This was decided at a Cabinet meeting presided over by Chief Minister Arvind Kejriwal in Delhi.
Talking to reporters, Mr Kejriwal said, "The Cabinet has decided to simplify filing of the VAT by the traders as demanded by them."
Various traders' associations have been demanding the simplification of the VAT system.
He also announced extending the date to file the Form AR1 by the traders till January 31. Every registered dealer is required to get his accounts audited as per Delhi VAT Act and need to furnish audit report in Form AR1.
In its election manifesto the AAP had promised to simplify the VAT tax system.