VAT declaration is one of the important and mandatory obligations for all businesses operating in Vietnam. Making correct, complete and timely declarations not only helps businesses comply with tax laws, but also ensures the right to deduct and refund taxes and avoid the risk of being penalized. In the context of 2025, the VAT declaration process is being comprehensively digitized with many new points in terms of forms, deadlines and electronic submission methods. The following article will provide detailed instructions on how to declare VAT according to the 2025 standard, updated according to the latest regulations to help businesses easily implement, save time and ensure absolute accuracy.
What is VAT declaration?
VAT declaration is the process by which enterprises synthesize and determine the output and input value added tax arising in the tax period, then prepare and submit the tax declaration to the direct tax authority. This is a mandatory legal obligation stipulated in Law on Value Added Tax No. 13/2008/QH12 and the Decrees and Circulars of the Ministry of Finance, to help the State manage revenue, control cash flow, and ensure transparency in business operations.
In essence, VAT declaration is an intermediate step between recording actual business activities and the tax payment obligations of enterprises. Through the declaration, tax authorities can determine the amount of tax payable or deductible, refunded according to regulations. Making complete and timely declarations not only helps enterprises avoid the risk of administrative violations of tax, but also ensures the right to deduct and refund taxes legally, especially in the digital transformation period of the tax sector in 2025.
The role of VAT declaration in corporate financial management
VAT declaration plays an important role in financial and accounting activities, reflected in the following aspects:
- Ensuring compliance with tax laws: Is a mandatory obligation of all organizations and enterprises under the Law on VAT.
- Cash flow control: Recording detailed transactions helps businesses track and reconcile revenue and expenses accurately.
- Basis for determining tax obligations: Through VAT declaration, enterprises determine the amount of tax payable, deductible or refunded to ensure legal rights according to regulations.
- Increased transparency: Transparent VAT declaration records increase credibility with tax authorities, partners and investors.
From 2025, many new regulations on VAT declaration officially take effect, bringing both opportunities and challenges to businesses. Businesses want to ensure that all declaration processes are always correct, save time and avoid the risk of violations. Let's join MAN - Master Accountant Network to review the most important updates that any business needs to know.
Important updates on VAT declaration from 2025
From July 1, 2025, the Law on Value Added Tax No. 48/2024/QH15 officially takes effect, marking a major change in the structure of VAT policy, including expanding taxpayers, adjusting non-taxable subjects and amending tax calculation methods.
Attached to this Law, Decree 181/2025/ND-CP issued on the same day 01/07/2025 to provide detailed guidance on the implementation of a number of articles of the Law on VAT.
In addition, the policy of reducing VAT rates according to Resolution 204/2025/QH15 and Decree 174/2025/ND-CP This is also an important content that businesses must pay attention to when declaring VAT. Specifically:
- From July 1, 2025 to December 31, 2026, the VAT rate currently applied at 10% will be reduced to 8% for a number of groups of goods and services listed in the Decree.
- Enterprises need to check whether their goods and services are on the list of tax incentives or not, as well as update the way to declare the appendix attached to the VAT declaration to enjoy the policy.
Changes in the Law on VAT and guiding decrees not only affect the process but also affect the form of VAT declaration of enterprises. Understanding the current declaration methods such as monthly, quarterly or occasional declaration. Understanding the declaration forms will help enterprises make appropriate choices, comply with regulations and optimize tax administration efficiency.
Current forms of VAT declaration
Among the current forms of declaration, monthly VAT declaration is often applied to businesses with large scale of operation or with revenue exceeding the level prescribed by the tax authority. This form requires high accuracy and compliance in each declaration period.
Monthly VAT declaration
To determine whether a business is required to declare VAT monthly, it is necessary to consider the criteria on scale, revenue and business characteristics according to current regulations.
Applicable objects
According to the provisions of Article 8 Decree 126/2020/ND-CP and Circular 80/2021/TT-BTC, the monthly VAT declaration form is applied to enterprises and organizations with total revenue from sales of goods and provision of services in the previous year of 50 billion VND or more.
This includes:
- Enterprises with regular production and business activities, medium or large scale.
- The organization has many branches and affiliated units, generating regular sales transactions during the month.
- FDI enterprises and import-export enterprises with large volumes of invoices and transactions need to monitor output and input taxes more closely.
Monthly VAT declaration helps tax authorities closely manage businesses' VAT obligations, while helping businesses promptly update their tax situation, serving financial management and more accurate internal reporting.
Deadline for submitting monthly VAT declaration
Enterprises declaring monthly must:
- Prepare and submit VAT declaration no later than the 20th of the month following the month in which the tax liability arises.
For example: VAT return for October 2025 must be submitted before November 20, 2025.
Quarterly VAT declaration
Before declaring VAT quarterly, businesses need to clearly determine whether they are eligible for this form or not, based on their revenue level and operating time according to current regulations.
Applicable objects
Enterprises are allowed to declare VAT quarterly in the following cases:
- Revenue of the previous year: Total revenue from sales of goods and provision of services of the previous year does not exceed 50 billion, the enterprise meets the conditions for quarterly declaration.
- Newly established enterprises: Enterprises that have just started their business operations can choose to declare VAT quarterly. After operating for 12 months, from the next consecutive year, the revenue of the previous year (12 months) will be used to determine whether to declare monthly or quarterly.
Once the subjects eligible for quarterly VAT declaration have been clearly identified, businesses need to pay special attention to the deadline for preparing and submitting tax declarations.
Deadline for submitting quarterly VAT returns
The deadline for filing is the last day of the first month of the following quarter. For ease of visualization, businesses that declare VAT quarterly need to prepare and submit tax declarations according to the following timelines:
| Declaration period | Deadline for submitting VAT declaration |
| Quarter I (January – March) | By April 30 at the latest |
| Quarter II (April – June) | By July 31st at the latest |
| Quarter III (July – September) | No later than October 31 |
| Quarter IV (October – December) | No later than October 31 of the following year |
| Note: If the last day of the declaration submission deadline falls on a holiday, the business will be granted an extension to the next working day. | |
Therefore, businesses that declare VAT quarterly need to pay special attention to the above deadlines to ensure compliance with tax laws. Submitting on time not only helps businesses avoid late payment penalties but also demonstrates compliance and transparency in financial management.
Convert VAT declaration period
Enterprises can choose to convert to the form of declaration by regulation or by month if they meet the following conditions:
- Converting the declaration period from quarterly to monthly: Enterprises that are eligible to declare VAT quarterly but want to convert to monthly declaration must send a Notice (Form No. 07/GTGT) to the direct tax authority. The notification must be made before or at the same time as the submission of the VAT declaration of the first month in the calendar year in which the enterprise registers to convert.
- Converting the declaration period from monthly to quarterly: Enterprises that are currently declaring VAT monthly, if eligible and have the need to switch to quarterly declaration, need to submit a Request for Change of Tax Declaration Period according to Form No. 01/DK-TDKTT to the direct tax authority before January 31 of the year of expected conversion.
Important notes when declaring VAT quarterly or monthly
During the process of declaring value added tax (VAT), enterprises need to pay special attention to a number of important points to ensure compliance with legal regulations, minimize tax risks and avoid administrative violations that may arise during the process of declaring and paying taxes.
Full and valid transaction records
Each economic transaction arising between a business and a partner needs to have a complete and clear accounting record, including the following contents:
- Economic contract: Is the legal basis between the parties participating in the transaction.
- Valid VAT invoice: Must have full information, signature, tax code, no erasures or edits.
- Valid payment documents: For transactions worth 20 million VND or more, non-cash payment is required (bank transfer).
- Goods delivery or service acceptance report: Proves the completion of the transaction and serves as the basis for tax accounting.
If any valid documents are missing at the time of declaration, the enterprise will not be able to deduct input VAT or must adjust and exclude the corresponding output VAT from the tax declaration. This is to ensure the accuracy and legality of the tax declaration dossier according to current regulations.
How to fix incorrect VAT declaration or missing documents
In case the enterprise has declared VAT but discovers errors, mistakes or missing documents, it is necessary to prepare additional declarations and adjustments in accordance with regulations. The adjustment documents include:
- Amended tax return (for the period with the error).
- Additional and adjusted declaration (form No. 01/KHBS), if there is a difference in the amount of tax payable or deductible.
- Related accounting documents for comparison and as a basis for explanation to tax authorities.
Check information on invoices and documents
Enterprises need to review and compare information on invoices and accounting documents to ensure accuracy and validity before declaring taxes:
- The partner's name, address and tax code must match on the invoice, contract and payment documents.
- The date on the VAT invoice must match the delivery note, warehouse receipt or work acceptance note.
- Careful checking helps to limit errors in declaration, avoiding the risk of being charged additional tax or having input VAT deduction denied.
Missing imported goods: No decision on handling yet
When detecting imported goods are missing and there is no decision on how to handle them, the enterprise needs to make accounting adjustments, specifically:
- Debit account 1381 (Asset shortage awaiting processing)
- Credit account 133 (Deductible VAT)
At the same time, enterprises need to deduct the corresponding input VAT right on the declaration of the transaction period, to ensure that the declared data is honest, accurate and in accordance with the provisions of current tax laws.
Non-cash payment vouchers
In fact, many businesses still make mistakes, specifically:
- Splitting cash payments multiple times a day to the same supplier, but the total value exceeds VND 20 million, resulting in ineligibility for tax deduction.
- The date on the invoice does not match the date on the delivery note or warehouse receipt, causing discrepancies in the accounting records.
Above are important notes when declaring VAT monthly or quarterly that businesses need to pay attention to.
Determine the method of VAT declaration
According to current regulations, enterprises are allowed to choose between two methods of declaring VAT, including the deduction method and the direct method. Determining the appropriate method will be based on the scale of revenue, the characteristics of business activities as well as the level of compliance with accounting, invoice and document regimes of the enterprise.
Tax deduction method
The deduction method is applied when the enterprise satisfies the conditions on accounting, invoices and documents as prescribed in Article 12 of Circular 219/2013/TT-BTC, specifically:
- Enterprises and business organizations with revenue from selling goods and providing services of 1 billion VND/year or more.
- Enterprises voluntarily register to apply the deduction method (excluding business households and individuals making direct declarations).
- Newly established enterprises with investment projects, import-export activities or purchasing many fixed assets are often encouraged to declare according to this method to ensure the right to deduct or refund tax.
Direct method
The direct method applies to subjects that do not meet the conditions for declaration under the deduction method, including:
- Households, business individuals and enterprises with revenue under 1 billion VND/year (unless voluntarily registered for deduction).
- Some businesses do not fully comply with accounting, invoice and voucher regimes as prescribed.
- Foreign organizations and foreign contractors do not meet the conditions for declaration and deduction.
- Business establishments that buy, sell, and process gold, silver, and precious stones
- Newly established enterprises and cooperatives are not yet eligible to apply the deduction method.
After choosing and applying the appropriate VAT declaration method, businesses need to clearly understand the types of reports that must be submitted with the tax declaration to ensure valid tax records and compliance with regulations.
Types of Reports to be submitted when declaring VAT
Depending on the form of quarterly or monthly VAT declaration, businesses need to fully prepare relevant tax reports in accordance with current regulations.
VAT declaration
This is a mandatory declaration for all businesses, regardless of whether or not revenue is generated during the tax period. When declaring, businesses must use the correct form as prescribed by the tax authority, and attach a list of purchase and sale invoices in case of applying the VAT deduction method.
Personal income tax return (if any)
In case during the period, the enterprise incurs income payments to employees subject to personal income tax, it is required to prepare and submit a personal income tax declaration corresponding to the VAT declaration period (monthly or quarterly) to ensure compliance with the regulations of the tax authority.
Provisional corporate income tax report (if any)
Applicable to enterprises that generate profits during the period, make provisional calculations and make provisional payments of corporate income tax (CIT) quarterly. Determining the amount of provisional tax is carried out in accordance with the provisions of Decree 126/2020/ND-CP and related guiding documents, to ensure that tax obligations are declared and paid on time.
When does the obligation to declare VAT arise?
Not all VAT declarations are made at the head office. For business activities arising outside the locality, enterprises need to make separate declarations at the place where tax obligations arise. Some specific cases include:
- Construction activities, execution of works in the province or other locality where the enterprise has its headquarters (contractors directly execute items and works). In many cases, taxpayers must declare and pay VAT at the tax authority where the work is located.
- Sales and provision of itinerant services in other locations (for example, cross-provincial sales, event organization, exhibitions, temporary market/point of sale business) when generating revenue that meets the prescribed conditions may also have to be declared at the place of generation.
- Some cases that require separate declaration (declaration at the place of occurrence) are also listed in detail in the guiding Circular and directive documents of the Tax Department or Branch; on the contrary, there are cases where declaration is centralized at the head office but a table must be made to allocate the tax payable to the locality where it occurs.
Frequently Asked Questions
How much will businesses be fined for late submission of VAT declarations?
According to Article 13 of Decree 125/2020/ND-CP, violations of the deadline for submitting tax declarations will be penalized at levels corresponding to the number of days late. Specifically, if the tax is late from 01 to 05 days and there are mitigating circumstances, a warning will be issued; if it is late from 01 to 30 days (except in cases where a warning has been issued), a fine of 2 to 5 million VND will be imposed; if it is late from 31 to 60 days, a fine of 5 to 8 million VND will be imposed; if it is late from 61 to 90 days, a fine of 8 to 15 million VND will be imposed; and if it is late for more than 90 days, the taxpayer will be fined from 15 to 25 million VND and must pay additional late tax payment fees as prescribed.
Is it possible to change from monthly to quarterly reporting?
Yes. Enterprises that are declaring VAT monthly can switch to quarterly declaration if they meet the conditions prescribed in Article 9 of Decree 126/2020/ND-CP. Specifically, enterprises with total revenue from sales of goods and services in the previous year of less than 50 billion VND are allowed to declare quarterly. If they want to switch, they need to send a Request for Change of Tax Declaration Period (Form 01/DK-TDKTT) to the direct tax authority before January 31 of the year in which quarterly declaration begins.
What is the difference between VAT declaration 0% and 10%?
The difference between VAT 0% and 10% mainly lies in the subjects of application and the right to deduct and refund input tax. Specifically, the tax rate 0% applies to exported goods and services, international transportation or supplies to duty-free zones. Enterprises are allowed to deduct and refund input VAT if they meet the conditions of valid invoices, documents and payment via bank. Meanwhile, the tax rate 10% is a common tax rate applied to most domestic goods and services. Enterprises are still allowed to deduct input tax, but are not entitled to tax refunds, except in some special cases as prescribed. In short, VAT 0% mainly applies to export activities and is refundable, while VAT 10% is a domestic consumption tax and is not refundable.
Conclude
Declaring VAT in accordance with regulations not only helps businesses avoid tax risks but also demonstrates professionalism and transparency in financial management. Every small error in the process of declaring, submitting declarations or accounting for invoices can lead to restrictions on deduction rights, administrative fines or affect the reputation of the business.
To ensure that the tax declaration and payment process is accurate, on time and optimizes legal tax benefits, let MAN - Master Accountant Network support businesses in controlling, declaring and preparing standard VAT reports, helping to minimize risks, save time and improve financial operational efficiency.
Contact MAN – Master Accountant Network for advice and support.
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