Regulations on Electronic Invoices for Individual Business Households

Updated on 29/10/2026: Decree 254/2026/NĐ-CP comes into effect from 01/07/2026 (Article 43, Clause 1); from that date, Decree 123/2020/NĐ-CP and Decree 70/2025/NĐ-CP cease to be in effect (Article 43, Clause 2). Circular 91/2026/TT-BTC comes into effect from 01/07/2026 (Article 25, Clause 1); from that date, Circular 32/2025/TT-BTC ceases to be in effect (Article 25, Clause 2). The following sections on electronic invoices for business households and individual business operators have been updated according to these documents. If your situation does not match the content below, please consult an accountant.

To ensure proper compliance with regulations and avoid legal risks, business household owners need to have a solid understanding of the rules related to issuing, using, and managing electronic invoices. This article will clarify key points to help you conduct invoice issuance operations accurately and efficiently.

Concept of Electronic Invoices

Decree 254/2026/NĐ-CP, Article 3 (effective from 01/07/2026) explains electronic invoices with tax authority code (Clause 1), electronic invoices without tax authority code (Clause 2), and electronic invoices generated from point-of-sale machines connected to the tax authority's data system (Clause 3).

The first two types are understood as follows. The first type is invoices with tax authority code, assigned a code before being sent to the buyer. This code includes a unique transaction number and an encrypted character string based on the seller's information. The second type is invoices without tax authority code, self-prepared by the organization and sent directly to customers without prior verification from the tax authority.

Which Business Households Must Use Electronic Invoices

Business households and individual business operators with annual revenue exceeding 01 billion dong, or selling assets that require registration of ownership rights and usage rights, must use electronic invoices with tax authority code or electronic invoices generated from point-of-sale machines connected to the tax authority's data system (Decree 254/2026/NĐ-CP, Article 6, Clause 1, Point d, effective from 01/07/2026; Decree 68/2026/NĐ-CP, Article 8, Clause 5, as amended by Decree 141/2026/NĐ-CP).

Some cases do not require electronic invoices, for example, income from real estate rental, or acting as an agent for lottery, insurance, and multi-level sales where the enterprise has withheld taxes (Decree 254/2026/NĐ-CP, Article 7).

For households with previous year revenue not exceeding 01 billion dong (except for those that have registered to use electronic invoices according to Article 8, Clause 5, Point b of Decree 68/2026/NĐ-CP), if during the tax year they have revenue exceeding 01 billion dong, they must use electronic invoices with tax authority code or electronic invoices generated from point-of-sale machines connected to the tax authority's data system, and register for electronic invoice use within 30 days from the last day of the tax period in which cumulative revenue exceeds 01 billion dong (Decree 68/2026/NĐ-CP, Article 8, Clause 5, Point c, as amended by Decree 141/2026/NĐ-CP). For newly established business households: please consult an accountant.

Business households and individual business operators with annual revenue up to 01 billion dong, if they meet the conditions and have the need, may register to use electronic invoices (Decree 68/2026/NĐ-CP, Article 8, Clause 5, Point b, as amended by Decree 141/2026/NĐ-CP). For activities of selling goods and providing services directly to consumers (retail, excluding automobiles, motorcycles, motor scooters and other motor vehicles; food and beverage; restaurants; hotels and other activities mentioned in the documents), Decree 254/2026/NĐ-CP, Article 6, Clause 1, Point c requires the use of electronic invoices from point-of-sale machines. Please consult an accountant to see if your situation requires the use of electronic invoices.

Important Points When Using Electronic Invoices

Recipients of Electronic Invoices per Transaction

According to Decree 254/2026/NĐ-CP, Article 6, Section 2, Point a (effective from 01/07/2026), the tax authority issues electronic invoices with the tax authority's code each time they are issued as sales invoices for economic organizations, other organizations, business households, and individuals conducting business subject to value added tax under the direct method in the cases mentioned in point a.2 of that section.

The cases in point a.2 include: cessation of business operations but not yet completed the procedure to terminate the tax code validity while having asset and goods liquidation requiring invoices to be issued to buyers (a.2.1); temporary suspension of business operations but requiring invoices to issue to customers to fulfill contracts signed before the date the tax authority notifies temporary business suspension (a.2.2); being subject to tax authority enforcement through invoice suspension measure (a.2.3); enterprises undergoing bankruptcy procedures but still having business activities under court supervision (a.2.4); during the period of clarification or supplementation of documents as prescribed by the Minister of Finance (a.2.5). Please ask your accountant whether your case falls into any of these situations.

Free Electronic Invoice Service

According to Decree 254/2026/NĐ-CP, Article 11, Section 1 (effective from 01/07/2026), small and medium enterprises, cooperatives, cooperative unions, business households, and individuals conducting business in areas with difficult socio-economic conditions, areas with particularly difficult socio-economic conditions falling under the case of using electronic invoices are entitled to free service for 12 months from the date of using electronic invoices. Such areas shall be implemented according to the List of investment incentive areas as prescribed by investment legislation.

Economic organizations, business households, and individuals conducting business not falling under the above case, when using electronic invoices through an electronic invoice service provider, shall pay service fees according to the contract signed between the parties (Decree 254/2026/NĐ-CP, Article 11, Section 3).

Cases of Stopping or Suspending Use of Electronic Invoices

Circular 91/2026/TT-BTC, Article 8, Section 1 (effective from 01/07/2026) specifies the cases where economic organizations, other organizations, business households, and individuals conducting business stop or temporarily suspend using electronic invoices with the tax authority's code; stop or temporarily suspend using electronic invoices without the tax authority's code; stop or temporarily suspend using electronic invoices initiated from a cash register. The sections below mention some of the cases in that section.

Points a, b, and c specify the cases: termination of tax code validity (point a); falling under the case where the tax authority verifies and notifies that there is no activity at the registered address (point b); temporary suspension of business operations (point c).

Points đ and e specify the cases: having the act of using electronic invoices to sell smuggled goods, prohibited goods, counterfeit goods, goods that infringe intellectual property rights, discovered by competent authorities and notified to the tax authority (point đ); having the act of issuing electronic invoices for the purpose of selling non-existent goods, providing services to defraud money from organizations and individuals discovered by competent authorities, investigated and notified to the tax authority; the police agency, procuracy, and court having documents requesting the tax authority to stop using electronic invoices of the aforementioned organization and individual (point e).

Points d, g, and i specify the following cases: there is a decision from the tax authority regarding the cessation of electronic invoice use to enforce tax debt collection through the measure of ceasing electronic invoice use (point d); the business registration authority, competent state authority requires businesses to temporarily suspend operations in regulated industries or trades when discovering that the business does not have sufficient conditions to operate in accordance with legal regulations, or in the case where a competent authority detects and notifies the tax authority that the taxpayer has committed violations of tax and invoice law (point g); business households and individual traders who were issued a tax identification number before 01/07/2025 but whose tax registration information does not match or is incomplete with personal information stored in the national population database, and have been required by the tax authority to supplement information within 10 working days but have not done so, the tax authority will temporarily suspend electronic invoice use (point i). Article 8, Section 1 of Circular 91/2026/TT-BTC also mentions other cases; if you are unsure, please consult an accountant.

Which Tax Authority Issues Invoices Each Time?

Circular 91/2026/TT-BTC, Article 15, Section 2 (effective from 01/07/2026) specifies which tax authority issues electronic invoices with the tax authority code each time they are generated.

For business households and individual traders with a fixed place of business, including e-commerce operations with multiple business locations (stores) operating in the same province, city, or different provinces and cities, the dossier requesting the issuance of electronic invoices with the tax authority code each time they are generated shall be submitted to the tax authority directly managing the headquarters of the business household or individual trader, which is identified as the address recorded on the business registration certificate for business households or on the tax registration form for individual traders (point b.1).

For business households and individual traders without a fixed place of business, the dossier shall be submitted to the tax authority managing the area where the business household or individual trader resides: current residence; temporary residence or permanent residence (point b.2).

Fixed Tax Quota from 2026

From 01/01/2026, business households and individual traders shall not apply the fixed tax quota method and shall pay taxes according to tax management laws (Resolution 198/2025/QH15, Article 10, Section 6). Whether a business household must use electronic invoices depends on the cases mentioned in the section "Which Business Households Must Use Electronic Invoices" above. Please consult an accountant about what your case needs to do.

To support small business households in adapting to new regulations without having to hire accountants or perform complex manual work, many comprehensive digital transformation solutions have been developed, helping to integrate sales management, tax declaration, tax payment, electronic invoice issuance, and accounting record management features on a single unified platform.

Conclusion

Business households and individual traders with annual revenue exceeding 01 billion dong must use electronic invoices with the tax authority code or electronic invoices initiated from a cash register with data connection to the tax authority (Decree 254/2026/NĐ-CP, Article 6, Section 1, Point d, effective from 01/07/2026), except for the cases mentioned in Article 7 of this Decree; please consult an accountant to see whether your case must use electronic invoices. Having a clear understanding of electronic invoice regulations, from concepts and applicable subjects to cases for invoice issuance and situations requiring cessation of use, is essential for all business household owners to conduct their operations transparently and in compliance with the law.

Notably, when business households no longer pay fixed tax contributions, equipping themselves with appropriate tools to manage accounting records, file tax returns, and issue electronic invoices has become more essential than ever. GTG CRM provides automatic integrated electronic invoice issuance functionality, helping business households easily issue legal invoices, send data to tax authorities in compliance with regulations, while also supporting verification and error detection from input invoices. As a result, business owners not only save time but also ensure accuracy in accounting work and full compliance with tax authority requirements.