NEW PROVISIONS ON VALUE-ADDED TAX (VAT) DECLARATIONS UNDER CIRCULAR NO. 89/2026/TT-BTC OF THE MINISTRY OF FINANCE PROVIDING DETAILED GUIDANCE ON THE LAW ON TAX ADMINISTRATION AND DECREE NO. 252/2026/ND-CP ON TAX ADMINISTRATION

On 30 June 2026, the Ministry of Finance issued Circular No. 89/2026/TT-BTC (“Circular 89”) providing guidance on the 2025 Law on Tax Administration and Decree No. 252/2026/ND-CP (“Decree 252”) on tax administration. Subsequently, on 10 August 2026, the Tax Department issued Official Letter No. 5746/CT-CS introducing the key new provisions of Circular 89.

Accordingly, we highlight below some notable new provisions under Circular 89 relating to VAT declarations:

1. Tax periods

The regulations on monthly/quarterly tax filing applicable to taxpayers newly commencing operations or business activities have been amended as follows:

“Where the revenue of the calendar year in which the taxpayer newly commences operations or business activities exceeds VND 50 billion (including cases where the taxpayer operates or conducts business for less than 12 months), the taxpayer shall declare tax on a monthly basis from the calendar year immediately following the year in which the operations or business activities commenced.”

Previously, taxpayers newly commencing business activities were allowed to choose quarterly VAT filing. After completing 12 months of business operations, the applicable tax filing period was determined based on the revenue of the immediately preceding calendar year, i.e. monthly or quarterly filing.

The regulations have been supplemented to provide that the tax authority shall issue a notification of acceptance or non-acceptance of a taxpayer’s request to change the tax filing period from monthly to quarterly. The tax administration information system shall provide taxpayers with information on their applicable tax filing period.

The following provision has also been amended and supplemented:

“Where a taxpayer discovers that it does not satisfy the conditions for quarterly tax filing, or where the tax authority determines that the taxpayer does not satisfy such conditions, the taxpayer shall file tax returns on a monthly basis from the first month of the following quarter, resubmit the monthly VAT returns for the preceding quarters, and determine and pay late-payment interest in accordance with regulations.”

This does not apply where the tax authority has issued a VAT refund decision in respect of the quarterly tax returns or where the tax authority has identified the issue through an inspection conducted at the taxpayer’s premises. The exclusion of cases where the tax authority has issued a tax refund decision in respect of quarterly tax returns is a newly added provision.

The regulations also add cases where VAT must be declared on an event-by-event basis, specifically:

“VAT payable by taxpayers falling under cases where they request the tax authority to issue electronic invoices on an event-by-event basis in accordance with the laws on electronic invoices.”

Additional cases subject to event-by-event tax filing include auction organizations, secured parties, and enforcement agencies falling under the cases of tax withholding, tax declaration on behalf of taxpayers, and tax payment on behalf of taxpayers as prescribed at Point c, Clause 1 and Points c, d and k, Clause 2, Article 22 of Decree No. 252/2026/ND-CP.

Where multiple events arise during a month, the taxpayer may file on a monthly basis. This provision is intended to reduce administrative procedures, as auction and enforcement activities may involve multiple transactions within the same month.

2. Tax authorities responsible for receiving and processing tax declaration dossiers

The regulations have been amended to clarify that:

“A taxpayer having an investment project eligible for a VAT refund under the VAT laws and wishing to claim a VAT refund for the investment project shall declare VAT for the investment project to the tax authority directly managing the taxpayer.”

Previously, the regulation provided that a taxpayer conducting business activities and having an investment project eligible for a VAT refund was required to prepare a separate VAT declaration dossier for each investment project.

A new provision has also been added:

“Where a taxpayer managed by the Large Enterprise Tax Sub-Department or the E-commerce Tax Sub-Department has an investment project, the taxpayer shall submit the tax declaration dossier for the investment project to the Provincial Tax Department of the province where the investment project is located.”

The regulations governing the tax authority responsible for receiving and processing VAT declaration dossiers for investment projects implemented across multiple provinces have also been amended as follows:

+ Where a project management board, branch, or newly established economic organization is established or assigned to directly implement and manage the investment project:
The project management board, branch, or newly established economic organization shall submit the VAT declaration dossier for the investment project to the tax authority directly managing such project management board, branch, or newly established economic organization.

+ Where no project management board, branch, or newly established economic organization is established or assigned to directly implement and manage the investment project:
The taxpayer shall submit the VAT declaration dossier for the investment project to the tax authority directly managing the taxpayer.

Previously, under Point a, Clause 1, Article 11 of Decree No. 126/2020/ND-CP, where an investment project was located in a province different from the location of the taxpayer’s (investment project owner’s) head office, including investment projects implemented across multiple provinces, the VAT declaration dossier for the investment project was required to be submitted to the tax authority where the investment project was located.

A new provision has also been introduced regarding separate tax filing by dependent units located in the same provincial-level administrative area as the taxpayer’s head office:

“Where the dependent unit has its own seal and bank account, directly sells goods or provides services, uses invoices of the dependent unit registered with the tax authority directly managing the dependent unit, fully records and accounts for input and output VAT, and wishes to declare and pay tax separately, the dependent unit shall declare and pay VAT to the tax authority directly managing the dependent unit.”

The regulations also supplement provisions on the tax authority responsible for receiving and processing VAT declaration dossiers submitted by organizations that withhold and pay tax on behalf of taxpayers, as well as organizations that declare and pay tax on behalf of taxpayers, in accordance with Point c, Clause 1 and Points c.1, d and k, Clause 2, Article 22 of Decree No. 252/2026/ND-CP.

For secured assets being real estate, the competent tax authority is the tax authority where the transferred real estate is located.

For secured assets other than real estate, the competent tax authority is the tax authority directly managing the organization or entity selling the secured assets.

3. Tax declaration dossiers

The regulations supplement provisions requiring separate VAT declaration dossiers for auction organizations, secured parties, and enforcement agencies falling under cases of tax withholding, tax declaration on behalf of taxpayers, and tax payment on behalf of taxpayers as prescribed at Point c, Clause 1 and Points c, d and k, Clause 2, Article 22 of Decree No. 252/2026/ND-CP.

A new provision has also been introduced for investment projects that are still in the investment phase but generate revenue from trial operations, financial activities, or the liquidation of raw materials:

“Where an investment project is in the investment phase and generates revenue from trial operations, financial activities, or the liquidation of raw materials, such revenue shall be declared on VAT return Form No. 01/GTGT, and the input VAT of the investment project declared on VAT return Form No. 02/GTGT must be offset against the VAT payable arising on VAT return Form No. 01/GTGT.”

The regulations also supplement provisions on VAT declarations applicable to agency activities.

Effective date

Circular No. 89/2026/TT-BTC and Decree No. 252/2026/ND-CP take effect from 1 July 2026.