In the context of the shift in tax administration methods, mastering the principles of determining taxable revenue is not only an obligation but also key to ensuring the sustainable operation of household businesses and avoiding unnecessary legal risks.
In line with the policy of managing taxes using the declaration method starting in 2026, Expertis tax experts will share the principles for determining tax-declared revenue in this article.
I. Principles for determining revenue
Taxable revenue is not based on subjective estimates, but is determined on the basis of tax management data that the tax authorities possess and that is legally recognized, including:
1️⃣ Amount of lump-sum tax paid in 2025
2️⃣ Revenue data generated on e-commerce platforms and intermediary platforms in 2025
Special Note: For other revenue streams (cash, bank transfers, POS payments, QR codes, e-wallets, etc.): If there is a legitimate basis, the tax authorities will consider including them in the declared revenue as per regulations.
II. Methods for determining declared revenue
The taxable revenue for household businesses is determined by the following formula:
Declared revenue = (Amount of lump-sum tax paid during the year / Tax rate by industry) + Revenue generated from e-commerce platform (before discounts) + Other legally justified revenue
Reference tax rates for revenue conversion:
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(I.e. Food and beverage services: 4,5 %
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(I.e. Hotel, spa, and accommodation services: 7%
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???? ️ Retail trade activities: 1,5 %
III. Illustrative Examples
Based on the above principles, we present realistic scenarios to help household businesses easily visualize them:
1️⃣ Coffee shop business ☕
Fixed tax for 2025: 12 million VND
- Revenue converted from lump-sum tax: approximately 266 million VND/year
- Revenue from e-commerce platform: 240 million VND/year
⇒ Minimum declared revenue: Approximately 506 million VND/year → Subject to Value Added Tax (VAT) and Personal Income Tax (PIT).
2️⃣ Household businesses operating restaurants and bars 🍻
Fixed tax for 2025: 60 million VND
- Revenue (converted): approximately 1,33 billion VND/year
⇒ Subject to mandatory use of electronic invoices and strict invoice management.
3️⃣ General restaurant business 🍽️
Fixed tax for 2025: 120 million VND
- Revenue (converted): approximately 2,67 billion VND/year
In cases where additional revenue is generated from parties and reservations ⇒ Potentially exceeding 3 billion VND/year, tax must be determined based on profit.
IV. Key revenue milestones to consider when applying management methods.
Below are the key revenue thresholds that business owners need to pay special attention to in order to apply the right management methods:
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Revenue of 500 million VND/year or more: Subject to VAT and personal income tax 💰
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Revenue of 1 billion VND/year or more: Subject to the requirement to use electronic invoices generated from cash registers according to tax authority regulations 🧾🖥️
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Revenue of 3 billion VND/year or more: Determining personal income tax based on a percentage of profit → Requires full management of revenue, expenses, and profit 🧮
Accurately determining revenue is the responsibility of the business household, and it also brings practical benefits: fulfilling tax obligations correctly and completely as required by law; avoiding the risk of tax assessment, tax arrears, and other administrative penalties.
Take the initiative to review your 2025 revenue today to ensure the most accurate and secure tax filing plan for 2026!