Household businesses are relieved of the burden of retroactive tax and inventory adjustments.

Washington [US], March 7: Tax collection and inventory management... The two biggest concerns of household businesses when switching to tax declaration based on actual revenue have officially been answered.
Record inventory
Specifically, according to Government Decree No. 68/2026 (ND 68) on tax policy and tax management for household businesses and individual businesses, issued on March 5th: For household businesses and individual businesses with revenue of 3 billion VND or more in 2025, or from 2026 onwards choosing to pay personal income tax (PIT) using the method of taxable income multiplied by the tax rate, they shall determine and record the value of inventory, machinery, and equipment currently serving production and business activities as of December 31, 2025, to serve as the basis for determining deductible expenses when calculating PIT for the tax period of 2026.
Household businesses must prepare an inventory list of machinery and equipment according to the form prescribed by the Minister of Finance, keep it at the household business, and send a copy electronically to the directly managing tax authority along with the tax return for the first quarter of 2026 for quarterly tax filings, or no later than April 20th for monthly tax filings. The tax authority receives the information for tax management purposes. The receipt of the inventory list by the tax authority does not have legal value in confirming or legitimizing the origin of the goods. Household businesses are responsible before the law for the truthfulness, accuracy, and completeness of the information in the inventory list. In case of legal violations, they will be handled according to the relevant laws.
The specific regulations regarding inventory mentioned above have resolved the concerns of millions of household businesses over the past few months. Ms. Nguyen Thi Hoa, a household business owner in Phu Tho Hoa Ward (Ho Chi Minh City), specializing in clothing, shared that her biggest worry for the past two months was how to declare inventory because many products purchased previously lacked sufficient invoices and documentation. Even some vendors had ceased operations. Now, with the specific guidelines, she finds it easier and only needs to declare inventory according to the actual situation.
Do not use 2026 revenue to collect back taxes from previous years.
In addition to providing guidance on inventory management, Decree 68 also clarifies that for household businesses and individual business owners who paid taxes using the lump-sum method from 2025 onwards, when they switch to tax declaration from January 1, 2026, the tax authorities will not use the declared revenue for 2026 to reassess tax obligations for previous years, and will not impose administrative penalties for tax obligations already paid under the lump-sum method, except in cases where the household or individual business is found to have concealed revenue leading to a shortfall in tax payable.
This also brought relief to household businesses and individual entrepreneurs, as they will not be subject to retroactive tax collection if their revenue declarations from 2026 onwards show significantly higher figures than those previously declared under the lump-sum tax system. Legally, the tax authorities have the right to collect retroactive tax if they discover a large discrepancy between the actual revenue and the previously paid lump-sum tax. Furthermore, household businesses could face administrative penalties as a result.
Tax expert and lawyer Tran Xoa, Director of Minh Dang Quang Law Firm, noted that at many previous seminars related to tax policies for household businesses, there were repeated questions about how to record inventory. The reason is that household businesses paying flat-rate taxes often purchase a large quantity of goods for business purposes but lack sufficient invoices and supporting documents. In addition, household businesses are worried about the possibility of having their declared revenue for 2026 used to collect back taxes from previous years, or in other words, the fear of "retroactive" application (in many cases, those who previously paid flat-rate taxes had their declared revenue lower than the actual revenue from 2026 onwards - PV ).
At numerous meetings, representatives from the tax authorities have explained and provided guidance on inventory recording. In particular, the head of the Tax Department has repeatedly affirmed that they will not use the revenue declared in 2026 to recover taxes from previous years. However, these are merely statements and lack strong legal standing. Therefore, households and individuals remain uneasy. Now, Decree 68 clarifies how to handle inventory and affirms that the tax authorities will not use the revenue declared in 2026 to reassess tax obligations from previous years. "In addition to providing guidance on tax regulations for household businesses and individual entrepreneurs according to the law, Decree 68 is a legal document of the Government that has resolved confusion regarding inventory and the collection of taxes from previous years. This helps household businesses and individuals feel secure in implementing the new tax policy. At the same time, Decree 68 also helps tax officials and agencies easily and confidently implement tax regulations for household businesses and individual entrepreneurs," lawyer Tran Xoa further shared.
Source: Thanh Nien Newspaper