VAT declaration and payment is a mandatory step in the process of fulfilling tax obligations of enterprises and business households. In production and business activities, value added tax (VAT) is a common indirect tax, directly affecting business finances. Declaring and paying VAT in accordance with regulations not only helps minimize legal risks but also ensures tax deduction and refund rights. This article will provide detailed instructions on the VAT declaration and payment process according to Circular 80/2021/TT-BTC, and answer common questions such as indicator 32a, tax declaration period, how to submit declarations and the latest updated regulations from 2025.
What is VAT declaration?
VAT declaration and payment is the process by which a business or business household prepares a tax declaration form, declares revenue, input and output taxes, and then sends it to the tax authority, and then pays taxes if obligations arise. According to Article 8 of the current VAT Law, taxpayers are responsible for declaring accurately, honestly and on time.
Legal basis includes:
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Tax Administration Law No. 38/2019/QH14
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Circular 80/2021/TT-BTC of the Ministry of Finance
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Decree 126/2020/ND-CP on tax administration
Subjects required to declare and pay VAT include:
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Enterprises and cooperatives are operating in the production and trading of goods and services subject to VAT.
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Other organizations and individuals whose activities generate VAT obligations (including contractors, foreign investors...).
What is VAT declaration period?
VAT declaration period is a periodic period of time during which taxpayers are required to prepare and submit VAT declarations to the tax authority. Determining the tax declaration period helps businesses proactively plan to declare and pay taxes on time, limit the risk of violating the deadline and ensure financial obligations in a transparent manner. The concept of tax declaration period is also the determination of the frequency of declaration: monthly or quarterly, depending on the revenue scale of each unit.
According to Article 9 of Circular 80/2021/TT-BTC, the mechanism for classifying VAT declaration periods is as follows:
| Form of declaration | Applies to | Note |
|---|---|---|
| By month | Enterprises with revenue over 50 billion VND/year | High level of detail, tight control |
| Quarterly | Enterprises with revenue ≤ 50 billion VND/year | Priority is given to small and medium enterprises. |
Enterprises can register to switch between the two forms of declaration if needed. However, according to regulations, the conversion of VAT declaration period must be notified to the tax authority before the start of the new fiscal year. This is to ensure that the tax authority has a basis to monitor and check the declaration data in accordance with the applicable tax period.
Instructions for declaring VAT according to Circular 80
Applicable VAT declaration forms
From 2022, taxpayers will use Form No. 01/GTGT issued with Appendix II of Circular 80 to declare VAT using the deduction method.
Download declaration form No. 01/GTGT issued with Appendix II of Circular 80
How to make a VAT declaration (form 01/GTGT)
When preparing a declaration, taxpayers need to determine:
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Taxable revenue: is the total revenue generated during the tax period.
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Output VAT: calculated at tax rate 0%, 5% or 10% depending on the type of goods and services.
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Input VAT is deducted: from valid, legal invoices with full tax codes.
The declaration must be accurate according to each line of indicators, paying special attention to indicators that are of a final nature or affect tax refunds.
Meaning and how to record indicator 32a on VAT declaration
Indicator 32a on the VAT declaration is the line for declaring the value of goods and services that are not subject to VAT according to the provisions of Article 5 of the Law on VAT. This is revenue generated during the period but is not subject to tax, so it does not generate output tax, but still needs to be recorded to ensure transparency in total revenue.
Correct declaration of indicator 32a helps to accurately classify non-taxable revenue and taxable revenue, from which tax authorities can correctly determine the deductible input VAT allocation ratio, especially in cases where enterprises have both taxable and non-taxable activities.
Common sectors that generate declared values in this indicator include: education and training, healthcare, publishing, agriculture, software export, and some types of public services. For these enterprises, if they do not declare indicator 32a, the possibility of having input costs excluded from deduction or tax refund is very high.
When filling out the declaration, the value recorded in item 32a is the pre-tax sales value (price excluding VAT) of all non-taxable goods and services arising in the tax period. This is a mandatory item for enterprises that generate non-taxable revenue, even when there is no tax payable in the tax period.
Filing VAT Returns: Forms and Deadlines
Filing VAT returns is currently done mainly through the electronic tax system, bringing convenience and saving time for businesses. According to the guidance of the General Department of Taxation, electronic filing is mandatory for most businesses and organizations.
Specifically, taxpayers access the electronic portal of the General Department of Taxation at the address https://thuedientu.gdt.gov.vn, then log in to the system with the granted account. At the main interface, the enterprise selects the "Tax declaration" function, selects the correct declaration form (usually form 01/GTGT), enters data, signs and sends. After successful submission, the system will return a confirmation receipt from the tax authority - this is the legal basis to prove that the declaration obligation has been fulfilled on time.
Regarding the deadline for submitting declarations and paying VAT, taxpayers need to base on the applicable tax declaration period. According to the provisions of Circular 80/2021/TT-BTC:
| Tax return period | Deadline for filing declaration | Deadline for VAT payment |
|---|---|---|
| By month | No later than the 20th of the following month | Same day as the deadline for filing the return |
| Quarterly | No later than the 30th of the following quarter | Same day as the deadline for filing the return |
For example, if a business declares quarterly, the deadline for the second quarter of 2025 will be July 30, 2025. After this date, any late payment will be considered an administrative tax violation.
In case of late submission of declaration or underpayment of VAT, enterprises will be penalized according to the provisions of Article 13, Decree 125/2020/ND-CP. The fine ranges from 2 million VND to 25 million VND depending on the number of days late and the nature of the violation. In addition, taxpayers may also be charged a late payment fee of 0.03% per day on the outstanding tax amount.
Complying with the deadline for declaring and paying VAT not only helps businesses avoid unnecessary fines but also contributes to maintaining financial reputation with state agencies and business partners.
Regulations on VAT declaration in 2025
Starting from 2025, tax authorities will strengthen electronic tax management and deploy an additional electronic invoice system with authentication codes, which requires businesses to better control declared data. Some points to note:
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Update accurate business information on the system
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Only declare valid and legal invoices, do not buy or sell invoices.
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Declare on time, in the right form, and with the right targets
In case of adjustment, taxpayers can submit a supplementary declaration without having to redo the entire tax period.
Real-life situations of VAT declaration and payment
Enterprise A converted from monthly to quarterly declarations in early 2025. However, by the time of the second quarter declaration, accountants still prepared monthly declarations, leading to errors. After that, they had to submit supplementary declarations and explanations to the local tax office.
Enterprise B operating in the export sector, incorrectly declaring indicator 32a, causing output tax to be misunderstood as taxable, being requested by the tax authority to adjust, prolonging the tax refund process.
The above errors can all be avoided if the accountant has a good grasp of the profession and is updated with the latest regulations.
Conclude
In the context of increasingly strict tax management, VAT declaration and payment Not only does it stop at administrative obligations, it also directly affects the ability to deduct, refund taxes and prevent legal risks for businesses. A small error in declaration can lead to major financial consequences or be subject to additional collection after tax inspections and audits.
To ensure compliance with regulations, businesses need to develop standard accounting and tax procedures, regularly update new legal documents from the General Department of Taxation and optimize the use of technology in invoice and document management. In many cases, choosing an accounting and tax service unit with expertise and in-depth understanding of VAT policies is a safer and more economical solution than implementing it internally.
If you are looking for a reliable partner to accompany you in declaring VAT and ensuring full compliance with legal regulations, MAN – Master Accountant Network is the right choice. With a team of specialized tax experts, strict control procedures and multi-industry practical experience, MAN is committed to supporting businesses to declare correctly, fully and promptly – helping you focus on your core business activities.
Contact for support in accurate VAT declaration
MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile / Zalo: 0903 963 163
- E-mail: man@man.net.vn
- Website: https://man.net.vn
