Changes in tax codes of business households
From July 1, 2025, the personal identification number will be used as the tax code of the business household representative, and also the tax code of the business household according to the provisions of Circular No. 86/2024/TT-BTC of the Ministry of Finance .
Accordingly, there is no longer a regulation on granting tax codes for each business location of a business household; the tax authority has converted the tax codes previously granted to business households and business locations of business households to using personal identification numbers as tax codes. The personal identification number of the business household representative is used as the sole tax code to declare and pay taxes for all tax obligations of individuals and tax obligations arising from the business activities of the business household, as well as the business locations of the business household.
Registering the location of a business household
When a business household registers its establishment with the business registration authority, the business household declares its head office address information as prescribed in Clause 1 and Clause 3, Article 87 of Decree No. 168/2025/ND-CP on business registration. This information is transmitted to the tax authority's system to update the business household's tax registration information.
When a business household establishes other business locations outside the headquarters, it is not required to register with the business registration authority, but the business household must notify the Tax Department of the location of the business location by fully declaring information about the business location in the declaration form No. 01/CNKD or Form No. 01/TTS (for property leasing activities) of the first tax period according to the provisions of Circular No. 40/2021/TT-BTC.
For business locations of business households that have been granted tax codes before July 1, 2025, the tax authority integrates tax codes according to personal identification numbers. When a business household terminates the operation of a business location, the business household shall notify the Tax Department of the place where the business location is located according to Form No. 24.1/DK-TCT issued under Circular No. 86/2024/TT-BTC. The business household is responsible for fulfilling its tax obligations to the Tax Department of the place where the business location ceases operation according to regulations. When a business household terminates its business activities, the business locations of the business household will also cease operation. After submitting the dossier to terminate the operation of the business location according to Form No. 24/DK-TCT and completing the tax obligations according to regulations, the business household shall submit the dossier to terminate the operation to the business registration authority according to regulations in Article 104 of Decree No. 168/2025/ND-CP.
In case of need for restoration, the business household shall restore the tax code according to the provisions of Article 33 and Article 34 of Circular No. 86/2024/TT-BTC. After restoring the tax code, the business household shall declare taxes for the business locations according to the provisions of Circular No. 40/2021/TT-BTC if the business location continues to operate.
Register and use electronic invoices for business households
Pursuant to Decree No. 123/2020/ND-CP of the Government regulating invoices and documents (amended by Decree No. 70/2025/ND-CP dated March 20, 2025), information on registration and use of electronic invoices of business households is determined as follows: Tax code of business household: Is the personal identification number of the business household owner. Name and address of business household: Is the name and head office address information recorded on the business household registration certificate or the address information reviewed and updated by the tax authority according to the 2-level administrative area. Tax authority: Is the Tax authority managing the area where the business household is headquartered. Digital certificate used: Business households are allowed to use the digital certificates previously issued to the business household and business location that are still valid.
Business households self-determine revenue according to electronic invoices to declare, calculate and pay taxes to the Tax Department where the business household conducts production and business activities (where the business location is located or where the real estate for rent is located) according to the provisions of Circular No. 40/2021/TT-BTC.
The Ministry of Finance has just issued Decision No. 3389/QD-BTC approving the Project "Converting the model and method of tax management for business households when abolishing lump-sum tax". This is considered a historic reform step to support business households in fulfilling tax obligations and expanding production and business scale. The lump-sum tax used to have a certain historical significance, formed in the period when business households mainly made a living, produced on a small scale, and sold domestically. The lump-sum mechanism helps people easily fulfill their tax obligations.
However, in the current conditions, when the scale of production and business is increasingly expanding, new business models such as logistics and e-commerce appear, changing the tax management method is a correct and necessary policy to be more transparent, fair and convenient for business people.
Source: https://hanoimoi.vn/dang-ky-dia-diem-kinh-doanh-su-dung-hoa-don-dien-tu-cua-ho-kinh-doanh-nam-bat-ky-de-thuc-hien-dung-quy-dinh-720962.html
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