Are crude oil and natural gas mining enterprises eligible for an deadline extension on VAT payment in Vietnam in 2024?

Are crude oil and natural gas mining enterprises eligible for an deadline extension on VAT payment in Vietnam in 2024?

Per Article 3 of Decree No. 64/2024/ND-CP, the following regulations apply:

Eligible Entities

1. Enterprises, organizations, households, business households, and individuals engaged in production activities in the following economic sectors:

a) Agriculture, forestry, and fishery;

b) Food production and processing; textile; garment production; leather production and related products; wood processing and production of wood, bamboo, and rattan products (excluding beds, cabinets, tables, chairs); production of products from straw, thatch, and woven materials; paper manufacturing and paper products; production of rubber and plastic products; production of non-metallic mineral products; metal production; mechanical processing; metal treatment and coating; production of electronic products, computers, and optical products; car manufacturing and other motor vehicle production; production of beds, cabinets, tables, chairs;

c) Construction;

d) Publishing activities; film production, television program production, sound recording, and music publishing;

dd) Mining of crude oil and natural gas (excluding corporate income tax for crude oil, condensate, and natural gas collected under agreements, contracts);

e) Beverage production; printing and replication of all types of recordings; production of coke, refined petroleum products; production of chemicals and chemical products; production of fabricated metal products (excluding machinery, equipment); motorcycle and motorbike production; maintenance and installation of machinery and equipment;

g) Wastewater drainage and treatment.

...

Enterprises involved in the mining of crude oil and natural gas are eligible for a VAT payment deadline extension in 2024.

Note: Decree No. 64/2024/ND-CP becomes ineffective from January 1, 2025.

Are crude oil and natural gas mining enterprises eligible for a VAT payment deadline extension in Vietnam in 2024? (Image from Internet)

What are procedures for the VAT payment deadline extension for crude oil and natural gas mining enterprises in Vietnam in 2024?

Article 4 of Decree No. 64/2024/ND-CP regulates the implementation of the VAT payment deadline extension for crude oil and natural gas mining enterprises in 2024 as follows:

For value-added tax (excluding value-added tax on imports):

- Extend the tax payment deadlines for VAT amounts that are due (including amounts allocated to other provincial levels where the taxpayer's head office is located, amounts paid on a per-occurrence basis) for the tax periods from May to September 2024 (for monthly VAT declarations) and the second quarter of 2024, third quarter of 2024 (for quarterly VAT declarations) of enterprises and organizations as mentioned in Article 3 of Decree No. 64/2024/ND-CP.

- The deadline extension period is 5 months for VAT amounts of May 2024, June 2024 and the second quarter of 2024; 4 months for VAT amounts of July 2024; 3 months for VAT amounts of August 2024; and 2 months for VAT amounts of September 2024 and the third quarter of 2024.

- The deadline extension period is calculated from the day after the statutory tax payment deadline as stipulated by tax management laws.

Entities that are eligible for deadline extension must declare and submit their monthly, quarterly VAT returns according to current legal regulations, but are not required to pay the VAT amounts due as declared in the returns.

When must the VAT deadline extension request for 2024 be submitted?

The procedure for submitting an deadline extension request is implemented according to Article 5 of Decree No. 64/2024/ND-CP as follows:

- Taxpayers who directly declare and pay taxes to tax authorities that are eligible for deadline extension shall submit the first or substitute deadline extension Request Form (electronically or as a hard copy sent directly to the tax authority or via postal service) in accordance with the form in the Annex issued with this Decree to the directly managing tax authority once for all amounts of tax and land rent incurred in the extended tax periods together with the timing of tax declaration filing according to legal regulations on tax management.

In case the deadline extension Request Form is not submitted together with the tax return filing, the latest submission date shall be September 30, 2024. The tax authority will still process the deadline extension for tax and land rent amounts incurred during the extended periods before the Form is submitted.

If the taxpayer has amounts eligible for deadline extension managed by different tax authorities, the directly managing tax authority is responsible for communicating the deadline extension request to the relevant tax authorities.

- Taxpayers shall self-determine and be responsible for the accuracy of their deadline extension requests as per this Decree.

If the taxpayer submits the deadline extension request to the tax authority after September 30, 2024, the tax and land rent deadline extension will not be granted as per this Decree.

Should taxpayers amend their tax declaration for the extended tax period resulting in an increased payable amount and submit it to the tax authority before the deadline extension deadline, the extended tax amount includes the increment due to the amendment.

If the taxpayer submits the amended tax declaration after the deadline extension deadline, the additional amount will not be extended.

Thus, taxpayers must submit the 2024 VAT deadline extension request before September 30, 2024.