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TAX POLICY FOR HOUSEHOLD BUSINESSES UNDER OFFICIAL DISPATCH NO. 3914/CT-CS AND OFFICIAL DISPATCH NO. 3955/CT-CS ISSUED BY THE TAX DEPARTMENT

The Tax Department issued Official Dispatch No. 3914/CT-CS dated September 18, 2025 and Official Dispatch No. 3955/CT-CS dated September 19, 2025 to clarify certain issues regarding tax policies for household businesses as follows:

1. Adjustment of revenue and presumptive tax

  • In cases where a presumptive household business changes its business scale (including business area, labor usage, revenue), it must declare adjustments and submit a revised tax declaration using Form No. 01/CNKD under Circular No. 40/2021/TT-BTC.
  • Based on the household’s tax declaration, database, and results of verification, inspection, and audit, the tax authority will consider adjusting the presumptive tax level depending on each specific case:
    • If the tax authority determines that the presumptive revenue changes by 50% or more compared to the previously declared amount, it will issue a Notice of Adjustment of Presumptive Tax (Form No. 01/TB-CNKD issued with Decree No. 126/2020/NĐ-CP dated October 19, 2020), effective from the time of change within the tax year.
    • If the tax authority determines that the household business does not meet the conditions for tax adjustment, it will issue a Notice of No Adjustment of Presumptive Tax using Form No. 01/TBKĐC-CNKD issued under the current Circular.

2. There are no regulations on tax exemption or reduction for household or individual businesses when changing the tax calculation method

3. Regarding support measures for household businesses:

The State allocates funding to provide free digital platforms and shared accounting software for small, micro, household, and individual businesses under Clause 3, Article 12 of Resolution No. 198/2025/QH15 dated May 17, 2025, guided by Article 9 of Draft No. 4 of the Decree guiding Clause 3, Article 12 of Resolution 198.

4. Regarding input invoices for inventory goods arising before June 1, 2025

  • Household businesses paying tax by declaration method must implement accounting, invoicing, and documentation procedures.
  • Household businesses paying tax by presumptive method using single invoices or operating in border markets, checkpoint markets, or markets within border-gate economic zones in Vietnam must store invoices, documents, contracts, and records proving the legality of goods and services when requesting issuance or retail invoices per transaction or when required by competent state authorities.