Question:
Our company was established in 2011, and we have been filing VAT tax returns on a quarterly basis. In 2014, 2015, and 2016, our revenue was below 50 billion VND. However, at the end of 2016, our revenue was only 40 billion VND. As a result, we decided to continue with the 3-year period, which means we planned to file VAT tax returns on a quarterly basis for the years 2017, 2018, and 2019. Nevertheless, by the end of 2017, our revenue reached 60 billion VND. So, we would like to ask: should we continue to file VAT tax returns quarterly to complete the three-year cycle for 2017, 2018, and 2019, or should we switch to monthly VAT tax filing starting from 2018?
Answer:
Based on Article 15 of Circular No. 151/2014/TT-BTC dated October 10, 2014, by the Ministry of Finance, which provides guidance on the implementation of the provisions in Government Decree No. 91/2014/NĐ-CP dated October 1, 2014, amending and supplementing some articles of decrees related to taxes, and amending Point b, Clause 2, Article 11 of Circular No. 156/2013/TT-BTC dated November 6, 2013, by the Ministry of Finance, which provides guidance on the implementation of some articles of the Tax Management Law regarding VAT tax filing, the following applies:
If a company had revenue below 50 billion VND in 2016, it could apply for a stable VAT tax filing schedule on a quarterly basis from 2017, 2018, and 2019. Starting from 2020, the company would need to reevaluate its tax filing cycle based on the revenue of 2019.
