Shall enterprises with revenue under 50 billion VND declare VAT monthly in Vietnam?
Shall enterprises with revenue under 50 billion VND declare VAT monthly in Vietnam?
Pursuant to Article 9 of Decree 126/2020/ND-CP which provides as follows:
Criteria for quarterly tax declaration for value-added tax and personal income tax
- Criteria for quarterly tax declaration
a) Quarterly value-added tax declaration applies to:
a.1) Taxpayers subject to monthly value-added tax declaration as stipulated in point a, clause 1, Article 8 of this Decree, if having a total revenue from the sale of goods and provision of services for the previous year not exceeding 50 billion VND, may declare value-added tax quarterly. Revenue from the sale of goods and provision of services is determined as the total revenue on value-added tax declarations in the calendar year's tax periods.
In cases where taxpayers undertake centralized tax declaration at the headquarters for dependent units, business locations, the revenue from selling goods and services includes the revenue of these dependent units and business locations.
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- Taxpayers are responsible for self-determining if they fall under the category for quarterly tax declaration to carry out tax declaration as prescribed.
a) Taxpayers meeting criteria for quarterly declaration may choose stable monthly or quarterly tax declarations for the entire calendar year.
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According to the above regulation, enterprises with revenue under 50 billion fall under the category for quarterly VAT declaration. However, such enterprises can choose to declare VAT on a monthly or quarterly basis stably for the entire calendar year.
Therefore, enterprises with revenue under 50 billion VND can declare VAT monthly if they choose the monthly declaration form.
Shall enterprises with revenue under 50 billion VND declare VAT monthly in Vietnam? (Image from the Internet)
What types of taxes and fees are declared monthly in Vietnam?
Pursuant to clause 1, Article 8 of Decree 126/2020/ND-CP which regulates types of taxes and fees declared monthly as follows:
- Value-added tax, personal income tax. In cases where taxpayers meet criteria as prescribed in Article 9 of Decree 126/2020/ND-CP, they may choose to declare quarterly.
- Special consumption tax.
- Environmental protection tax.
- Resource tax.
- Fees and charges under the state budget (except fees, charges collected by representative bodies of the Socialist Republic of Vietnam abroad as stipulated in Article 12 of Decree 126/2020/ND-CP; customs fees; charges on goods, luggage, transit vehicles).
- For the exploitation and export sale of natural gas: resource tax; corporate income tax; special tax for the Vietnam-Russia Joint Venture “Vietsovpetro” at Lot 09.1 under the Agreement between the Government of Vietnam and the Government of the Russian Federation signed on December 27, 2010, on ongoing cooperation in geological exploration and oil extraction on the continental shelf of Vietnam within the framework of the Vietnam-Russia Joint Venture “Vietsovpetro” (hereinafter referred to as Vietsovpetro Joint Venture at Lot 09.1); host country’s share of gas profits.
When is the deadline for submitting a monthly tax declaration dossier in Vietnam?
Pursuant to clause 1, Article 44 of Law on Tax Administration 2019 which regulates the submission deadline for tax declaration dossiers as follows:
Deadline for submission of tax declaration dossiers
- The deadline for the submission of tax declaration dossiers for types of taxes declared monthly or quarterly is prescribed as follows:
a) No later than the 20th day of the following month from the month in which the tax obligation arises for monthly declarations and payments;
b) No later than the last day of the first month of the subsequent quarter from the quarter in which the tax obligation arises for quarterly declarations and payments.
- The deadline for submission of tax declaration dossiers for taxes with an annual tax period is as follows:
a) No later than the last day of the 3rd month since 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;
b) No later than the last day of the 4th month since the end of the calendar year for personal income tax finalization dossiers for individuals directly finalizing tax;
c) No later than December 15 of the preceding year for the presumptive tax declaration dossiers of business households and individuals paying tax under the presumptive method; in case of new business activities, the deadline for submission is no later than 10 days from the start of business activities.
- The deadline for the submission of tax declaration dossiers for taxes declared and paid following each incidence of tax obligation is no later than the 10th day since the tax obligation arises.
- The deadline for the submission of tax declaration dossiers in cases of cessation of operation, termination of contracts, or reorganization of enterprises is no later than the 45th day since the occurrence of the event.
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Hence, the deadline for submitting monthly tax declaration dossiers is no later than the 20th day of the following month in which the tax obligation arises.
