Tax for homestay household businesses in Vietnam from 2026

HostBooking · Updated Oct 24, 2026 · 7 min read

From 1 January 2026, household businesses in Vietnam no longer pay a flat (lump-sum) tax. A homestay with yearly revenue of 500 million VND or less pays no VAT and no personal income tax; above that it works out, files and pays its own tax every quarter. This is a summary for reference, not tax advice.

What changed in 2026

• The flat tax and business licence fee are abolished for household businesses from 1 January 2026 (Resolution 198/2025/QH15).
• The threshold is 500 million VND a year: revenue at or below it is not subject to VAT or personal income tax.
• Self-assessment: above the threshold, file quarterly from the quarter in which the year’s revenue passes 500 million, by the last day of the following quarter’s first month.
• Main texts: Decree 68/2026/NĐ-CP on tax for household and individual businesses (in force from 5 March 2026), the Personal Income Tax Law 109/2025/QH15, and Circular 152/2025/TT-BTC on bookkeeping.

What a homestay above 500 million pays

Accommodation is in the services group: 5% VAT and 2% personal income tax on revenue. Under this method, income tax applies to revenue above 500 million. For VAT, current guidance is not consistent on whether it applies to all revenue or only the part above the threshold, so ask your tax office before you pay.

Example, with income tax on the part above the threshold: a homestay taking 800 million VND in a year pays (800 − 500) × 2% = 6 million VND income tax. VAT is 5% × 800 million = 40 million if charged on all revenue, or 5% × 300 million = 15 million if only on the part above.

Between 500 million and 3 billion VND a year you may instead pay income tax on profit (revenue minus costs) at 15%. That pays off when costs are high, but every cost needs an invoice or receipt, and the method must be kept for two years running.

The books to keep

• A revenue book (form S1a) if you pay on revenue; a revenue and expense book (form S2a) if you pay on profit, under Circular 152/2025/TT-BTC.
• Keep business costs apart from household spending, each with an invoice or receipt; pay 5 million VND or more by bank, not cash.
• E-invoices are required from 1 billion VND a year of VAT revenue, and optional between 500 million and 1 billion.

On HostBooking

Every booking, desk sale and expense you record feeds books and tax: a ledger, monthly reports and the S1a/S2a tax book in Excel, pre-set with the 500 million threshold, 5% VAT and 2% income tax. You can change these to match what your tax office tells you. Add expenses each month to see profit and loss.