No Penalty for Late Tax Return Filing When Changing Tax Period from Quarterly to Monthly
RegHub explainer by New MarketerLast updated:
Based on:Nghị định 373/2025/NĐ-CP - Ministry of Finance
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According to guidance from the Ho Chi Minh City Tax Department, businesses with revenue over VND 50 billion in 2025 must switch to monthly VAT filing from 2026 instead of quarterly filing. If a business mistakenly filed a quarterly return and then corrected this by re-filing monthly returns for January, February, and March 2026, the business is **not subject to administrative penalty** for late filing. The legal basis is Decree 373/2025/ND-CP (effective 14 February 2026), Article 1(c): taxpayers are not penalized for late filing of tax returns for tax periods that must be re-filed due to a change in the tax period. The re-filed monthly returns are treated as replacement returns for the previously filed quarterly return. The Tax Department notes that businesses should self-assess and seek specific guidance if they have any questions about the treatment of late payment surcharges.
Q&A: No Penalty for Late Tax Filing When Changing Tax Period
Source: Ho Chi Minh City Tax Department, Q&A dated 21 May 2026
Situation
A business with revenue over VND 50 billion in 2025 is required to file VAT returns on a monthly basis from 2026. However, the business mistakenly filed a quarterly return on 20 April 2026, then discovered the error and re-filed monthly returns for January, February, and March 2026.
Tax Department Conclusion
Pursuant to Article 1(c) of Decree 373/2025/ND-CP (effective 14 February 2026):
"Taxpayers shall not be subject to administrative penalty for late filing of tax returns for tax periods that must be re-filed due to a change in the tax period. Re-filed monthly tax returns are treated as replacement returns for the previously filed quarterly tax return."
The business is not subject to administrative penalty for late tax return filing in this case.
Notes
- The re-filed monthly returns are treated as replacing the quarterly return.
- If there are questions about the treatment of late tax payment surcharges, businesses should contact the tax authority directly for specific guidance.