Direct Method VAT Declaration Procedure

Direct method VAT declaration is a crucial obligation for business organizations and individuals subject to this tax calculation method. Understanding the applicable subjects, revenue determination, and filing processes ensures legal compliance and minimizes tax risks. Long Phan Consulting Company analyzes this procedure based on current regulations below.

Competent Authority for Resolution

The Provincial Tax Department or Local Tax Sub-department holds jurisdiction over the direct method VAT declaration procedure. This authority is established under Subsection 24, Part II of the Appendix issued with Decision No. 3078/QD-BTC dated September 3, 2025. Taxpayers may submit dossiers via one of three methods:

• Direct submission at the tax office headquarters.

• Submission via the postal system.

• Electronic submission through the General Department of Taxation Portal, National Public Service Portal, or T-VAN service providers.

Required Dossier Components

Taxpayers must prepare the specific dossier outlined in Subsection 24, Part II of the Appendix to Decision No. 3078/QD-BTC. The primary requirement is the VAT Declaration Form No. 04/GTGT. This form applies to taxpayers calculating tax via the direct method on revenue, issued with Appendix I of Decree No. 126/2020/ND-CP and Appendix II of Circular No. 80/2021/TT-BTC.

Implementation Sequence

The direct method VAT declaration process follows a normalized two-step sequence:

• Step 1: Submission. Taxpayers calculate the tax obligation and send the declaration to the tax authority. For electronic transactions, taxpayers access the chosen portal (General Department of Taxation or National Public Service Portal), complete the electronic dossier, digitally sign it, and submit it.

• Step 2: Reception. For physical or postal submissions, the tax authority receives the dossier according to regulations. For electronic submissions, the system processes data automatically. The Tax Department Portal sends a receipt notification within 15 minutes. Subsequently, the tax authority checks the validity and sends an acceptance or rejection notice within 01 working day from the receipt date.

Critical Regulatory Considerations

The following points address key aspects of the declaration process:

Submission Deadlines:

Taxpayers must file by the 20th of the following month for monthly declarations. Quarterly declarations fall due on the last day of the first month of the subsequent quarter. For declarations per occurrence, the deadline is the 10th day from the date the tax liability arises.

Administrative Fees:

The direct method VAT declaration procedure requires no state administrative fees.

Electronic Transaction Compliance:

Taxpayers using electronic methods must strictly adhere to Circular No. 19/2021/TT-BTC dated March 18, 2021. This circular provides guidelines on electronic transactions in the tax sector.

Conclusion

Strict adherence to direct method VAT declaration regulations ensures transparency and operational stability for businesses. Long Phan Consulting Company commits to resolving legal tax impediments with expertise and dedication. Contact Hotline 1900636389 for immediate professional assistance.