ARE HOUSEHOLD BUSINESSES WITH ANNUAL REVENUE UNDER VND 1 BILLION REQUIRED TO ISSUE INVOICES FOR EVERY TRANSACTION? DO HOUSEHOLD BUSINESSES WITH REVENUE UNDER VND 1 BILLION NEED TO ISSUE INVOICES?

Many household business owners believe that invoicing requirements only become relevant once annual revenue reaches VND 1 billion or more. However, the current regulations are not entirely so. Whether an invoice must be issued depends on various factors, and misunderstanding these rules may lead to tax risks and administrative penalties.

This article will help you understand whether household businesses with annual revenue under VND 1 billion are required to issue invoices, when invoices must be issued, and other important considerations. Let’s explore this topic with Pham Consult.I. Are Household Businesses with Annual Revenue Under VND 1 Billion Required to Issue Invoices for Every Transaction?

Under Decree No. 68/2026/ND-CP, household businesses with annual revenue under VND 1 billion are not required to use e-invoices with tax authority authentication codes or e-invoices generated from cash registers connected to the tax authority’s data system.

Specifically, Clause 5 Article 8 of Decree No. 68/2026/ND-CP, as amended by Clause 2 Article 1 of Decree No. 141/2026/ND-CP, provides as follows:

Principles of Tax Declaration, Tax Calculation and Invoice Usage

…

5. Use of Electronic Invoices

…

(b) Household businesses and individual businesses with annual revenue of VND 1 billion or less that meet the required conditions and wish to use electronic invoices may register to use either authenticated e-invoices or e-invoices generated from cash registers connected to the tax authority’s data system.

Accordingly, household businesses with annual revenue of VND 1 billion or less are not subject to the mandatory use of authenticated e-invoices or e-invoices generated from tax authority-connected cash registers.

However, if a household business satisfies the applicable conditions and wishes to use e-invoices, it may voluntarily register for such use in accordance with the regulations.

For household businesses that have registered to use e-invoices, invoice issuance must comply with Clause 1 Article 4 of Decree No. 123/2020/ND-CP, as amended by Point a Clause 3 Article 1 of Decree No. 70/2025/ND-CP. Accordingly, when selling goods or providing services, the seller must issue an invoice and provide it to the buyer as prescribed by law.

Therefore, annual revenue of less than VND 1 billion is not, by itself, a basis for concluding that a household business is exempt from issuing invoices in all circumstances. Whether invoices must be issued depends on whether the household business has registered to use e-invoices and the specific regulations applicable to its circumstances

II. What Are the Penalties for Household Businesses That Fail to Issue Invoices?

Pursuant to Clause 4 Article 7 of Decree No. 125/2020/ND-CP, the monetary penalties prescribed in Articles 10, 11, 12, 13, 14, 15, Clauses 1 and 2 Article 19, and Chapter III of Decree No. 125/2020/ND-CP apply to organizations. The penalty imposed on individuals is equal to one-half of the penalty imposed on organizations committing the same administrative violation.

For taxpayers operating as household businesses, penalties are applied at the level applicable to individuals.

Under Clause 3 Article 24 of Decree No. 125/2020/ND-CP, as amended by Point b Clause 14 Article 1 of Decree No. 310/2025/ND-CP, the penalties for failing to issue invoices are as follows:

1. Warning for failure to issue invoices for promotional goods and services, samples, gifts, donations, exchanges, benefits provided in lieu of employee wages, internal consumption (except internal transfers serving production activities), lending, borrowing, or returning goods involving 01 invoice.
2. Fine from VND 500,000 to VND 1,000,000 for:
   • Failure to issue invoices for the above-mentioned transactions involving from 02 to fewer than 10 invoices; or
   • Failure to issue an invoice for the sale of goods or provision of services involving 01 invoice.
3. Fine from VND 1,000,000 to VND 5,000,000 for:
   • Failure to issue invoices for the above-mentioned transactions involving from 10 to fewer than 50 invoices; or
   • Failure to issue invoices for the sale of goods or provision of services involving from 02 to fewer than 10 invoices.
4. Fine from VND 5,000,000 to VND 15,000,000 for:
   • Failure to issue invoices for the above-mentioned transactions involving from 50 to fewer than 100 invoices; or
   • Failure to issue invoices for the sale of goods or provision of services involving from 10 to fewer than 20 invoices.
5. Fine from VND 15,000,000 to VND 25,000,000 for:
   • Failure to issue invoices for the above-mentioned transactions involving 100 invoices or more; or
   • Failure to issue invoices for the sale of goods or provision of services involving from 20 to fewer than 50 invoices.
6. Fine from VND 30,000,000 to VND 40,000,000 for failure to issue invoices for the sale of goods or provision of services involving 50 invoices or more.

Accordingly, household businesses with annual revenue under VND 1 billion are not required to register for e-invoice usage. However, this does not mean they are exempt from invoice issuance in all circumstances. If they have registered to use e-invoices or fall under cases where invoices must be issued under applicable regulations, they are still required to issue invoices when selling goods or providing services.

Failure to issue invoices as required may result in penalties of up to VND 40 million, together with mandatory remedial measures as prescribed by law.

Note: The above penalties do not apply to cases exempt from administrative penalties relating to tax and invoices under Article 9 of Decree No. 125/2020/ND-CP.