Remove the instructions for submitting Form 06/GTGT to register for VAT application using the deduction method.
On September 19, 2017, the Ministry of Finance issued Circular No. 93/2017/TT-BTC amending and supplementing Clauses 3 and 4 of Article 12 of Circular No. 219/2013/TT-BTC dated December 31, 2013 (which was amended and supplemented by Circular No. 119/2014/TT-BTC dated August 25, 2014) and repealing Clause 7 of Article 11 of Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance to reform administrative procedures in the registration and conversion of VAT calculation methods to facilitate businesses. Circular No. 93/2017/TT-BTC took effect on November 5, 2017.
Download the full text of the circular: 93_2017_TT-BTC Registration for applying VAT using the deduction method
The General Department of Taxation introduces the new contents of Circular No. 93/2017/TT-BTC dated September 19, 2017 of the Ministry of Finance as follows:
1. Remove the instruction to submit Form 06/GTGT to register for the application of VAT under the deduction method for newly established businesses and existing businesses with taxable VAT revenue under one billion VND.
Before:
Newly established businesses and existing businesses with VAT-taxable revenue under one billion VND must submit Form 06/GTGT to the tax authority to register for VAT application using the deduction method. If Form 06/GTGT is not submitted to the tax authority, VAT must be declared using the direct method.
2. Remove the instruction to submit Form 06/GTGT when changing the VAT calculation method.
Before:
When switching between value-added tax calculation methods (from the direct method to the deduction method and vice versa), businesses must submit Form 06/GTGT to the tax authorities.
3. Supplementing guidance on the method of calculating VAT for business establishments as determined according to the VAT declaration dossier as guided in Article 11 of Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance (amended and supplemented by Article 1 of Circular No. 119/2014/TT-BTC dated August 25, 2014 and Article 2 of Circular No. 26/2015/TT-BTC dated February 27, 2015 of the Ministry of Finance).
So, effective from the date Circular No. 93/2017/TT-BTC comes into force:
The method for calculating VAT is determined based on the VAT tax return submitted by the business to the tax authority, specifically:
– If the business registers to apply VAT using the deduction method, it must submit VAT declaration forms No. 01/GTGT and 02/GTGT to the tax authority.
– If the business establishment registers to apply the direct method, it must submit VAT declaration forms No. 03/GTGT and 04/GTGT to the tax authority.
(VAT declaration forms No. 01/GTGT, 02/GTGT, 03/GTGT and 04/GTGT issued with Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance – amended and supplemented by Circular No. 119/2014/TT-BTC dated August 25, 2014 and Circular No. 26/2015/TT-BTC dated February 27, 2015 of the Ministry of Finance)
The General Department of Taxation introduces the new contents of Circular No. 93/2017/TT-BTC dated September 19, 2017, issued by the Ministry of Finance, and requests that the Tax Departments promptly disseminate and inform tax officials and taxpayers in their respective areas of management. During implementation, if any difficulties or obstacles arise, the Tax Departments are requested to promptly compile and report them to the General Department of Taxation for consideration and resolution.
