Remove the instruction to submit Form 06/GTGT to register for VAT application according to the deduction method.
On September 19, 2017, the Ministry of Finance issued Circular No. 93/2017/TT-BTC amending and supplementing Clause 3 and Clause 4, Article 12 of Circular No. 219/2013/TT-BTC dated December 31, 2013 (amended and supplemented in Circular No. 119/2014/TT-BTC dated August 25, 2014) and abolishing Clause 7, Article 11 of Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance to reform administrative procedures in registration and conversion of VAT calculation methods to facilitate businesses. Circular No. 93/2017/TT-BTC takes effect on November 5, 2017.
Download the full circular: 93_2017_TT-BTC Register to apply VAT by 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 VAT application under the deduction method for newly established businesses and operating businesses with VAT taxable revenue of less than one billion VND.
Before:
Newly established businesses and operating businesses with VAT taxable revenue of less than one billion VND must submit Form 06/GTGT to the tax authority to register for VAT application under the deduction method. In case Form 06/GTGT is not submitted to the tax authority, VAT declaration must be made using the direct method.
2. Remove the instruction to submit Form 06/GTGT when converting VAT calculation method.
Before:
When converting the application of value added tax calculation methods (from direct method to deduction method and vice versa), businesses must submit Form 06/GTGT to the tax authority.
3. Supplementing guidance on the method of calculating VAT of business establishments determined according to the Value Added Tax Declaration Document guided in Article 11 of Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance (amended and supplemented in 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, from the effective date of Circular No. 93/2017/TT-BTC:
Determining the method of calculating VAT is based on the VAT declaration submitted by the business to the tax authority, specifically:
– If a business establishment registers to apply VAT according to the deduction method, it must send VAT Declaration Form No. 01/GTGT, 02/GTGT to the tax authority.
– If the business establishment registers to apply the direct method, it must send VAT Declaration Form No. 03/GTGT, 04/GTGT to the tax authority.
(VAT declaration Form 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 of the Ministry of Finance and requests the Tax Departments to promptly disseminate, popularize, and notify tax officers and taxpayers in the management area. During the implementation process, if there are any difficulties or problems, the Tax Departments are requested to promptly summarize and report to the General Department of Taxation for research and resolution.
