VAT declaration with other errors, Indicator 22 declared by taxpayers must = Indicator 43 on the first declaration of the previous period

VAT declaration with other errors, Indicator 22 declared by taxpayers must = Indicator 43 on the first declaration of the previous period.

1. Question: The company filed VAT declaration with other errors, Indicator 22 declared by taxpayers must = Indicator 43 on the first declaration of the previous period. Please give instructions on how to deal with it.

2. Analysis of the facts: In fact, the company discovered errors in input invoices in the second quarter of 2025, so the company filed a supplementary declaration for the second quarter of 2025 for the incorrect input VAT, resulting in a reduction in the amount of tax refunded. Accordingly, the Company filed this value added tax declaration for the third quarter of 2025 based on the tax refund on the supplementary value added tax declaration for the second quarter of 2025, but the declaration was not accepted by the Tax Authority.

3. Legal basis:
- Pursuant to Point d, Clause 1, Article 14 of the Law on Value Added Tax 2024, taxpayers shall make additional declarations in the month or quarter in which the input value added tax arises and are incorrect or incomplete, if the tax declaration in the month or quarter in which the input value added tax arises is incorrect or incomplete, resulting in an increase in the tax payable or a decrease in the tax refunded; the taxpayer must pay the full amount of the increased tax payable or have the corresponding refunded tax amount recovered and pay late payment fees to the state budget (if any).

Taxpayers who make monthly or quarterly declarations discover errors or omissions if the tax declaration in the month or quarter in which the input value added tax arises is incorrect or omitted, resulting in a reduction in the amount of tax payable or only increasing or decreasing the amount of value added tax that can be deducted and carried forward to the following month or quarter; Accordingly, the Official Dispatch 1592/CT-NVT dated June 5, 2025 provides guidance:
1. Regarding additional declaration of tax declaration dossiers:
According to the report of the Tax Department of Region XIII, in case the taxpayer makes additional declaration of value-added tax declaration dossiers and the results according to the additional declaration dossiers only increase or decrease the amount of value-added tax not yet deducted in the tax period with errors, then make additional declaration dossiers according to regulations, the amount of value-added tax adjusted to increase or decrease the deduction of the tax period with errors is declared in the index [38] "Adjustment to increase the deductible value-added tax of previous periods" or index [37] "Adjustment to decrease the deductible value-added tax of previous periods" on the value-added tax declaration of the current tax period (the period still within the tax declaration period) is to satisfy the provisions in Clause 4, Article 7 of Decree No. 126/2020/ND-CP dated 19/10/2020 of the Government.
Accordingly, indicators 37 and 38 are used to declare in cases of adjusting the increase/decrease of the deductible VAT amount according to the Supplementary Declaration (01/KHBS)
When a company makes additional adjustments to the KHBS for the VAT declaration of previous periods and the result is at indicator No. 12 in Section II of the Supplementary Declaration (01/KHBS), the result at indicator 12 is entered into indicator 37 or 38 of the current period (If the result is positive, enter it into indicator 38 to adjust up, if the result is negative, enter it into indicator 37 to adjust down).

Therefore, when making a supplementary adjustment declaration and the result is at indicator No. 12 in Section II of this Supplemental Declaration (01/KHBS), the amount arising at indicator No. 12 must be declared in the current period (Period in which the KHBS supplementary adjustment declaration is made.
For example: In the 3rd quarter of 2024, it is discovered that the VAT declaration of the 1st quarter of 2024 is incorrect => In the 3rd quarter of 2024, an additional adjustment declaration will be made for the incorrect declaration of the 1st quarter of 2024 => The current period is the 3rd quarter of 2024).

4. Conclusion: The Company will make a value added tax declaration for the third quarter of 2025 based on the tax refund on the original value added tax declaration for the second quarter of 2025, in which the additional adjustment declaration for the VAT declaration of the second quarter of 2025 that gives the result at indicator No. 12 in Section II on the Additional Declaration (01/KHBS) will put the result at indicator 12 into indicator 37 or 38 of the current period of the third quarter of 2025 (If the result is positive, put it into indicator 38 to adjust up, if the result is negative, put it into indicator 37 to adjust down).

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