business registration certificate
• Accounting records (if applicable)
• Sales invoice (if applicable)
• Legitimate receipts and payment documents

Especially important for Group 3 (High Income):

Reasonable expenses are deductible when:

• We have all the necessary legal invoices and documents.
• Non-cash payment documents are required for transactions of 5 million VND or more.
• Costs directly related to business operations.

Some Important Notes

1. Time of invoice issuance

For the sale of goods: The time of issuing the invoice is when the ownership or use of the goods is transferred to the buyer, regardless of whether payment has been received or not .

This is especially important when:

• Delivery first, payment later.
• Installment sales
• Hand over the goods to the shipping company.

2. Legal responsibilities when doing business on the exchange.

Household businesses are liable with all their assets for obligations arising from business activities on e-commerce platforms, including:

• Disputes with customers
• Violations regarding product quality.
• Tax violations
• Other legal obligations

3. Managing bank accounts

According to Decision 3389, it is advisable to open a separate account to support business operations, which helps to:

• Clearly separate personal and business income and expenses.
• Easy to compare and file taxes.
• Minimize legal risks.

4. Reasonable costs for Group 3

This is EXTREMELY IMPORTANT if you belong to the high-revenue group:

• All transactions of 5 million VND or more must be paid using non-cash methods (bank transfer, card).
• A valid VAT invoice is required.
• If the conditions are not met, that expense is NOT deductible when calculating income tax.

5. Preparing for 2026

The planned changes from 2026 regarding tax classification will require business households to:

• Closely monitor new guidance documents.
• Prepare a more complete documentation system.
• The financial management system may need upgrading.

Conclude

Understanding tax obligations and following proper declaration procedures is a crucial responsibility for all businesses operating on e-commerce platforms. Especially with changes coming into effect in 2026, being prepared with necessary documents and understanding regulations will help you conduct business safely, comply with the law, and avoid unnecessary risks.

Note: Sole proprietorships have unlimited legal liability — protect your assets by complying with tax regulations!