Is there a proposal on VAT deferral in Vietnam for 2025? What is the latest deadline for submitting the first quarter 2025 VAT return in Vietnam?
Is there a proposal on VAT deferral in Vietnam for the year 2025?
The Ministry of Finance is seeking public opinion on the draft Decree on deferral of value-added tax, corporate income tax, personal income tax, and land rent in the year 2025 (hereafter referred to as the draft Decree on VAT, CIT, PIT, and land rent in 2025).
>> See details Draft Decree on VAT, CIT, PIT, and land rent in 2025...HERE.
In Clause 1, Article 4 of the Draft Decree, it is proposed to extend the deadline for VAT payment for the year 2025 as follows:
For value-added tax (excluding import VAT)
- The payment deadline for VAT payable (including taxes allocated to other provincial-level localities where taxpayers have their headquarters and taxes paid per occurrence) for the tax period from February to June 2025 (for those declaring VAT monthly) and for the first quarter of 2025, second quarter of 2025 (for those declaring quarterly) of enterprises and organizations eligible for extension as specified in Article 3 of the Decree.
The extension period will be six months for VAT of February, March 2025, and the first quarter of 2025; five months for VAT of April, May, June 2025, and the second quarter of 2025. The extension period mentioned here is calculated from the expiration date of the VAT payment deadline under the law on tax administration.
Enterprises and organizations eligible for the extension must file monthly or quarterly VAT returns according to current law but are not required to pay the VAT amounts arising from the filed VAT returns. The extended VAT payment deadlines are as follows:
The deadline for VAT payment for February 2025 is no later than September 20, 2025.
The deadline for VAT payment for March 2025 is no later than October 20, 2025.
The deadline for VAT payment for April 2025 is no later than October 20, 2025.
The deadline for VAT payment for May 2025 is no later than November 20, 2025.
The deadline for VAT payment for June 2025 is no later than December 20, 2025.
The deadline for VAT payment for the first quarter of 2025 is no later than October 31, 2025.
The deadline for VAT payment for the second quarter of 2025 is no later than December 31, 2025.
- In cases where enterprises and organizations mentioned in Article 3 of the Decree have branches and dependent units which file VAT separately with their directly managing tax authorities, these branches and units are also eligible for VAT filing extensions.
In cases where the branches and dependent units of enterprises and organizations mentioned in Clauses 1, 2, and 3 of Article 3 of the Decree do not engage in production or business activities in the economic sectors subject to the extension, the branches and dependent units are not eligible for VAT filing extensions.
Is there a proposal on VAT deferral in Vietnam for 2025? (Image from the Internet)
What is the latest deadline for submitting the first quarter 2025 VAT return in Vietnam?
According to Clause 1, Article 44 Tax Administration Law 2019, the deadline for VAT return filing is stipulated as follows:
Deadline for tax return filing
- The deadline for filing tax returns for taxes declared monthly or quarterly is as follows:
a) No later than the 20th day of the following month for monthly declarations;
b) No later than the last day of the first month of the following quarter for quarterly declarations.
...
Based on the above regulation, the deadline for first quarter 2025 tax filing will be the last day of the first month of the second quarter 2025, which is April 30, 2025.
Additionally, according to Article 86 Circular 80/2021/TT-BTC, the regulation is as follows:
Deadlines for submission of tax dossiers and tax payments
The deadline for tax dossier submission is stipulated in Clauses 1, 2, 3, 4, 5 of Article 44 of the Tax Administration Law and Article 10 of Decree No. 126/2020/ND-CP. The deadline for tax payments follows Clauses 1, 2, 3 of Article 55 of the Tax Administration Law and Article 18 of Decree No. 126/2020/ND-CP. Should the deadline for tax return filing or tax payment coincide with a holiday, it will be the next working day according to the Civil Code.
Since April 30, 2025, and May 1, 2025, are public holidays as per Notice 6150/TB-BLDTBXH 2024 (holidays from April 30 to May 1, 2025, for officials and public employees from April 30, 2025, to May 04, 2025 (Wednesday to Sunday), totaling five consecutive days),
Thus, the tax filing deadline for the first quarter of 2025 will be postponed to the next working day, which is May 5, 2025.
Note: For electronic tax dossier submissions and payments, taxpayers can conduct these electronic tax transactions 24 hours a day (from 00:00:00 to 23:59:59) and seven days a week, including on weekends, holidays, and Tet, as per point a, Clause 1, Article 8 Circular 19/2021/TT-BTC.
What is the penalty for late submission of the first quarter 2025 VAT return in Vietnam?
According to Article 13 Decree 125/2020/ND-CP regarding penalties for late submission of the first quarter VAT return:
(1) A warning will be issued for late submission of VAT returns from 1 to 5 days with mitigating circumstances.
(2) A fine ranging from VND 2,000,000 to VND 5,000,000 for late submission of VAT returns from 1 to 30 days, excluding cases specified in Clause 1, Article 13 Decree 125/2020/ND-CP.
(3) A fine ranging from VND 5,000,000 to VND 8,000,000 for late submission of VAT returns from 31 to 60 days.
(4) A fine ranging from VND 8,000,000 to VND 15,000,000 for the following violations:
- Late submission of VAT returns from 61 to 90 days;
- Late submission of VAT returns from 91 days onwards with no tax payable;
- No submission of VAT returns when no tax is payable;
(5) A fine ranging from VND 15,000,000 to VND 25,000,000 for late submission of tax returns over 90 days past the deadline, with taxes payable, when the taxpayer has fully paid the tax and late payment charge before the tax authorities announce the tax audit or inspection decision or before the tax authorities record the violation as per Clause 11, Article 143 Tax Administration Law 2019.
If the fine calculated based on this clause is higher than the tax payable in the tax return, the maximum fine will be equal to the tax payable but not lower than the average level of fines specified in Clause 4, Article 13 Decree 125/2020/ND-CP.
Furthermore, individuals who commit the specified violations must undertake the following corrective measures:
- Pay the full amount of tax late payment charges into the state budget for violations specified in Clauses 1, 2, 3, 4, and 5, Article 13 Decree 125/2020/ND-CP in cases where late submission of VAT returns leads to delayed tax payments;
- File tax returns and appendixes for violations specified in points c, d, Clause 4, Article 13 Decree 125/2020/ND-CP.
Note: The penalty for late submission of PIT returns applies to corporate violations. For individuals with similar violations, the penalty is half that of corporations (as per Clause 5, Article 5 Decree 125/2020/ND-CP).
