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E-Invoices for Household Businesses 2026: Who Must Comply

8 min readFLAT LAW FIRM
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E-Invoices for Household Businesses from 2026: Who Must Comply, Who Is Exempt — and What Supply-Chain Businesses Must Do

2026 marks a turning point for household businesses in Vietnam: lump-sum tax ends on 01/01/2026, and larger households must use e-invoices generated from cash registers. In practice, many household owners — and the enterprises buying from them — misunderstand the scope of the mandate, leading either to wasteful over-compliance or to under-compliance and tax risk.

This article clarifies: who is in, who is out; what the new legal framework contains; and what businesses — especially FDI enterprises with household businesses in their supply chains — must adjust.

Contents

1. The new picture from 01/01/2026: lump-sum tax abolished

Under Resolution 198/2025/QH15, the lump-sum (presumptive) tax method for household businesses is abolished from 01/01/2026. This is a foundational change: instead of paying a fixed quarterly/annual amount set by the tax authority, household businesses move to declaration-based or per-transaction taxation.

The direct consequence is a sharp increase in bookkeeping, invoicing and record-keeping duties. Households can no longer file nominally but must reflect actual revenue — and e-invoices are the tool tax authorities use to cross-check.

In parallel, several articles of the Law on Tax Administration 108/2025/QH15 — including Articles 13 and 26 — take early effect from 01/01/2026, creating a synchronised administration framework for household businesses in the new phase.

2. Who must use cash-register e-invoices?

Under point (d), clause 1, Article 6 of Decree 254/2026/ND-CP (effective 1/7/2026, replacing Decree 70/2025/ND-CP), household and individual businesses with annual revenue above VND 1 billion must use e-invoices — either tax-authority-coded e-invoices or cash-register e-invoices connected to the tax authority. The revenue threshold alone is sufficient; no direct-to-consumer condition is required. A household with VND 2 billion annual revenue selling only wholesale to enterprises is therefore still in the mandatory category (free to choose either invoice form). Separately, businesses selling goods or services directly to consumers in the sectors listed at point (c), clause 1, Article 6 (shopping centres, supermarkets, retail, food and beverage, restaurants, hotels, passenger transport, arts, entertainment, cinemas and other personal services) use cash-register e-invoices.

Both conditions must be met together. A household with VND 2 billion annual revenue selling only wholesale to enterprises (not directly to end consumers) is not covered. Conversely, a household selling retail directly to consumers but below VND 1 billion annual revenue is not automatically covered either.

The key emphasis: do not read this as "every household business must use a cash register" — a widespread misunderstanding causing many small households to panic and spend on unnecessary equipment.

3. Who is NOT yet required — and what their duties are

Household businesses below the VND 1 billion/year threshold, or not selling directly to consumers, are not in the mandatory cash-register e-invoice category. But "not required to use a cash register" does not mean "no invoicing duties".

These households must still comply with invoice and documentation duties under their applicable tax method and the detailed rules in Decree 68/2026/ND-CP on revenue thresholds and tax administration for household businesses. With lump-sum tax gone, every household business must record revenue truthfully and keep complete records — tax authorities have full post-audit tools. For households with multiple business locations or sales through e-commerce platforms, determining taxable revenue is even more complex, as turnover must be aggregated from multiple sources; this group should obtain tailored advice from the start of the year.

Four documents form the new framework for household businesses from 2026:

  • Resolution 198/2025/QH15: abolishes lump-sum tax from 01/01/2026 — a change of tax computation method.
  • Law on Tax Administration 108/2025/QH15: Articles 13, 26 (and others) effective early from 01/01/2026 — the new administration corridor.
  • Decree 254/2026/ND-CP (effective 1/7/2026, replacing Decree 123/2020/ND-CP and Decree 70/2025/ND-CP): details on e-invoices — point (d), clause 1, Article 6: households with annual revenue above VND 1 billion must use e-invoices (coded or cash-register); point (c), clause 1, Article 6: direct-to-consumer sectors use cash-register e-invoices.
  • Decree 68/2026/ND-CP: revenue thresholds and tax administration methods for household businesses in the new context.

These four must be read together; reading only one invites misapplication — for example, reading Decree 254/2026 alone while ignoring Decree 68/2026 may misidentify the duties of sub-threshold households. Enterprises with internal accounting systems should also update the list of valid document types in their payment approval process, to avoid a situation where the purchasing team accepts invoices of the wrong category and the problem is only discovered at tax finalisation.

5. Supply-chain impact: the input-invoice problem

For enterprises — especially FDI enterprises with networks of household-business suppliers, agents and processors — this change directly affects the validity of input costs.

The tax principle is unchanged: costs are deductible only with lawful invoices and documents. As household businesses move to declaration and e-invoicing, buying enterprises must demand and verify input invoices more rigorously. Typical risks:

  • A household in the mandatory category fails to issue e-invoices → the buying enterprise lacks valid documentation; costs disallowed at finalisation.
  • A household issues the wrong invoice type (e.g., paper invoices while in the mandatory e-invoice category) → the invoice may be deemed invalid.
  • A sub-threshold household keeps inadequate records → when tax authorities trace transaction chains, the buying enterprise gets caught in verification.

6. Checklist for enterprises buying from household businesses

  1. List all household-business suppliers; classify by revenue threshold (above/below VND 1 billion/year) and sales model.
  2. Insert e-invoicing clauses into contracts: duty to issue the correct e-invoice type on time; remedies if the household fails to invoice (payment holdback, compensation for resulting tax costs).
  3. Verify input invoices before booking: correct invoice type, correct seller information, validity check on the tax authority system.
  4. Keep the document chain: contracts, handover records, non-cash payment proof (for large-value transactions) alongside invoices.
  5. Train procurement and accounting teams on distinguishing invoice types and the new thresholds.
  6. Review quarterly: a household's revenue band can change year to year; a sub-threshold household this year may cross the threshold next year and change mandatory category.

7. Frequently asked questions

Must every household business use cash-register e-invoices from 2026? No. Only household businesses with annual revenue of VND 1 billion or more that sell goods or provide services directly to consumers must use e-invoices under point (d), clause 1, Article 6 of Decree 254/2026/ND-CP (effective 1/7/2026, replacing Decree 70/2025/ND-CP). Lower-revenue households are not automatically covered.

What does the abolition of lump-sum tax from 01/01/2026 mean? Under Resolution 198/2025/QH15, the lump-sum (presumptive) tax method for household businesses ends on 01/01/2026. Households switch to declaration-based or per-transaction taxation, with significantly stricter bookkeeping, invoicing and record-keeping duties.

Must a household with VND 500 million–1 billion annual revenue use a cash register? Not automatically. The mandatory e-invoice threshold under point (d), clause 1, Article 6 of Decree 254/2026/ND-CP is annual revenue above VND 1 billion (using tax-authority-coded e-invoices or cash-register e-invoices). Sub-threshold households must still meet invoicing and documentation duties under their applicable tax method and Decree 68/2026/ND-CP.

If a household business cannot issue an invoice, how does the buying enterprise treat the cost? Costs are deductible only with lawful invoices and documents. When buying from household businesses, require e-invoices (if the household is in the mandatory category) or documents compliant with tax law; without valid documentation, costs risk disallowance at tax finalisation.

What does Decree 68/2026/ND-CP add? Decree 68/2026/ND-CP further details revenue thresholds and tax administration methods for household businesses after lump-sum tax abolition. Businesses and households should check the verbatim decree alongside Decree 254/2026/ND-CP to determine the correct obligations for each case.

What should an FDI enterprise with household businesses in its supply chain do? Three actions: (1) review all household-business suppliers, classified by revenue threshold; (2) insert e-invoicing obligations into purchase contracts; (3) build a process to verify input invoice validity before booking costs.

Contact FLAT Law Firm to review your supply chain and e-invoice obligations: hotline 0988424851.

References

  1. Resolution No. 198/2025/QH15 (lump-sum tax abolished from 01/01/2026).
  2. Law on Tax Administration No. 108/2025/QH15 (several articles effective early from 01/01/2026).
  3. Decree 254/2026/ND-CP on e-invoices and e-documents (effective 1/7/2026; replacing Decree 123/2020/ND-CP and Decree 70/2025/ND-CP).
  4. Decree No. 68/2026/ND-CP on tax administration for household businesses.