When starting a new business, making accurate tax declaration is a crucial step to ensure transparency and avoid legal risks. Among different taxes, Value-Added Tax (VAT) is the most fundamental one that businesses must declare. This article provides a detailed guide to VAT tax declaration for newly established companies.
1. Determine the VAT Tax Declaration Method
Currently, there are two methods of tax declaration for VAT:
- Deduction method: applied to businesses with annual revenue of 1 billion VND or more, or those voluntarily registered.
- Direct method: applied to small businesses or those not qualified for the deduction method.
New businesses must register their preferred VAT method within 10 days from receiving their business license.
2. Prepare Tax Declaration Documents
A VAT tax declaration dossier includes:
- VAT return (form 01/GTGT or 04/GTGT).
- Invoice lists for input and output.
- Related invoices, contracts, and receipts.
- Report on invoice usage.
Proper preparation avoids mistakes during tax authority inspections.
3. Deadline for Submitting Returns and Paying Taxes
New businesses usually file on a quarterly basis:
- Deadline for VAT returns: the 30th day of the first month of the following quarter.
- Deadline for tax payment: same as the return deadline.
For example: Quarter I ends on March 31 → VAT tax declaration must be submitted by April 30.
4. How to File Tax Declaration Online
Steps to file VAT tax declaration electronically:
- Log in using your digital signature.
- Select the correct VAT return form.
- Input invoice data.
- Sign digitally and submit.
- Pay tax online via linked banks.
This process saves time, costs, and ensures transparency.
5. Key Notes
- Always respect tax declaration deadlines to avoid penalties.
- Keep invoices and records for at least 10 years.
- Submit a “zero declaration” return even when no revenue is generated.
- Correct mistakes promptly with supplementary declarations.
