Latest VAT Deduction Method Tax Declaration Form 2024

Sample of VAT Declaration Form Using the Deduction Method?

In Appendix 2 of the List of Tax Declaration Forms issued together with Circular 80/2021/TT-BTC, the form 01/GTGT is regulated as the VAT declaration form using the deduction method for taxpayers engaged in production and business activities.

See details and download the form here.

Newest VAT declaration form using the deduction method for 2024? (Image from the Internet)

Which Business Establishments Apply the VAT Deduction Method?

According to Article 10 of the VAT Law 2008, amended by Clause 4 of Article 1 of the revised VAT Law 2013, the VAT deduction method is regulated as follows:

VAT Deduction Method

1. The VAT deduction method is defined as follows:

a) The VAT payable under the deduction method equals the output VAT minus the deductible input VAT;

b) The output VAT equals the total VAT on goods and services sold, recorded on the VAT invoice.

VAT on goods and services sold, recorded on the VAT invoice, is calculated by multiplying the taxable price of goods and services sold by the VAT rate applicable to those goods and services.

In cases where the payment price is recorded as a price inclusive of VAT, the output VAT is determined by deducting the taxable price calculated according to Point k, Clause 1, Article 7 of this Law from the payment price;

c) The deductible input VAT equals the total VAT recorded on VAT invoices for goods and services purchased, as well as proof of VAT payment for imported goods, provided they meet the conditions stipulated in Article 12 of this Law.

2. The VAT deduction method applies to business establishments that fully implement accounting, invoice, and documentation policies according to the legal provisions on accounting, invoices, and documentation, including:

a) Business establishments with annual revenue from selling goods and providing services of one billion dong or more, excluding households and individual businesses;

b) Business establishments voluntarily registering to apply the deduction method, excluding households and individual businesses.

3. The Government of Vietnam shall provide detailed regulations for this Article.

Therefore, the VAT deduction method applies to business establishments that fully implement accounting, invoice, and documentation policies according to the legal provisions on accounting, invoices, and documentation, including:

- Business establishments with annual revenue from selling goods and providing services of one billion dong or more, excluding households and individual businesses.

- Business establishments voluntarily registering to apply the deduction method, excluding households and individual businesses.

How Do Business Establishments Deduct VAT?

According to Article 12 of the VAT Law 2008, amended by Clause 6 of Article 1 of the revised VAT Law 2013, business establishments may deduct input VAT as follows:

- Input VAT on goods and services used for the production and business of taxed goods and services is fully deductible, including unrecoverable VAT on goods and services subject to VAT that are lost.

- Input VAT on goods and services used concurrently for the production and business of both taxed and non-taxed goods and services is deductible only for the portion used for the production and business of taxed goods and services.

Business establishments must separately account for deductible and non-deductible input VAT; if separate accounting is not possible, deductible input VAT is calculated based on the percentage ratio of revenue from taxed goods and services to total revenue from sold goods and services;

- Input VAT on goods and services sold to organizations and individuals using humanitarian aid or non-refundable aid funds is fully deductible.

- Input VAT on goods and services used for oil and gas exploration and development activities is fully deductible;

- Input VAT incurred in any month is declared and deducted when determining the payable tax amount for that month. If the business establishment discovers errors in declared, deducted input VAT, they may declare and deduct the correction before the tax authority announces the tax inspection or audit decision at the taxpayer's headquarters.

Regards!