What household businesses need to know: new e-invoice rules from 2026

From 1 July 2026, Decree No. 254/2026/ND-CP takes effect. It replaces Decree No. 123/2020/ND-CP on invoices and electronic documents. The new Decree adds several important rules for household and individual businesses, in particular: when they must use e-invoices, what an invoice must show, and a scheme that encourages consumers to help monitor whether invoices are issued.

This is one of the most notable changes in tax administration policy. Household businesses (hộ kinh doanh) should review their operations now to make sure they comply.

Which household businesses must use e-invoices?

Under Decree No. 254/2026/ND-CP, household and individual businesses with cumulative revenue in the year of more than VND 1 billion must register to use:

• e-invoices with a tax authority code; or
• e-invoices generated from a cash register, as provided by law.

Registration must be made within 30 days from the date revenue exceeds VND 1 billion.

This is a mandatory obligation. It lets the tax authority track revenue in real time and makes business activity more transparent.

New content required on e-invoices from 2026

One notable change is that e-invoices issued by household and individual businesses must clearly show the information used to work out their tax obligations.

Specifically, the invoice must show:

• the percentage rate used to calculate value-added tax (VAT);
• the tax rate or percentage rate used to calculate personal income tax (PIT), as set by law for each business activity.

With this information, the tax authority can automatically match invoice data against each taxpayer’s tax obligations. It also reduces errors in tax declarations and tax administration.

Consumers may be rewarded for reporting businesses that do not issue invoices

Another notable change in Decree No. 254/2026/ND-CP is a scheme that encourages the public to help monitor the use of e-invoices.

If a consumer finds and reports a failure to issue or deliver an e-invoice as required, the tax authority may consider giving a reward.

The maximum reward is:

• up to 10% of the administrative fines collected in the case;
• no more than VND 10 million per case.

The scheme is expected to raise awareness of the invoice rules and make tax administration more effective in sectors with many direct transactions with consumers.

The sectors most affected

The new rules directly affect sectors with frequent retail transactions, including:

• restaurants, eateries and cafés;
• retail shops;
• spas, beauty salons and hair salons;
• private clinics and private healthcare providers;
• repair services, transport and other services provided directly to consumers.

In these sectors, issuing and delivering a complete e-invoice after every transaction becomes an important requirement to avoid tax risk and administrative penalties.

Cases where e-invoices are not mandatory

As well as widening the scope of who must use e-invoices, Decree No. 254/2026/ND-CP sets out 8 cases where e-invoices are not mandatory.

Notable cases include:

• leasing real estate, in the cases where the law does not require e-invoices;
• providing digital content products and services to organisations and individuals abroad, such as digital music, video games, online advertising and other digital content products and services as provided by law.

Business owners should establish clearly whether their activities fall within an exempt case, so they apply the rules correctly and avoid violations caused by misunderstanding them.

How should household businesses prepare before 1 July 2026?

To meet the new rules, household and individual businesses should:

• track cumulative revenue during the year to know when the obligation to use e-invoices starts;
• prepare suitable technical infrastructure or e-invoice software;
• check the connection with the tax authority if using e-invoices with a tax authority code or e-invoices generated from a cash register;
• train staff on how to issue invoices and deliver them to customers;
• review compliance regularly to limit the risk of penalties.

Preparing early means household businesses will not be caught off guard when the new rules apply.

Conclusion

Decree No. 254/2026/ND-CP adds many new e-invoice rules to make tax administration more transparent and effective. For household and individual businesses, knowing exactly when e-invoices become mandatory, issuing complete invoices and following the rules will help limit legal risk and avoid penalties.