Basically there is no change in criteria to apply VAT methods (direct method vs. credit method), e.g. newly established enterprises and enterprises having yearly VAT taxable revenue less than VND 1 billion are generally subject to direct method unless voluntarily register to apply credit method. However, instead of submitting Form No. 06/GTGT to register for credit method or notify when changing VAT declaration method, Circular 93 provides that the tax authority would refer to the submitted VAT declaration dossier by the taxpayers which would define their chosen method of VAT calculation and declaration accordingly:
- If enterprises register to apply credit method, they are required to submit VAT declaration Forms No. 01/GTGT and 02/GTGT to the managing tax authority.
- If enterprises register to apply direct method, they are required to submit VAT declaration Forms No. 03/GTGT and 04/GTGT to the managing tax authority.
We do trust the above points are notable and sufficient, but should you have any question or need a deeper discussion on this issue, please do not hesitate to contact us.