Tax and Finance Newsletter – January 2026

ACAC – Tax and Finance Newsletter, January 2026

VAT Exemption Threshold for Business Households Raised to VND 500 Million/Year, Together with the Roadmap for Converting Lump-Sum (Khoán) Households to the Declaration Method from 2026

At Anh Consulting and Auditing Co., Ltd. (ACAC), we place strong emphasis on keeping pace with regulatory developments and providing accurate professional knowledge to help businesses make effective financial decisions, remain compliant, and adapt flexibly in a changing policy environment.

January 2026 opened with a series of documents guiding the implementation of new tax laws effective from 2026: the amended VAT Law, the 2025 Tax Administration Law, and their implementing decrees. The most notable development is the doubling of the VAT exemption revenue threshold for business households and business individuals, together with the mandatory roadmap for converting from the lump-sum (khoán) tax method to the declaration method. ACAC’s January 2026 newsletter summarizes the most notable updates to help enterprises and business households stay informed and adjust accordingly in a timely manner.

Notable Tax Policy Developments

VAT exemption threshold for business households raised 2.5-fold

On 11 December 2025, the National Assembly adopted the Law Amending the 2025 Law on Value-Added Tax (Law No. 149/2025/QH15), raising the VAT exemption revenue threshold for households and individuals engaged in production or business from VND 200 million to VND 500 million/year, applicable from 1 January 2026. For most business households, the first declaration period is Q1 2026, to be filed no later than 30 April 2026; however, business households should prepare their books and invoices from the start of the year to avoid being caught unprepared.

Mandatory conversion from the lump-sum (khoán) tax method to the declaration method

Under Official Letter No. 307/CT-PC, from 1 January 2026 all business households and business individuals will convert from the lump-sum (khoán) tax method to the declaration method. For a business household that paid lump-sum tax in 2025 or earlier, the tax authority will not retroactively assess tax liability based on the revenue declared for 2026 — except where fraud or concealment of revenue is discovered, in which case the business household may be subject to an administrative penalty or criminal liability for tax evasion if the violation is serious. This is an important policy that allows business households to convert to the new model with greater confidence.

Simplified conditions for VAT refunds

Decree No. 359/2025/ND-CP (31 December 2025) abolishes one of the conditions for a VAT refund from 1 January 2026: a business establishment applying for a refund is no longer required to prove that the seller has declared and paid VAT on the invoices issued — significantly shortening the time and reducing the procedural burden of obtaining a refund for enterprises.

Expanded eligibility for quarterly tax declaration

Decree No. 373/2025/ND-CP, effective from 14 February 2026, allows a taxpayer otherwise required to declare monthly, but whose revenue for the immediately preceding year was VND 50 billion or less, to elect to declare VAT and PIT on a quarterly basis. An enterprise wishing to switch from monthly to quarterly declaration must send a written request to the tax authority no later than 31 January of the year in which the change is to take effect.

Non-cash payment documentation for salary payments

Under Official Letter No. 218/CST-TN, from 15 December 2025, a payment of wages or remuneration of VND 5 million or more per payment must be supported by non-cash payment documentation in order to be included as a deductible expense when determining CIT taxable income. Enterprises should review their salary payment processes, particularly for bonuses and allowances paid in cash.

Classification of taxpayers from 1 July 2026

The 2025 Tax Administration Law (Law No. 108/2025/QH15, adopted on 10 December 2025) provides that the tax authority will classify taxpayers based on criteria such as business sector, scale of operations, revenue, and level of tax compliance, as the basis for applying management and supervision measures appropriate to each group, effective from 1 July 2026.

Transparency – Updates – Partnership

Through its monthly newsletter, ACAC aims not only to deliver authoritative information but also to help enterprises and business households understand the practical impact of policy changes, enabling them to proactively adjust their financial strategies and risk management.

We believe that transparency, professional rigor, and timely updates form the foundation for the sustainable growth of Vietnam’s business community in this era of global integration.

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