VAT reporting is an important obligation to help businesses maintain the legality of their business operations. According to information from Ministry of FinanceIn 2024, the tax sector handled tax violations in 33,003 cases, including 736 enterprises and 32,267 individuals, with the total amount of tax collected and fined up to nearly 1,400 billion VND. In 2025, preparing and submitting VAT reports on time will not only help businesses avoid fines of up to tens of millions of VND, but also ensure reputation and optimize financial management processes.
Overview of VAT reporting under the new tax law 2025
According to information from Ministry of FinanceIn 2024, the tax sector conducted more than 20,600 tax inspections and audits, detecting and handling many violations related to tax declarations, including VAT reporting.
Starting from 2025, the amended Law on VAT has officially taken effect, creating important changes in the way tax obligations are determined and the declaration process. This directly affects the way businesses prepare VAT reports, from determining taxable revenue, deductions to the deadline for submitting periodic reports. Preparing and submitting VAT reports on time not only helps businesses avoid fines of up to tens of millions of VND, but also ensures reputation and optimizes financial management processes.
Definition and role of VAT
Value Added Tax (VAT)) is the type indirect tax calculated on the added value of goods and services in the process from production, circulation to consumption. This is one of the most important sources of revenue for the state, accounting for a significant proportion of total budget revenue and playing a key role in regulating the macro economy.
For businesses, declaring and submitting periodic VAT reports is not only a mandatory legal obligation but also a core accounting task. An accurate and timely report will help businesses comply with the law, avoiding administrative fines of up to tens of millions of VND due to late payment or incorrect declaration. At the same time, this also demonstrates transparency and professionalism, helping to enhance reputation in the eyes of state agencies, partners and customers.
See more articles at: VAT Overview – MAN
Updated legal basis related to VAT reporting
To prepare and submit VAT reports in 2025, businesses need to have a firm grasp of the newly issued regulations and detailed instructions. The core is the amended Law on Value Added Tax, effective from January 1, 2025, along with decrees and circulars guiding its implementation. This is the legal foundation to help accountants correctly perform the procedures for declaring, calculating, exempting and paying taxes in accordance with legal standards. Important documents include:
- Law on Value Added Tax No. 48/2024/QH15: Amending and supplementing many regulations on taxable subjects, tax calculation methods, and tax exemptions.
- Decree 181/2025/ND-CP: detailed instructions for implementing the Law on VAT.
- Circular, official dispatch of the Ministry of Finance and General Department of Taxation: Explanations and practical guidance in tax declaration and submission.
The importance of timely filing in VAT reporting
Correct compliance deadline for declaring and paying VAT is one of the most important legal obligations of enterprises. Late submission, false declaration or failure to submit reports not only affects reputation but can also lead to severe sanctions according to legal regulations.
According to Decree 125/2020/ND-CP On administrative sanctions for violations in the field of tax, specific penalties for late payment VAT declaration is defined as follows:
| Late submission of VAT declaration | Administrative penalty level |
| 1 – 5 days (with mitigating circumstances) | Warning |
| 1 – 30 days | 2,000,000 – 5,000,000 VND |
| 31 – 60 days | 5,000,000 – 8,000,000 VND |
| 61 – 90 days, or over 91 days but not to the extent of tax evasion | 8,000,000 – 15,000,000 VND |
| Failure to file tax return | Up to 25,000,000 VND + tax assessed |
In addition to administrative fines, enterprises must also pay late tax payment fees according to Article 59. Tax Administration Law No. 38/2019/QH14, at a rate of 0.03%/day calculated on the amount of late tax payment. For example, if a business is late in paying 1 billion VND in tax within 30 days, the late payment penalty can be up to 9,000,000 VND.
Declaring and paying taxes on time not only helps businesses avoid the above penalties but also maintains a transparent tax compliance history, creating favorable conditions in the process of approving VAT refunds or accessing bank credit. This is an important factor that helps businesses enhance their reputation and strengthen trust with management agencies, partners and customers.
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New points to note in the VAT Law 2025
The 2025 VAT Law brings about changes that have a direct impact on the preparation of periodic VAT reports. Understanding these points will help accountants avoid unnecessary mistakes and optimize tax obligations for businesses.
Changes in tax rates related to VAT reporting
The amended Law on VAT 2024 (effective from January 1, 2025) has important adjustments on VAT rate. Outside levels 0%, 5% and 10% familiar, the new law adds a mechanism VAT reduction from 10% to 8% for some groups of goods and services to stimulate demand and support businesses. This change requires accountants to review the entire list of goods and services, update invoice software and tax reports to avoid the risk of incorrect tax rates, being charged back or losing rights. VAT deduction.
| Tax rate | According to the old law | According to the new law 2025 | Typical subjects |
| 0% | Export, international transportation | Keep it the same | Goods, export services, international transportation |
| 5% | Some essential goods and services | Keep it the same | Clean water, fertilizer, medical equipment, textbooks |
| 8% | Do not have | New addition | Some industries and services are given incentives to support the economy. |
| 10% | General tax rate | Keep the same but narrow the range due to the addition of the 8% level | Goods and services not included in the above group |
See more articles at: VAT Rate – MAN
Stricter regulations on electronic invoices in VAT reporting
From June 1, 2025, according to Decree 70/2025/ND-CP and Circular 32/2025/TT-BTC, the management of electronic invoices will be tightened. Enterprises are required to create, issue and send invoices according to the unified data standards prescribed by the tax authorities.
The information on the invoice such as tax code, business name, date of issue and tax rate must be absolutely accurate. Errors in any of the indicators can cause the invoice to be considered invalid, leading to the invoice not being accepted. VAT deduction or be subject to VAT.
If the invoice is incorrect, the business must not cancel it but must issue an adjustment or replacement invoice. Particularly for businesses with high tax risks, the tax authority will require switching to using electronic invoices with codes within 10 working days from the date of receiving the notice.
In addition, the new regulation also expands the scope of authorization to issue electronic invoices. Enterprises need to quickly review and upgrade their software systems to ensure synchronization with tax authorities, and store data in the correct format and for the required time limit.
See more articles at: VAT invoice
Deadline for tax payment and VAT reporting
According to Article 44 of the Law on Tax Administration No. 38/2019/QH14, enterprises can declare VAT on a monthly or quarterly basis. Specifically, if an enterprise declares tax monthly, the VAT declaration must be submitted no later than the 20th day of the month following the tax liability. And if an enterprise declares quarterly, the declaration must be submitted no later than the last day of the first month of the following quarter.
Accountants need to pay attention to special cases regarding the deadline for submitting VAT reports, such as when the submission date falls on a weekend, a holiday, or there is an extension decision from the Government, the Tax Department or the General Department of Taxation. Monitoring official documents and notices helps businesses update promptly, avoiding delays. In addition, according to Clause 3, Article 44, declarations arising after each tax obligation must be submitted no later than the 10th day from the date of occurrence, ensuring compliance with legal regulations.
Regulations on tax refunds and tax deductions
In the amended Law on VAT 2024 (effective from January 1, 2025), regulations on VAT refunds and deductions are emphasized and more strictly controlled to ensure transparency in tax management.
Businesses are only allowed to input VAT deduction with legal invoices, documents and non-cash payments for invoices of 20 million VND or more. Expenses for purchasing fixed assets, machinery, equipment or serving investment projects are only deductible when proving legality and directly serving production and business activities. Invoices with incorrect information or inconsistent with tax authority data will be excluded from the deduction list.
Regarding tax refunds, according to Article 13 of the Law on Value Added Tax, enterprises with input tax that has not been fully deducted will be eligible for a refund if they meet the conditions. Typical cases include exports, investment projects that have not yet generated revenue, or special cases. Tax refund dossiers must be complete and accurate, including tax declarations, lists of invoices, contracts, bank payment documents, and related documents.
In addition, the tax authority has the right to pre-audit, post-refund or pre-refund, post-audit depending on the level of compliance risk of the enterprise. If the dossier is not transparent, the enterprise may have to wait for a long time to process or even be rejected. VAT refundTherefore, accountants need to regularly compare data with the electronic invoice system, carefully store documents, and closely monitor new guidance documents from the General Department of Taxation to ensure maximum benefits for businesses.
See more articles at: VAT deduction method – MAN
Experience in making timely and accurate VAT reports
To prepare an accurate VAT report and submit it on time, businesses need to build a strict workflow from data preparation to submitting documents via the tax authority's electronic information portal. Following each step not only helps to limit errors but also avoids the risk of administrative penalties.
Prepare and check input data
This is the fundamental step that determines the quality of tax reporting. Accountants need to collect all input and output VAT invoices during the reporting period, arranged chronologically for easy comparison with accounting books and payment documents.
According to Decree 123/2020/ND-CP, a valid invoice must have all the required information: name, tax code, date of issue, identification number; and for invoices over 20 million VND, there must be a non-cash payment document. In addition, accountants need to regularly look up invoices on the General Department of Taxation's system (e-invoice) to verify their legality, avoiding the use of incorrect invoices that cannot be deducted.
Using HTKK software and accounting software
Currently, HTKK is the official declaration support software of the General Department of Taxation. Accountants need to always update the latest version to ensure that the declaration is in accordance with regulations. During the data entry process, it is necessary to pay attention to important indicators such as:
- [21] Deductible input VAT
- [22] Undeducted input VAT from previous period carried forward
- [23] Output VAT
- [40] VAT payable
Many businesses also combine the use of specialized accounting software to automatically synthesize data from sales, purchasing, warehouse, finance subsystems, etc. These software can directly export XML files, significantly reducing errors due to manual entry and saving time.
See more articles at: Check VAT invoices online: Detailed step-by-step instructions in 2025
Prepare and submit VAT declarations and reports
After entering, the accountant uses the "Check declaration" function on the accounting system to check for logical errors and compare the declared data with the accounting books. When the data is certain, export the declaration to an XML file.
Next, log in to the General Department of Taxation's Electronic Information Portal at https://thuedientu.gdt.gov.vn, select “Declare and pay VAT”, upload the XML file and sign it with a valid digital signature. The system will send a Notice of receipt of electronic documents, the accountant needs to keep this notice as legal evidence of the completion of the declaration obligation.
Store and periodically compare VAT reports
After completing the submission of VAT reports, enterprises must store all relevant records and documents for at least 10 years according to the provisions of the Accounting Law. At the same time, they should periodically compare data with the tax authorities to promptly handle any errors or adjustments that arise. Strictly managing records will help enterprises when the tax authorities conduct inspections and checks.
10 common mistakes and how to fix them when making VAT reports
In the process of making VAT reports, even experienced accountants can make mistakes. Below are the 10 most common errors and how to fix them so you can be more confident in your work.
| STT | Common mistakes when making VAT reports | Causes of errors in VAT reporting | How to fix errors when reporting VAT |
| 1 | Incorrect declaration of data on the declaration form | Due to incorrect manual data entry, omission or incorrect aggregation of data | Compare the data from the invoice with the data on the declaration. Prepare a supplementary declaration according to Article 47, Tax Administration Law No. 38/2019/QH14 for adjustment. |
| 2 | Missing input invoices | Paper invoices are lost, electronic invoices are not fully stored or have not been sent by the supplier | Review the documents and contact the supplier to request them again. If there is no invoice, the deduction cannot be declared. |
| 3 | Confusion between monthly and quarterly reporting periods | Not knowing or not updating previous year's revenue to determine the declaration period | Based on previous year's revenue (over 50 billion declared monthly, under 50 billion declared quarterly) to determine the correct declaration period |
| 4 | Invalid input invoice | Received an illegal supplier invoice, or an invoice with incorrect information (tax code, company name, etc.) | Check the required information on the invoice. Look up the electronic invoice on the General Department of Taxation's e-invoice portal to confirm validity. |
| 5 | Missing non-cash payment documents | Transactions over 20 million but businesses pay in cash instead of through the bank | For invoices over 20 million, it is required to have payment documents via bank to be able to deduct tax. |
| 6 | Duplicate invoice declaration | Double manual entry or incorrect processing when there are replacement or adjustment invoices | Carefully check the invoice number and date to avoid duplicate declarations. Use accounting software to automatically detect errors. |
| 7 | Errors in making supplementary declarations | Carelessness in adjustment leads to incorrect adjustment of targets or creation of new errors | Prepare the supplementary declaration carefully, only adjusting the incorrect indicators. Avoid creating new errors in the period. |
| 8 | Not declaring VAT on imported goods | Missing or not understanding the process of declaring VAT paid at the import stage | Check the customs declaration carefully to fully declare import VAT. |
| 9 | Incorrect tax rate | Failure to promptly update changes in law or misclassification of goods/services (5%, 10%) | Compare the list of goods and services with current legal documents to apply the correct tax rate. |
| 10 | Late filing or tax payment | Missing deadlines, being overloaded with work, not having a plan to file tax reports | Use reminder tools, make detailed plans. Comply with the deadlines according to Decree 125/2020/ND-CP to avoid fines |
Example of VAT reporting for specific situations
After mastering the process and related regulations, applying them in practice will help accountants better understand how to prepare and process VAT reports. Below are some illustrative situations commonly encountered in businesses to clarify the method of declaration, tax calculation and error handling.
Example 1: Newly established business
A business established in January 2025, in the first quarter generated sales revenue of VND 800 million and purchased fixed assets worth VND 150 million, all of which are subject to VAT 10%. According to Article 10, Circular 219/2013/TT-BTC, if the first year's revenue is less than VND 1 billion, the business can choose to declare using the direct method on revenue instead of the deduction method. This is important because in the early stages of establishment, accountants do not have to process too much data and complex invoices.
With the direct method, accountants will not be able to deduct 15 million VND of input VAT from the purchase of assets, but only need to prepare a VAT report on form 04/GTGT, recording total revenue of 800 million VND. VAT payable is calculated as 1% of revenue, or 8 million VND. This method helps new businesses reduce the amount of accounting work, simplify procedures and ensure timely completion of VAT reports from the first period.
Example 2: A manufacturing and trading enterprise has many invoices.
A manufacturing enterprise declares using the deduction method. In the first quarter of 2025, it has total revenue of VND 12 billion (subject to tax rate 10%) and costs of purchasing raw materials and services of VND 9 billion, of which input VAT is VND 900 million. The accountant calculates output VAT as VND 1.2 billion. After comparing documents, invoices and books, the valid input VAT deductible is VND 900 million, resulting in the final tax payable of VND 300 million.
When preparing a VAT report, the accountant will accurately fill in the important indicators on the 01/GTGT declaration form, especially indicators [21], [22], [23] and [40]. The submission of the dossier must be done through the General Department of Taxation's electronic information portal before April 30, 2025. This case shows that a complete and accurate VAT report not only helps businesses fulfill their obligations to the State but also takes advantage of tax deduction benefits, significantly reducing actual payment costs.
Example 3: Handling errors when submitting VAT reports
A business completed its first quarter 2025 VAT report, but later discovered that it had omitted an invoice for purchasing supplies worth VND50 million (VAT VND5 million). This error often occurs when a business has many transactions and documents are not fully checked. According to Article 47 of the Law on Tax Administration, businesses must make a supplementary declaration to make adjustments, instead of waiting until the next period. This helps to make data transparent and avoid being fined by tax authorities.
The accountant will make a supplementary declaration on form 01/KHBS, adjusting the indicator [23] "Deductible input VAT" to increase by 5 million VND. Then, export the XML file and submit it to the tax authority. Timely preparation of supplementary VAT report not only ensures compliance with legal regulations but also protects the interests of the business, because the increased deductible tax will be offset in the next period, helping to reduce tax obligations.
Optimize VAT reporting process with technology
In the context of strong digital transformation, VAT reporting is no longer limited to manual data entry and traditional bookkeeping. Businesses today are taking advantage of technology, especially modern accounting software and electronic invoice systems, to improve accuracy, save time, and minimize the risk of errors. This not only helps accountants complete VAT reports on time but also supports more effective corporate financial management.
Benefits of modern accounting software
Modern accounting software brings many outstanding benefits to businesses in preparing VAT reports. Instead of having to manually enter data and compare data manually, the software has the ability to automatically synthesize data from subsystems such as purchasing, sales, warehouse and banking. This helps accountants easily detect errors, quickly compare information, and prepare tax reports according to the latest forms of the tax authority.
In addition, the software also integrates authorization features, electronic document storage, and error warnings when data is entered incorrectly. Thanks to that, accountants can significantly reduce the risk of declaring incorrect data, missing invoices or wrong declaration periods. More importantly, businesses can create and submit VAT reports online, completely replacing the complicated paper process, thereby saving operating and personnel costs.
Connecting electronic invoices and digital banking
One of the strengths of applying technology to VAT reporting is the ability to connect directly to the electronic invoice system. All input and output invoices will be automatically synchronized from the supplier's software to the accounting system, helping to eliminate the risk of losing or entering incorrect information. This also creates conditions for accountants to quickly check the validity of invoices, ensuring accurate and transparent declaration indicators.
Along with electronic invoices, connecting to digital banks brings great benefits in payment management. Financial transactions are automatically reconciled with related invoices, especially payments over 20 million VND. This helps businesses easily meet the mandatory regulations on non-cash payment documents for tax deduction. Thanks to that, the VAT reporting process becomes seamless, transparent and completely digital.
Conclude
In the context of the 2025 amended VAT Law officially taking effect, preparing and submitting VAT reports on time and accurately is not only a legal obligation but also the key to helping businesses maintain their reputation, avoid legal risks and optimize tax costs. Important changes in tax rates, electronic invoices, tax deductions and refunds require accountants to master new regulations and apply modern technology to manage data more effectively.
Enterprises that deploy accounting software, connect electronic invoices and digital banks early will minimize errors, save human resources and be proactive before tax inspections and audits. At the same time, preparing scientific documents, periodically comparing and storing documents according to prescribed standards will be important advantages for businesses to develop sustainably.
To accompany businesses in this period of change, MAN – Master Accountant Network Providing professional VAT consulting and reporting services, ensuring compliance with the law, minimizing risks and optimizing tax benefits for businesses. With a team of experts with many years of experience, we are committed to providing comprehensive, accurate and timely solutions.
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
