Is Value-Added Tax declared monthly in Vietnam?

Are goods used for consumption in Vietnam subject to VAT?

According to the provisions of Article 3 of the Law on Value-Added Tax 2008, the subjects subject to tax are regulated as follows:

- Goods and services used for production, business, and consumption in Vietnam are subject to value-added tax, except for the subjects specified in Article 5 of the Law on Value-Added Tax 2008.

Therefore, under the above regulation, goods used for consumption in Vietnam are one of the subjects that will be subject to VAT.

Is Value-Added Tax declared monthly in Vietnam?

Based on Clause 1, Article 8 of Decree 126/2020/ND-CP, it is stipulated as follows:

Types of taxes declared monthly, quarterly, annually, for each time the tax obligation arises, and finalization tax declaration

1. Types of taxes and other revenue related to the state budget managed by the tax authority are declared monthly, including:

a) Value-added tax, personal income tax. In case taxpayers meet criteria regulated in Article 9 of this Decree, they can choose to declare quarterly.

b) Special consumption tax.

c) Environmental protection tax.

d) Resource tax, except for resource tax specified in point e of this Clause.

...

Thus, it can be seen that value-added tax is one of the types of taxes declared monthly.

Additionally, based on Article 44 of the Law on Tax Administration 2019, it notes the deadlines for submitting tax declarations as follows:

- The deadline for submitting tax declaration dossiers for taxes declared monthly and quarterly is regulated as follows:

+ No later than the 20th day of the month following the month in which the tax obligation arises for monthly declaration and payment;

+ No later than the last day of the first month of the subsequent quarter in which the tax obligation arises for quarterly declaration and payment.

- The deadline for submitting tax declaration dossiers for taxes calculated annually is regulated as follows:

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

+ No later than the last day of the fourth month from the end of the calendar year for personal income tax finalization dossiers for individuals directly finalizing taxes;

+ No later than December 15 of the preceding year for fixed tax declaration dossiers of business households, individuals paying taxes by the fixed method; in case business households or individuals start a new business, the deadline for submitting fixed tax declaration dossiers is no later than 10 days from the date of commencement of business.

- The deadline for submitting tax declaration dossiers for taxes declared and paid each time a tax obligation arises is no later than the 10th day from the date the tax obligation arises.

- The deadline for submitting tax declaration dossiers in the event of business closure, contract termination or business reorganization is no later than the 45th day from the date the event occurs.

- If taxpayers declare taxes electronically on the last day of the deadline for submitting tax declaration dossiers and the tax authority's electronic portal encounters a technical issue, taxpayers may submit tax declaration dossiers and electronic tax payment documents on the day following the resolution of the issue.

Is Value-Added Tax declared monthly in Vietnam? (Image from the Internet)

What are the fines for late submission of VAT tax returns in Vietnam?

Under the provisions of Article 13 of Decree 125/2020/ND-CP, late submission of tax declaration dossiers will be fined as follows:

(1) A warning for the act of submitting tax declaration dossiers later than the deadline from 01 to 05 days and with mitigating circumstances.

(2) A fine ranging from 2,000,000 VND to 5,000,000 VND for the act of submitting tax declaration dossiers later than the deadline from 01 to 30 days, except as provided in Clause 1, Article 13 of Decree 125/2020/ND-CP.

(3) A fine ranging from 5,000,000 VND to 8,000,000 VND for the act of submitting tax declaration dossiers later than the deadline from 31 to 60 days.

(4) A fine ranging from 8,000,000 VND to 15,000,000 VND for the following actions:

- Submitting tax declaration dossiers later than the deadline from 61 to 90 days;

- Submitting tax declaration dossiers later than the deadline from 91 days or more but not incurring payable tax amounts;

- Not submitting tax declaration dossiers but not incurring payable tax amounts;

- Not submitting annexes as prescribed on tax management for enterprises with transactions requiring tax annexes alongside corporate income tax declarations.

(5) A fine ranging from 15,000,000 VND to 25,000,000 VND for the act of submitting tax declaration dossiers more than 90 days past the deadline, with payable tax amounts incurred and the taxpayer having fully paid the tax amount and late payment interest to the state budget before the tax authority announces the decision to inspect and audit taxes or before the tax authority issues a report on the act of late submission according to the provisions of Clause 11, Article 143 of the Law on Tax Administration 2019.

Moreover, according to the provisions of Clause 6, Article 13 of Decree 125/2020/ND-CP, the measures to remedy the consequences of late submission of tax returns are as follows:

- The taxpayer must pay the full amount of late tax payment to the state budget for violations under Clauses 1, 2, 3, 4, and 5, Article 13 of Decree 125/2020/ND-CP in cases where late submission of tax declaration dossiers leads to late tax payments;

- The taxpayer must submit tax declaration dossiers and annexes for actions prescribed at points c, d of Clause 4, Article 13 of Decree 125/2020/ND-CP.

Thus, depending on how long the submission of VAT tax returns exceeds the stipulated time, different administrative fines apply. The fines range from a minimum of 2,000,000 VND to 25,000,000 VND.

*Note: The monetary fines above apply to organizations; fines for individuals are half of those for organizations. For taxpayers who are households or business households, fines are applied as per individuals.