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Suspending an Individual Household Business: Latest Procedure 2026

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Short answer: A household business may temporarily suspend operations when needed, but must notify the commune-level business registration authority and the tax authority in writing before suspending. During suspension, the household business must still fulfill certain obligations and may not use its tax code for transactions. Notably, from 01/01/2026, tax policy for household businesses has fundamentally changed: the presumptive tax is abolished and business license tax collection and payment are terminated under Resolution 198/2025/QH15. This article provides detailed guidance on procedures and current tax obligations.

Legal basis

  • Decree 168/2025/ND-CP on household business registration (replacing Decree 01/2021/ND-CP, effective from 01/07/2025);
  • Resolution 198/2025/QH15: abolition of the presumptive tax for household businesses; termination of business license tax collection and payment from 01/01/2026;
  • The Tax Administration Law 108/2025/QH15 (effective from 01/07/2026, replacing the Tax Administration Law 38/2019/QH14).

May a household business temporarily suspend operations?

Yes. A household business may temporarily suspend operations when needed (renovating premises, market difficulties, personal reasons of the household head, etc.). The suspension must be officially notified; a household business may not stop operating without notification and then continue using its tax code and invoices for transactions.

Procedure for notifying temporary suspension of a household business

Step 1. Prepare the notification dossier

The suspension notification dossier includes: the temporary suspension notice using the current prescribed form (clearly stating the suspension start and end dates); a copy of the household head’s legal documents; an authorization letter (if the submitter is not the household head).

Step 2. Submit the dossier

The household business submits the dossier to the commune-level business registration authority where it has its head office, and simultaneously notifies its directly managing tax authority. The dossier should be submitted a reasonable time before the suspension begins so the competent authority can record it.

Step 3. Record the suspension status

The business registration authority updates the household business’s “temporarily suspended” status on the system. When the notified suspension period expires, the household business may resume operations; if it wishes to continue suspending, it must notify again.

Tax obligations of a household business during suspension

1. New tax policy from 01/01/2026 household businesses should know

Under Resolution 198/2025/QH15, from 01/01/2026: the presumptive tax for household businesses is abolished and business license tax collection and payment are terminated. Household businesses switch to paying tax under the declaration method under tax administration law. All old guidance on “presumptive tax,” “monthly fixed tax amounts,” or “business license tax levels 1/2/3” no longer applies.

2. Obligations during the suspension period

During a duly notified suspension period, the household business generates no revenue and therefore owes no tax for the suspension period; however, it must still:

  • Submit all tax declarations, reports, and outstanding tax amounts for the period before suspension;
  • Not use invoices or engage in purchase/sale transactions during the suspension;
  • Finalize any outstanding financial obligations (if any).

If a household business suspends but still generates revenue or uses invoices, it is treated as operating without notification and may be subject to administrative penalties for tax and business registration violations.

Terminating a household business (permanent closure)

If you do not wish to continue the business, the household head carries out the termination procedure: pays all tax debts and financial obligations; submits the termination dossier to the commune-level business registration authority; returns the Household Business Registration Certificate (if required). After completion, the household business/tax code ceases to be effective.

Risks of suspending operations without notification

  • Administrative penalties for failing to notify temporary suspension;
  • Declaration and tax payment obligations still accruing for the “suspended” but unnotified period;
  • Imputed tax, recovery, and late payment penalties if the tax authority discovers transactions;
  • Affecting the household head’s later establishment of new household businesses/enterprises.

Frequently asked questions

Must a suspended household business pay presumptive tax?

No. The presumptive tax for household businesses has been abolished under Resolution 198/2025/QH15. During a duly notified suspension period with no revenue, the household business owes no tax for the suspension period.

Must a household business still pay business license tax during suspension?

Business license tax collection and payment were terminated from 01/01/2026 under Resolution 198/2025/QH15, applying to both operating and suspension periods.

What procedure is needed for permanent closure?

Carry out the household business termination procedure: settle tax obligations, submit the dossier to the commune-level business registration authority, and return the certificate (if required).

Notes on applying current laws

This article is for household business–tax knowledge and is presented for reference, helping readers understand the legal issue at a general level before preparing dossiers or carrying out procedures. Tax policy for household businesses is in a transition phase (presumptive tax abolished, switching to declaration); detailed rules may continue to be supplemented. To determine the exact tax obligations and procedures applicable to your household business, please contact an ANT Legal lawyer at 0966.475.966 for verification and advice before proceeding.

Common risks to watch out for

  • Applying old guidance on presumptive tax and business license tax that has expired.
  • Suspending operations without notifying the business registration and tax authorities.
  • Still using invoices and engaging in transactions during suspension.
  • Failing to settle tax obligations for the pre-suspension period.

How ANT Legal can help

ANT Legal advises on suitable suspension/termination plans, reviews outstanding tax obligations, drafts suspension or termination notification dossiers for household businesses, and works with tax and business registration authorities. For quick advice, please contact our lawyers at 0966.475.966.

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