Is November 20, 2024, the deadline for submitting the VAT declaration for October in Vietnam?

Is November 20, 2024, the deadline for submitting the VAT declaration for October in Vietnam?

According to Clause 1, Article 44 of the Law on Tax Administration 2019 which specifically outlines the timeline for submitting tax declarations as follows:

Deadline for submitting tax declaration dossiers

1. The deadline for submitting tax declaration dossiers for taxes declared monthly or quarterly is stipulated as follows:

a) No later than the 20th of the month following the month in which the tax obligation arises, for monthly declarations and submissions;

b) No later than the last day of the first month of the following quarter in which the tax obligation arises, for quarterly declarations and submissions.

2. The deadline for submitting tax declaration dossiers for taxes calculated annually is stipulated as follows:

a) No later than the last day of the third month from the end of the calendar year or fiscal year for annual tax settlement dossiers; no later than the last day of the first month of the calendar year or fiscal year for annual tax declaration dossiers;

b) No later than the last day of the fourth month from the end of the calendar year for personal income tax settlement dossiers for individuals directly settling taxes;

c) No later than December 15 of the preceding year for predetermined tax declaration dossiers for business households, individuals paying tax according to the presumptive tax method; in case of new business activities, the deadline is no later than 10 days from the commencement date of business activities.

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Therefore, according to the above regulations, November 20, 2024, is the deadline for submitting the VAT declaration for October 2024.

Is November 20, 2024, the deadline for submitting the VAT declaration for October in Vietnam? (Image from Internet)

What are the regulations on the VAT deduction method in Vietnam?

Based on Article 10 of the Law on Value-Added Tax 2008 as amended by Clause 4, Article 1 of the Law on Amending the Law on Value-Added Tax 2013, the specific regulations on the tax deduction method are as follows:

- The payable value-added tax according to the deduction method equals the output value-added tax minus the deductible input value-added tax;

- The output value-added tax equals the total value-added tax of goods and services sold as stated on value-added invoices.

- The value-added tax of goods and services sold, as recorded on value-added invoices, is calculated by multiplying the taxable price of goods, services sold by the VAT rate applicable to those goods, services.

- If using a payment receipt indicating the price inclusive of VAT, the output VAT is determined by the payment price minus the taxable price determined under point k, clause 1 of Article 7 of this Law;

- The deductible input VAT equals the total value-added tax stated on value-added invoices for purchased goods, services, and tax payment documents for imported goods that meet the conditions stipulated in Article 12 of this Law.

- The deduction method applies to business establishments that fully comply with accounting, invoice, and document regulations according to legislation on accounting, invoices, and documents, including:

+ Business establishments with annual revenue from goods sales, service provision of one billion Dong or more, excluding business households and individuals;

+ Business establishments voluntarily registering to apply the deduction method, excluding business households and individuals.

What are the regulations on the direct VAT calculation method in Vietnam?

Based on Article 11 of the Law on Value-Added Tax 2008 as amended by Clause 5, Article 1 of the Law on Amending the Law on Value-Added Tax 2013, the specific regulations on the direct VAT calculation method are as follows:

- The payable value-added tax according to the direct method on added value is calculated by multiplying the added value by the VAT rate applicable to trading, crafting of gold, silver, and gemstones.

- The added value of gold, silver, and gemstones is determined by the sale payment price minus the purchase payment price of corresponding gold, silver, and gemstones.

- The payable value-added tax according to the direct method on added value is calculated by a percentage rate multiplied by the revenue applicable as follows:

+ Applicable entities:

++ Enterprises, cooperatives with annual revenue below the revenue threshold of one billion Dong, except in cases of voluntary registration to apply the deduction method stipulated in clause 2, Article 10 of this Law;

++ Business households and individuals;

++ Foreign organizations and individuals conducting business without permanent establishments in Vietnam but have revenues arising in Vietnam and do not fully comply with accounting, invoice, and document regulations, exclude foreign organizations and individuals providing goods, services for petroleum exploration, development, and exploitation activities subject to tax deduction payment by the Vietnamese party;

++ Other economic organizations, except in cases of registration to pay tax via the deduction method stipulated in clause 2, Article 10 of this Law;

+ Percentage rates for calculating value-added tax are stipulated as follows:

++ Distribution, supply of goods: 1%;

++ Services, construction without supply of materials: 5%;

++ Production, transportation, services associated with goods, construction with supply of materials: 3%;

++ Other business activities: 2%.