When is the deadline for submission of VAT returns for the first quarter of 2024? How much are the fines imposed for late submission of VAT returns in Vietnam in 2024?
Vietnam: When is the deadline for submission of VAT returns for the first quarter of 2024?
Pursuant to Clause 1, Article 44 of the Law on Tax Administration 2019, the deadlines for submission of tax declaration dossiers in Vietnam are as follows:
Deadlines for submission of tax declaration dossiers
1. Deadlines for submission of tax declaration dossiers of taxes declared monthly and quarterly:
a) For taxes declared monthly: the 20th of the month succeeding the month in which tax is incurred;
b) For taxes declared quarterly: the last day of the first month of the succeeding quarter
According to the above regulation, for taxpayers who are required to declare value-added tax (VAT) on a quarterly basis, the deadline for submitting the tax declaration dossiers for the first quarter of 2024 is April 30, 2024. However, since April 30, 2024, and May 1, 2024, are public holidays, the deadline will be moved to the next working day, which is May 2, 2024.
Vietnam: When is the deadline for submission of VAT returns for the first quarter of 2024? (Image from the Internet)
Vietnam: How much are the fines imposed for submitting tax returns after expiration of the prescribed time limits in 2024?
Pursuant to Article 13 of Decree 125/2020/ND-CP, penalties for violations against regulations on time limits for submission of tax returns are as follows:
(1) Penalties imposed in form of cautions shall be imposed for violations arising from filing tax returns from 01 to 05 days after expiration of the prescribed time limits under mitigating circumstances.
(2) Fines ranging from VND 2,000,000 to VND 5,000,000 shall be imposed for the act of submitting tax returns from 01 to 30 days after expiration of the prescribed time limits, except the cases specified in clause 1 of this Article.
(3) Fines ranging from VND 5,000,000 to VND 8,000,000 shall be imposed for the act of submitting tax returns from 31 to 60 days after expiration of the prescribed time limits.
(4) Fines ranging from VND 8,000,000 to VND 15,000,000 shall be imposed for one of the following violations:
- Filing tax returns from 61 to 90 days after expiration of the prescribed time limits;
- Filing tax returns at least 91 days after expiration of the prescribed time limits if none of additional taxes is incurred;
- Failing to submit tax returns if none of additional taxes is incurred;
- Failing to submit annexes under regulations regarding tax administration by enterprises having related-party transactions, enclosing CIT finalization dossiers.
(5) Fines ranging from VND 15,000,000 to VND 25,000,000 shall be imposed for the act of filing tax returns more than 90 days after the prescribed deadline if such act results in additional taxes to be paid, and the taxpayer has fully paid taxes, deferred amounts into the state budget before the time of the tax authority’s announcement of the decision on tax inspection and examination, or before the time of the tax authority’s issuance of the report on the deferred submission of tax returns under the provisions of clause 11 of Article 143 in the Law on Tax Administration 2019.
In case where the fine amount prescribed in this clause is greater than the tax amount additionally incurred in the tax return, the maximum amount of fine for this act shall be equal to the tax amount payable specified in the tax return and shall not be less than the average of fine amounts in the range prescribed in clause 4 of this Article.
(6) Remedies:
- Compelling the full payment of deferred tax amounts into the state budget with respect to the commission of the acts prescribed in clause 1, 2, 3, 4 and 5 of this Article if the taxpayer delays filing their tax return, leading to the late payment of taxes;
- Compelling the submission of tax returns, enclosing annexes, in case of committing the acts specified in point c and d of clause 4 of this Article.
Vietnam: When does the 2% VAT reduction in 2024 last?
Pursuant to Article 2 of Decree 94/2023/ND-CP, this Decree comes into force from January 01, 2024 to June 30, 2024 inclusively. Thus, the 2% VAT reduction policy in 2024 applies until June 30, 2024.
Pursuant to Decree 94, VAT on goods and services that are currently subject to 10% VAT shall be reduced, except the following goods and services:
- Telecommunication, financial activities, banking activities, securities, insurance, trading of real estate, metal and precast metal products, mining products (excluding coal mining), coke mining, refined oil, chemical products. Further details are provided in Appendix I enclosed with Decree 94.
- Goods and services subject to excise tax. Further details are provided in Appendix II enclosed with Decree 94.
- Information technology products and services as prescribed in the Law on information technology. Further details are provided in Appendix III enclosed with Decree 94.
- VAT on goods and services of specific type as specified in Clause 1 of this Article shall be reduced consistently in all stages, including import, production, processing and trading. Coal products mined for sale (including coal products mined and then washed, sieved and classified under a closed process before they are sold) are eligible for VAT reduction. Coal products in Appendix I enclosed with Decree 94 are not eligible for VAT reduction in any stages other than the mining stage.
Coal products produced under a closed process of economic corporations or groups shall be also eligible for VAT reduction.
In case any of the goods and services in Appendixes I, II and III with Decree 94 is not subject to VAT or is subject to 5% VAT in accordance with the Law on value-added tax, VAT on that good or service shall be paid in accordance with the Law on value-added tax and shall not be reduced.
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