The time for determining value-added tax (VAT) is a crucial basis for enterprises to declare VAT in the correct tax period, meet statutory deadlines, and ensure compliance with tax regulations. Accurate determination of this timing not only helps businesses minimize the risk of tax reassessments and penalties but also ensures transparency and accuracy in tax records.
Pursuant to Decree No. 181/2025/NĐ-CP, guiding the Law on Value-added Tax No. 48/2024/QH15, the time for determining VAT is specified in detail for each type of goods and services. Below is a comprehensive and practical summary to help enterprises quickly understand and apply the regulations correctly.
1. Exported and imported goods (Article 15)
Exported goods
- The enterprise may determine the VAT timing independently.
- However, it must be no later than the working day immediately following the date the goods are cleared through customs, in accordance with customs regulations.
Imported goods
- The time for determining VAT coincides with the time for determining import duty under the laws on export and import taxation.
2. Telecommunications services (Points a, b, c, Clause 1, Article 16)
a) Services requiring connection data reconciliation
- VAT timing: upon completion of data reconciliation in accordance with the contract.
- However, no later than two months from the month in which the service charges arise.
b) Period-based telecommunications services
- VAT timing: upon completion of data reconciliation.
- No later than the 7th day of the following month, or 7 days after the end of the agreed service period, whichever applies.
c) Prepaid telecommunications services and connection fees
- VAT timing: at the time of selling prepaid cards or collecting connection fees.
3. Electricity trading activities (Clause 2, Article 16)
a) Power generation companies operating in the electricity market
- VAT timing is determined based on the reconciliation between relevant parties (system operator, power generator, and electricity purchaser).
- No later than the last day of the monthly VAT declaration deadline.
- In cases involving Government guarantees, VAT timing shall follow the guaranteed terms and contracts approved by the Ministry of Industry and Trade.
b) Ordinary electricity sales activities
- VAT timing: upon completion of data reconciliation.
- No later than the 7th day of the following month, or 7 days after the end of the agreed billing period.
4. Clean water supply services (Clause 3, Article 16)
- VAT timing is determined upon completion of data reconciliation between the parties.
- No later than the 7th day of the following month, or 7 days after the end of the agreed service period, as stipulated in the contract.
5. Insurance business activities (Clause 4, Article 16)
- VAT timing is the time when insurance revenue is recognized, in accordance with the laws on insurance business.
6. Real estate business, infrastructure development, and housing projects (Clause 5, Article 16)
a) Ownership or usage rights have been transferred
- VAT timing: at the time of transfer of ownership or usage rights, regardless of whether payment has been collected.
b) Ownership or usage rights not yet transferred, but payment collected by project progress
- VAT timing: at the time payment is collected, or as agreed in the contract.
7. Construction and installation activities (Clause 6, Article 16)
- VAT timing: upon acceptance and handover of completed work volume, regardless of whether payment has been received.
8. Oil and gas activities (Clause 7, Article 16)
a) Sale of crude oil, condensate, and products processed from crude oil
- VAT timing: when the official selling price is determined.
b) Sale of natural gas, associated gas, and coalbed methane transported via pipelines
- VAT timing: when the volume of gas delivered during the month is determined.
- No later than the last day of the monthly VAT declaration deadline.
The determination of VAT timing plays a pivotal role in VAT declaration and compliance. The provisions set out in Decree No. 181/2025/NĐ-CP are designed to ensure transparency, consistency, and alignment with the specific characteristics of each industry. A clear understanding of VAT timing not only helps enterprises mitigate tax risks but also optimizes accounting processes and enhances proactive financial management.
