Tax Policy Changes
Understanding the new tax regulations that affect your business.
Legal Basis
Decree 70/2025/ND-CP (amending Decree 123/2020)
Effective Date: January 1, 2026
Who is Affected?
1. Flat-tax Household Businesses
Previously operating on estimated taxes, now required to declare based on actual revenue.
2. Individuals Issuing Invoices
Must use electronic invoices connected directly to Tax Authorities.
3. Micro Households/Businesses
Retail or service providers must record revenue by transaction, not estimates.
4. POS/Software Users
Businesses using POS terminals, cash registers, or sales software must connect revenue data in real-time with Tax Authorities.
5. COD/Collection Services
Must declare revenue per collection transaction.
Business Requirements
To comply with the new regulations, businesses must:
| Requirement | Description |
|---|---|
| Sales Software | Use software that connects with Tax Authorities for automatic data transmission |
| Real-time Invoicing | Issue electronic invoices at the time of sale |
| Tax ID per Transaction | Attach MST (tax identification number) to each transaction |
| Data Retention | Store data for minimum 10 years |
| Price Compliance | Display prices matching invoices |
| Documentation | Manage import/export documents for regulated industries |
| Audit Readiness | Allow automatic revenue reconciliation by Tax Authorities |
Revenue Thresholds
Household Business Tax Obligations
| Annual Revenue | Tax Obligation | Declaration | Requirements |
|---|---|---|---|
| Under 200M VND* | VAT exempt, PIT exempt | Periodic (2x/year) | Under 1B: Not mandatory (encouraged) |
| 200M - 3B VND | Direct tax = % of revenue (varies by industry) | Quarterly (4x/year) | Over 1B & retail: Must issue invoices from connected cash registers |
| Over 3B VND | VAT = Output - Input, PIT = 17% profit | Monthly (>50B) or Quarterly (<50B) | Full compliance required |
*Currently proposed to increase from 200M to 500M to 1B VND (not yet official)
Affected Industries
Businesses selling goods or providing services directly to consumers:
- Retail (except vehicle sales)
- F&B (Food & Beverage)
- Entertainment & Recreation
- Hospitality (Hotels, Accommodations)
- Transportation
- Services
How PMBH Helps
PMBH is designed to meet all compliance requirements:
- Real-time Tax Connection - Automatic data transmission to Tax Authorities
- Electronic Invoicing - Issue compliant e-invoices instantly
- Transaction Tracking - Every sale recorded with proper tax documentation
- 10-Year Storage - Secure, compliant data retention
- Audit Support - Ready for automatic reconciliation
Timeline
Related Documentation
- System Overview - How PMBH works
- Target Customers - Find your segment
- Tax & Invoice Module - Technical implementation