How much tax a Vietnam homestay pays: worked examples by revenue
HostBooking · · 7 min read
From 2026, a Vietnam homestay with yearly revenue of 1 billion VND or less pays no VAT and no personal income tax. Above it, accommodation is taxed at 5% VAT and 2% income tax on the revenue above 1 billion: at 2 billion VND revenue, income tax is 20 million, and VAT is 50 or 100 million depending on the method. Worked examples at four revenue levels, and how it differs from renting out a house.
Do you have to pay tax at all?
You have obligations, but may owe nothing. From 1 January 2026 household businesses no longer pay a flat tax or the business licence fee. Under Decree 68/2026/NĐ-CP, as amended by Decree 141/2026/NĐ-CP, yearly (calendar-year) revenue of 1 billion VND or less is not subject to VAT or personal income tax. Above it, you work out, file and pay your own tax each quarter. Even below the threshold, keep a revenue book to show the tax office if asked.
The rates for a homestay
- 5% VAT on revenue (accommodation is a service). Current guidance is not consistent on whether it applies to all revenue or only the part above 1 billion, so the table below shows both.
- 2% personal income tax on revenue above 1 billion, if you pay on revenue.
- From above 1 billion to 3 billion you may instead pay income tax on profit (revenue minus costs) at 15%. Above 3 billion the profit method is mandatory, at 17% (up to 50 billion) under the Personal Income Tax Law 109/2025/QH15.
These figures match Vietnam homestay tax 2026, which explains the laws, filing deadlines and books to keep.
Examples at four revenue levels
| Yearly revenue (VND) | Income tax (2% above 1 billion) | VAT 5% on all | VAT 5% on the excess | Total due |
|---|---|---|---|---|
| 600 million | 0 | 0 | 0 | 0 |
| 1.2 billion | 4 million | 60 million | 10 million | 64 million or 14 million |
| 2 billion | 20 million | 100 million | 50 million | 120 million or 70 million |
| 4 billion | Profit method required: see below | 200 million | 150 million | VAT + income tax on profit |
600 million VND: below the threshold, no VAT or income tax. Keep the revenue book and watch for when you near 1 billion.
1.2 billion VND: income tax = (1,200 − 1,000) million × 2% = 4 million. VAT = 60 million on all revenue, or 10 million on the excess only. You start filing from the quarter in which the year’s revenue passes 1 billion.
2 billion VND: income tax = 1,000 million × 2% = 20 million. VAT = 100 or 50 million. On the profit method, with 1.4 billion of documented costs, profit is 600 million × 15% = 90 million, far more than 20 million. At 2 billion revenue, the profit method only wins when profit is below about 133 million (133 million × 15% ≈ 20 million).
4 billion VND: income tax must be on profit, at 17%. With 2.8 billion of documented costs: profit 1.2 billion × 17% = 204 million. VAT is 200 million (on all) or 150 million (on the excess). At this size you want an accountant and an e-invoice for every sale.
The examples are illustrations under rules checked up to November 2026, not tax advice. Ask your tax office or accountant how VAT is applied (all revenue or the excess) and which costs count before you file.
Try your own numbers in the free homestay tax calculator: enter expected revenue and it works out income tax and VAT both ways. Not sure of your yearly revenue yet? Estimate it with the homestay revenue calculator.
Homestay vs renting out a house
Tax treats accommodation services differently from property leasing. A homestay that takes guests by the night with cleaning, linen changes and a front desk is an accommodation service: 5% VAT, 2% income tax. Renting a whole house or flat by the month or year, with no services, is property leasing: under current guidance usually 5% VAT and 5% income tax, with the same 1 billion VND threshold.
| Homestay (accommodation) | House rental (leasing) | |
|---|---|---|
| How it works | By the night, with services | By the month/year, no services |
| Tax-free threshold | 1 billion VND a year | 1 billion VND a year |
| VAT | 5% | 5% |
| Income tax | 2% above 1 billion | 5% above 1 billion |
| Income tax at 1.2 billion revenue | 4 million | 10 million |
| Other duties | Security certificate, fire safety, guest registration | Lease contract; tenants register residence themselves |
A flat let by the night through Airbnb or Booking.com is usually treated as accommodation, but tax offices may classify it differently. If you do both long lets and nightly stays, keep the two revenues apart in your books.
What about OTA bookings?
Taxable revenue is what guests pay for the room, OTA bookings included. Decree 68/2026 lets e-commerce platforms withhold, file and pay tax on behalf of household businesses in some cases; keep the platform’s withholding records so you do not pay twice.
Keeping the books on HostBooking
Every booking, desk sale and expense you record goes into books and tax: the S1a/S2a book in Excel, pre-set with the 1 billion threshold, 5% VAT and 2% income tax, editable to match your tax office. Record expenses monthly to see whether the profit method would pay off, and connect e-invoices once revenue passes 1 billion.
Frequently asked questions
My homestay takes 800 million a year. Do I pay tax?
No VAT or income tax is due below the 1 billion VND threshold. Keep a full revenue book anyway.
Is income tax on all revenue or only above 1 billion?
On the revenue method, the 2% income tax applies to revenue above 1 billion. For VAT, guidance is not yet consistent, so ask your tax office before paying.
Should I pay on revenue or on profit?
From above 1 billion to 3 billion, the profit method (15% of profit) only wins when profit is very low compared with revenue. Compare both in the homestay tax calculator. The method you choose must be kept for two years running.
How much tax on renting a flat by the month?
That is property leasing: under current guidance usually 5% VAT and 5% income tax, with the same 1 billion VND threshold. At 1.2 billion revenue, income tax is about 10 million.
When do I file?
From the quarter in which the year’s revenue passes 1 billion VND, quarterly, by the last day of the first month of the next quarter. Details in Vietnam homestay tax 2026.