Vietnam: What is the deadline for VAT payment for the tax period of September 2024?

Vietnam: What is the deadline for VAT payment for the tax period of September 2024?

According to Article 55 of the Law on Tax Administration 2019, the deadline for VAT payment is prescribed as follows:

Tax Payment Deadline

1. In cases where the taxpayer calculates the tax, the latest deadline for tax payment is the last day of the tax filing deadline. In cases of amending tax filing, the tax payment deadline is the deadline of the tax filing period with errors.

For corporate income tax, it is provisionally paid quarterly, with the latest deadline being the 30th day of the first month of the next quarter.

For crude oil, the deadline for resource tax and corporate income tax per oil shipment sale is 35 days from the date of sale for domestic sales or from the date of customs clearance for exports as per customs law.

For natural gas, the deadline for resource tax and corporate income tax is monthly.

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Article 44, clause 1 of the Law on Tax Administration 2019 prescribes the deadline for tax filing as follows:

Deadline for Tax Filing

1. The deadline for tax filing for monthly or quarterly tax declarations is as follows:

a) No later than the 20th day of the next month for the monthly declaration and payment;

b) No later than the last day of the first month of the next quarter for the quarterly declaration and payment.

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Article 4 of Decree 64/2024/ND-CP sets forth rules on Tax deferral deadlines and land rent:

Tax deferral Deadlines and Land Rent

1. Regarding value-added tax (excluding import VAT)

a) Tax deferral deadlines for VAT payable (including allocated tax amounts in other provincial regions where the taxpayer's headquarters are located, and tax paid per occurrence) from May to September 2024 (for monthly VAT declarations) and for Quarter II and Quarter III 2024 (for quarterly VAT declarations) for enterprises and organizations specified in Article 3 of this Decree. Extensions are 05 months for VAT of May 2024, June 2024, and Quarter II 2024; 04 months for VAT of July 2024; 03 months for VAT of August 2024; and 02 months for VAT of September 2024 and Quarter III 2024. The extension period in this point is calculated from the end of the statutory VAT payment deadline as per tax management laws.

Enterprises and organizations eligible for extensions will submit monthly or quarterly VAT declarations but are not required to pay the declared payable VAT on those declarations within the normal deadlines. The extended VAT payment deadlines are as follows:

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The VAT payment deadline for the month is the last day of the tax filing deadline, meaning the 20th day of the subsequent month for monthly declaration and payment.

However, the VAT payment deadline for the September 2024 period will be extended by 2 months from the end of the VAT payment deadline according to tax management laws as per Decree 64/2024/ND-CP.

Therefore, the latest VAT payment deadline for the September 2024 period will be December 20, 2024.

Note: The VAT payment extension for the September 2024 period only applies to entities specified in Article 3 of Decree 64/2024/ND-CP.

Vietnam: What is the deadline for VAT payment for the tax period of September 2024? (Image from the Internet)

How long may a tax be deferred in Vietnam for September 2024?

Based on Article 62 of the Law on Tax Administration 2019, it is stated as follows:

Tax deferral

1. Tax deferral is considered upon request by the taxpayer in the following cases:

a) Suffering physical damage directly affecting production or business due to force majeure events specified in clause 27, Article 3 of this Law;

b) Ceasing operations due to relocation of the production facility as required by competent authorities, affecting business results.

2. Taxpayers entitled to tax payment extensions as specified in clause 1 of this Article may have all or part of their tax payable deferred.

3. Tax payment extension terms are as follows:

a) Not exceeding 02 years from the tax payment deadline for cases in point a, clause 1 of this Article;

b) Not exceeding 01 year from the tax payment deadline for cases in point b, clause 1 of this Article.

4. Taxpayers are not fined and are not subject to late payment interest on the tax debt during the extension period.

5. The head of the direct tax management agency bases on the tax payment extension dossier to decide the deferred tax amount and the extension period.

As such, taxpayers are entitled to a VAT payment extension for the September 2024 period as follows:

- Not exceeding 02 years from the tax payment deadline for cases suffering physical damage, directly affecting production or business due to force majeure events as follows:

+ Taxpayers suffering physical damage due to natural disasters, calamities, epidemics, fires, unexpected accidents;

+ Other force majeure cases per the Government of Vietnam regulations.

- Not exceeding 01 year from the tax payment deadline for cases of cessation of operation due to relocation of production facilities as required by competent authorities, affecting business results.

How to calculate the late payment interest in Vietnam?

Based on clause 2, Article 59 of the Law on Tax Administration 2019 regarding late payment calculation specifically as follows:

Handling of Late Tax Payment

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2. The late payment interest and the calculation period are defined as follows:

a) Late payment interest is calculated at 0.03% per day on the overdue tax amount;

b) The calculation period for late payment is continuous from the day after the late payment arises as prescribed in clause 1 of this Article to the day immediately preceding the date the tax debt, tax refund retrieval, additional tax, determined tax, and delayed transferred tax are fully paid into the state budget.

The 01-day late payment is calculated as follows:

Late Payment Interest for 01 Day = 0.03% x Overdue Tax Amount