Vietnam: What are the deadlines for submitting value-added tax for enterprises after deferral in 2024?

Vietnam: What are the deadlines for submitting value-added tax for enterprises after deferral in 2024?

According to Clause 1, Article 4 of Decree 64/2024/ND-CP, which stipulates the deferral of the payment deadline for value-added tax (excluding VAT at import stage) for enterprises and organizations as follows:

- The tax payment deadline is extended for the value-added tax payable (including tax allocated to other provincial-level localities where the taxpayer has its headquarters, tax paid per occurrence) for the tax period from May to September 2024 (for monthly VAT declaration) and the second quarter of 2024, third quarter of 2024 (for quarterly VAT declaration) of the enterprises and organizations mentioned in Article 3 of this Decree.

The deferral is for 05 months for VAT of May 2024, June 2024, and the second quarter of 2024, an deferral of 04 months for VAT of July 2024, an deferral of 03 months for VAT of August 2024, and an deferral of 02 months for VAT of September 2024 and the third quarter of 2024.

The deferral period at this point is calculated from the end date of the VAT payment deadline as stipulated by the tax management law.

Enterprises and organizations eligible for deferral are required to declare and submit VAT monthly or quarterly returns in accordance with current law but are not yet required to pay the VAT amount arising on the declared VAT returns.

The extended deadlines for VAT payment are as follows:

The deadline for VAT payment of the May 2024 tax period is no later than November 20, 2024.

The deadline for VAT payment of the June 2024 tax period is no later than December 20, 2024.

The deadline for VAT payment of the July 2024 tax period is no later than December 20, 2024.

The deadline for VAT payment of the August 2024 tax period is no later than December 20, 2024.

The deadline for VAT payment of the September 2024 tax period is no later than December 20, 2024.

The deadline for VAT payment of the second quarter 2024 tax period is no later than December 31, 2024.

The deadline for VAT payment of the third quarter 2024 tax period is no later than December 31, 2024.

Note: Decree 64/2024/ND-CP is effective until the end of December 31, 2024.

Vietnam: What are the deadlines for submitting value-added tax for enterprises after deferral in 2024? (Image from the Internet)

What are cases of VAT deferral in Vietnam in 2024?

According to Article 3 of Decree 64/2024/ND-CP, the detailed cases that qualify for an deferral for the 2024 VAT submission deadline include:

[1] Enterprises, organizations, household businesses, and individuals operating in the following economic sectors:

- Agriculture, forestry, and fisheries;

- Production and processing of food; textiles; clothing production; leather production and related products; wood processing and production of products from wood, bamboo, and rattan (excluding beds, cabinets, tables, and chairs); production from straw, straw, and woven materials; paper and paper product manufacturing; production of rubber and plastic products; production of non-metallic mineral products; metal production; metal processing; handling and coating of metals; production of electronic products, computers, and optical products; automobile production and other motor vehicles; production of beds, cabinets, tables, and chairs;

- Construction;

- Publishing activities; film activities, television program production, audio recording, and music publishing;

- Crude oil and natural gas extraction (excludes corporate income tax on crude oil, condensate, natural gas collected under agreements, contracts);

- Beverage production; printing, copying of recorded media; coke production, refined petroleum products; chemical and chemical product manufacturing; production of pre-cast metal products (excluding machinery, equipment); motorcycle production and repair, maintenance, and installation of machinery and equipment;

- Wastewater drainage and treatment.

[2] Enterprises, organizations, household businesses, and individuals engaged in business in the following economic sectors:

- Transportation and warehousing; accommodation and catering services; education and training; health care and social support activities; real estate business;

- Labor and employment services; activities of travel agencies, tour businesses, and support services related to promotion and organization of tours;

- Creative, artistic, and entertainment activities; activities of libraries, archives, museums, and other cultural activities; sports, amusement, and entertainment activities; film screening activities;

- Broadcasting; computer programming, consulting services, and other activities related to computers; information service activities;

- Mining support service activities.

The economic sectors mentioned in Clauses 1 and 2 of Article 3 Decree 64/2024/ND-CP are determined according to Decision 27/2018/QD-TTg in 2018.

The categorization of economic sectors according to Annex I issued with Decision 27/2018/QD-TTg includes 5 levels, and the determination of the economic sector is applied as follows: If the name of the economic sector mentioned in Clauses 1 and 2 of Article 3 Decree 64/2024/ND-CP falls under level 1, then the economic sector applied for the deferral includes all economic sectors under levels 2, 3, 4, and 5 of level 1;

If it falls under level 2, the economic sector applied for the deferral includes all economic sectors under levels 3, 4, and 5 of level 2;

If it falls under level 3, the economic sector applied for the deferral includes all economic sectors under levels 4 and 5 of level 3;

If it falls under level 4, the economic sector applied for the deferral includes all economic sectors under level 5 of level 4.

[3] Enterprises, organizations, household businesses, and individuals producing supporting industrial products prioritized for development; key mechanical products.

Supporting industrial products prioritized for development are determined under Decree 111/2015/ND-CP dated November 3, 2015, of the Government of Vietnam on supporting industry development; key mechanical products are determined according to Decision 319/QD-TTg dated March 15, 2018, of the Prime Minister of the Government of Vietnam approving the Strategy for the development of Vietnam's mechanical engineering industry to 2025, vision to 2035.

[4] Small and micro enterprises are determined according to the Law on Supporting Small and Medium Enterprises in 2017 and Decree 80/2021/ND-CP.

The economic sectors, fields of the enterprise, organization, household business, household, and individual business stipulated in Clauses 1, 2, and 3 of Article 3 Decree 64/2024/ND-CP are sectors, fields where the enterprise, organization, household business, household, and individual business have production, business activities and generate revenue in 2023 or 2024.

What is the procedure for VAT deferral in Vietnam in 2024?

According to Article 5 of Decree 64/2024/ND-CP, the procedure for tax deferral in 2024 is stipulated as follows:

[1] Taxpayers who directly declare and pay taxes with the tax authority and are eligible for deferral submit a Request for deferral of tax and land rent for the first time or as a replacement when errors are detected (electronically; directly submit a paper copy to the tax authority or send it through postal service) using the Form appended to Decree 64/2024/ND-CP to the direct managing tax authority once for all tax and land rent arising in the eligible tax periods along with the time of filing the tax return according to monthly (or quarterly) regulations stipulated by the tax management law.

In the event that the Request for deferral is not submitted concurrently with the filing of the monthly (or quarterly) tax return, the latest submission deadline is September 30, 2024, and the tax authority shall still provide the tax, land rent deferral for arising periods eligible prior to the submission of the Request for deferral.

For taxpayers with deferrals across multiple jurisdictions managed by different tax authorities, the direct managing tax authority is responsible for transmitting the Request for deferral information to the related managing tax authorities.

[2] Taxpayers self-determine and take responsibility for submitting the Request for deferral ensuring eligibility for the deferral under Decree 64/2024/ND-CP. If taxpayers submit the Request for deferral after September 30, 2024, they shall not be eligible for deferral for tax, land rent under this Decree.

In cases where taxpayers resubmit additional tax return documentation for the waived tax period leading to an increased payable amount and submit it to the tax authority before the expiration of the extended tax period, the extended tax amount shall include the additional payable amount due to the supplemental declaration.

If taxpayers resubmit additional tax return documentation for the waived tax period after the expiration of the extended tax period, the additional payable amount resulting from the supplemental declaration shall not be extended.

[3] The tax authority shall not notify taxpayers about accepting the deferral for tax and land rent.

If during the deferral period, the tax authority has grounds to determine the taxpayer is not eligible for an deferral, the tax authority shall issue a written notice to the taxpayer about non-deferral, and the taxpayer shall pay the full extended tax, land rent amount, and late payment interest within the extended period to the state budget.

In case after the expiration of the deferral, through inspection and examination, the competent state authority detects that the taxpayer is not subject to tax, land rent deferral under this Decree, the taxpayer must pay the deficient tax amount, fine, and late payment interest into the state budget.

[4] No late payment interest shall be calculated for the extended tax and land rent amount during the deferral period (including cases where taxpayers submit the Request for deferral to the tax authority after filing the tax return as regulated in Clause 1, Article 5 Decree 64/2024/ND-CP and cases where the competent authority, upon inspection, determines the taxpayer's extended payable amount increases for the eligible tax periods).

In cases where the tax authority has calculated late payment interest (if any) for tax returns subject to deferral under this Decree, the tax authority shall make adjustments not to compute late payment interest.

[5] The investors of works, construction item projects funded by the state budget, payment items from the state budget for construction works of ODA-funded projects subject to VAT when making payment procedures with the State Treasury must attach a notification of the tax authority having received the Request for deferral or a Request for deferral with confirmation of submission to the tax authority of the contractor executing the project.

The State Treasury, based on the documentation provided by the investor, does not perform VAT withholding during the deferral period. At the end of the deferral period, the contractor must pay the full extended VAT amount as stipulated.