VAT declaration is a mandatory procedure for all businesses to ensure compliance with the law and financial transparency. According to statistics from the General Department of Taxation, In the first quarter of 2024 alone, there were more than 850,000 VAT declarations. are filed online, reflecting the popularity and importance of this obligation.
Moving into 2025, the declaration process will continue to be improved under the 2019 Tax Administration Law and new decrees, helping to reduce administrative procedures. For example, with a revenue of VND 1.2 billion in January 2025, a commercial enterprise must pay VAT after deduction of VND 60 million, showing that the declaration plays a direct role in determining tax obligations.
See more articles at: VAT declaration and payment
What is a VAT return?
The value added tax (VAT) declaration is a mandatory form that businesses or business households must submit to the tax authority. This is the legal basis for recording input and output VAT, and determining tax obligations. According to VAT Law 2024 and guidance documents, VAT declarations help management agencies monitor production, business and budget contributions.
Understanding the VAT declaration is the foundation for businesses to declare correctly and completely. If there are errors, businesses may be subject to additional taxes or administrative penalties. Therefore, the VAT declaration is not only an administrative procedure but also directly affects the reputation and cash flow of the business.
See more articles at: VAT Overview
Subjects required to make VAT declarations
According to the provisions of the 2024 Law on VAT, entities required to submit VAT declarations include enterprises, cooperatives, business households and organizations engaged in the purchase and sale of taxable goods and services. In addition, some cases of foreign individuals and organizations doing business in Vietnam must also declare.
Entities applying the deduction method must prepare a VAT declaration according to form 01/GTGT. Business households and individuals applying the direct method must prepare a declaration according to form 04/GTGT. Correct classification of subjects and declaration forms is an important condition for the tax authority to accept them properly.
| TARGET GROUP | DETAILED DESCRIPTION | LEGAL BASIS |
| Businesses and business organizations | All organizations and enterprises that produce and trade goods and services subject to VAT, including domestic enterprises and FDI enterprises. | Law on VAT 2024, Article 7 |
| Business households, individual businesses | Households and individuals doing business with revenue above the taxable threshold (VND 100 million/year or more) must prepare VAT declarations using the lump sum method or declare directly. | Law on Tax Administration 2019, Article 42 |
| Organizations and individuals importing goods | Enterprises and individuals involved in importing goods must submit VAT declarations at the import stage. | Law on VAT 2024, Article 9 |
| Export authorization organization | The unit that receives the consignment to export goods must prepare a VAT declaration according to regulations, ensuring the correct tax declaration at the export stage. | Decree 174/2025/ND-CP, Article 12 |
| Business establishments with investment projects | Enterprises implementing new investment projects and expanding production and business scale need to declare VAT for tax deduction and refund. | VAT Law 2024, Article 13 |
| Foreign organizations without permanent establishments in Vietnam | In case of providing cross-border services (digital services, software, online advertising...) but tax obligations arise in Vietnam. | Decree 126/2020/ND-CP, Article 30 |
See more articles at: Subjects subject to VAT
New points in VAT declaration in 2025
From July 1, 2025, according to Decree 174/2025/ND-CP, the tax rate of 10% will be reduced to 8% for many groups of goods and services. This will directly affect the preparation of VAT declarations. Enterprises must update their declaration forms and software to accurately reflect the amount of tax payable.
Another new point is that the tax authority encourages the submission of electronic VAT declarations on the General Department of Taxation's Information Portal. This helps reduce errors due to manual data entry and shortens the time for processing documents.
In addition, the connection of electronic invoice data and VAT declarations is also strongly implemented. This helps tax authorities cross-check and limit the situation of false declaration or omission of invoices.
See more articles at: VAT Law 2024 compared with VAT Law 2008: Changes to note
VAT declaration forms for 2025
The 2025 VAT declaration system includes 05 main forms, according to the provisions of Circular 80/2021/TT-BTC, amended and supplemented by Circular 40/2025/TT-BTC.
Form 01/GTGT
This is a VAT declaration form for businesses and business organizations that apply the tax deduction method and generate production and business activities. This form is commonly used to declare revenue, output tax, input tax, and determine the number of VAT declarations that must be submitted or deducted/refunded.
Form 02/GTGT
This VAT declaration form is applicable to entities that pay tax by the deduction method but are eligible for a tax refund for investment projects. It serves the purpose of declaring and requesting input tax refunds in cases where the investment project meets the conditions.
Form 03/GTGT
This form is for entities that calculate VAT using the direct method (without input deduction), typically activities such as buying, selling, and processing gold, silver, and precious stones. Enterprises or individuals doing business in this field will use VAT declaration form 03/GTGT to declare VAT incurred.
Form 04/GTGT
This is a VAT return for taxpayers who calculate tax using the direct method on revenue, i.e. input invoices are not deductible; instead, tax is calculated based on a percentage of revenue. This form is suitable for business households, individuals or small businesses that do not apply the deduction method.
Form 05/GTGT
VAT declaration form 05/GTGT is applicable to cases where enterprises apply the deduction method but have construction activities or real estate transfer in a province other than the head office. This form helps to accurately declare the allocation of VAT according to the location of the activity.
| SAMPLE | APPLICABLE SUBJECTS | MAIN PURPOSE |
| 01/VAT | Business – Deduction Method | Overall declaration of output, input, deduction |
| 02/VAT | Business – deductions, investment projects | Declaration of input tax refund in investment project |
| 03/VAT | Trading and manufacturing activities (eg gold, precious stones) | Tax declaration by direct method |
| 04/VAT | Business households, individuals, small businesses | VAT declaration based on revenue |
| 05/VAT | Deducting enterprises, operating outside the headquarters area | Tax allocation declaration by location of operation |
Businesses can download the full 05 latest VAT declaration forms according to Circular 80/2021/TT-BTC and Circular 40/2025 at the Law Library via the following link: Download VAT declaration form.
Latest VAT declaration process in 2025
According to Decree 174/2025/ND-CP and instructions at Circular 80/2021/TT-BTC (still valid for the declaration process), the preparation of VAT declarations for 2025 is mainly done through the electronic tax system (eTax) of the General Department of Taxation. The basic process includes the following steps:
Step 1: Determine the declaration period
Enterprises and organizations must clearly define their VAT declaration cycle, monthly or quarterly. Pursuant to Article 8, Decree 126/2020/ND-CPEnterprises with revenue of 50 billion VND or more must declare monthly; smaller enterprises can choose to declare quarterly.
Step 2: Collect invoices, input and output documents
Business accountants must collect all output VAT invoices (sales, service provision) and input VAT invoices (purchase of goods, services, imports, etc.) arising during the declaration period. This is the basis for determining the amount of VAT payable or deductible. Note that electronic invoices under Decree 123/2020/ND-CP are mandatory.
Step 3: Process data and prepare declaration
After collecting documents, the accountant must compare the information, eliminate invalid invoices and determine:
- Total output VAT.
- Total input VAT eligible for deduction.
Difference between output and input VAT (if positive, it is the tax payable, if negative, it can be deducted from the next period or refunded according to the provisions of Article 13 of the 2024 VAT Law).
Step 4: Make a declaration on the electronic tax system
Businesses log in to the eTax portal (thuedientu.gdt.gov.vn), select the VAT declaration form (01/GTGT). Fill in all the information about revenue, output tax, input tax, deductible tax, proposed refund amount... All data must match the issued electronic invoice.
Step 5: Sign and submit the declaration
After completing the declaration, the accountant uses the enterprise's digital signature (token) to confirm and submit the declaration to the system. The submission date is calculated from the time the system successfully accepts it. Submission deadline: no later than the 20th of the following month for monthly declarations, or the last day of the first month of the following quarter for quarterly declarations.
Step 6: Pay taxes (if any)
If, after declaration, the output VAT is greater than the deductible input tax, the enterprise must pay the difference to the state budget. Tax payment can be made through the electronic tax payment portal of the General Department of Taxation or through a commercial bank that coordinates the collection.
Step 7: Storage and reconciliation
Enterprises need to store all declaration records, including: VAT declarations, invoice lists, and related documents. At the same time, periodically check with data on the electronic invoice system to avoid risks when tax authorities inspect.
See more articles at: VAT declaration in 2025: some common errors and how to fix them
Regulations on submitting VAT declarations in 2025
Filing VAT returns is a mandatory obligation for all businesses and business organizations, playing an important role in ensuring compliance with the law and transparently managing tax obligations. In 2025, along with new regulations on VAT, understanding the deadline for filing returns and penalties for late submission will become a key factor to help businesses avoid the risk of administrative penalties and unnecessary costs.
Deadline for submitting VAT declaration
From July 1, 2025, the deadline for submitting VAT declarations is prescribed as follows (based on Tax Administration Law 2019, Circular 40/2021/TT-BTC and guidance documents):
- Monthly tax declaration: If a business or business household declares monthly, the VAT declaration must be submitted no later than the 20th day of the following month from the month in which the tax liability arises.
- Quarterly tax declaration: if quarterly tax declaration is selected, the VAT return must be submitted no later than the last day of the first month of the following quarter, i.e. the end of the month following the end of the tax quarter.
- Tax declaration upon each occurrence: in some cases where tax obligations arise that do not coincide with the regular monthly/quarterly declaration period, the VAT declaration must be submitted within 10 days from the date the tax obligation arises.
- For business households paying by lump sum method, the deadline for submitting annual VAT declaration is prescribed according to the calendar issued by the tax authority; usually no later than December 15th of each year. In special cases such as newly established households, business changes, or using invoices for each occurrence, the submission deadline can be shortened to 10 days from the date of commencement of operations or revenue generation.
See more articles at: Deadline for submitting VAT declaration from July 1, 2025
Penalty for late submission of VAT declaration
To help businesses understand their responsibilities and avoid financial risks, the law has specifically stipulated the penalty for late submission of VAT declarations. These penalties are classified based on the number of days of late payment, applied separately to organizations and individuals. The following table summarizes the penalty frameworks in detail for your convenience in monitoring and proactively complying.
| LATE SUBMISSION TIME | PENALTIES FOR ORGANIZATIONS | PENALTIES FOR INDIVIDUALS | NOTE |
| 1 – 5 days (with mitigating circumstances) | Warning | Warning | Tax authorities consider specific circumstances |
| 1 – 30 days | 2 – 5 million VND | 1 – 2.5 million VND | Applicable if there are no mitigating circumstances |
| Over 30 days to 90 days | 5 – 8 million VND | 2.5 - 4 million VND | According to Decree 125/2020/ND-CP |
| Over 90 days but not yet filed | 8 – 15 million VND | 4 – 7.5 million VND | Required filing and tax due |
| Prolonged, no application | 15 – 25 million VND | 7.5 - 12.5 million VND | Strict handling, with coercive measures |
| Late payment of taxes (in addition to administrative fines) | Compulsory payment of full tax and late payment | Compulsory payment of full tax and late payment | Late payment fee is calculated at %/day on the tax amount. |
Example of VAT return
A trading company had revenue in July 2025 of 1 billion VND, output VAT 8% equivalent to 80 million VND. In the same period, the company had valid input invoices worth 500 million VND, of which input VAT was 40 million VND.
When making a VAT declaration, the accountant will declare 80 million VND in output tax and 40 million VND in input tax. The tax payable during the period is 40 million VND, which is the difference between output and input. This example shows that correct and complete declaration will help businesses optimize their tax obligations.
In case the enterprise under-declares input invoices, the tax payable will be higher than the actual amount. On the contrary, if the output invoices are incorrectly declared, it can lead to penalties and additional collection. Therefore, it is extremely important to prepare an accurate VAT declaration.
Conclude
VAT declaration is a mandatory procedure, which is of great significance in tax management and business operations of enterprises. Understanding the subjects, processes and new points in 2025 will help enterprises be more proactive in tax work.
In the context of constantly changing tax policies, businesses should regularly update information from tax authorities. At the same time, using declaration support software will help minimize errors and save time.
If your business needs detailed advice on VAT declarations or related issues, please contact us immediately. MAN – Master Accountant NetworkMAN's team of experienced experts is ready to support businesses to comply with regulations and optimize tax costs.
Contact information:
MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Hotline: 0903 963 163 – 0903 428 622
- E-mail: man@man.net.vn
