What are penalties for late submission of VAT returns in Vietnam? What are time limits for submission?

Penalties for late submission of VAT returns in Vietnam

Pursuant to Article 13 of Decree 125/2020/ND-CP regulating penalties for violations regarding the deadline for submitting tax declaration dossiers as follows:

(1) A warning is issued for submitting the tax declaration dossier 1 to 5 days late with mitigating circumstances.

(2) A fine ranging from VND 2,000,000 to VND 5,000,000 is imposed for submitting the tax declaration dossier 1 to 30 days overdue, except for the case specified in Clause 1 of this Article.

(3) A fine ranging from VND 5,000,000 to VND 8,000,000 is imposed for submitting the tax declaration dossier 31 to 60 days overdue.

(4) A fine ranging from VND 8,000,000 to VND 15,000,000 is imposed for any of the following acts:

a) Submitting the tax declaration dossier 61 to 90 days overdue;

b) Submitting the tax declaration dossier 91 days or more overdue without a tax amount payable;

c) Not submitting the tax declaration dossier without a tax amount payable;

d) Not submitting the appendices as per tax management regulations for enterprises with associated transactions along with the corporate income tax finalization dossier.

(5) A fine ranging from VND 15,000,000 to VND 25,000,000 is imposed for submitting the tax declaration dossier over 90 days overdue from the deadline, with a payable tax amount, and the taxpayer has paid the full tax amount and late payment amount into the state budget before the tax authority issues a tax inspection or audit decision or before the tax authority records the violation for late submission of the tax declaration dossier as specified in Clause 11 Article 143 of the 2019 Law on Tax administration.

(6) Measures to remedy consequences:

a) Compulsory payment of the full late tax payment amount into the state budget for violations specified in Clauses 1, 2, 3, 4, and 5 of this Article if the taxpayer's late submission of tax declaration dossiers results in late tax payments;

b) Compulsory submission of the tax declaration dossier and the appendices attached to the tax declaration dossier for violations specified at points c, d Clause 4 of this Article.

Note: The fines mentioned above apply to organizations. Fines for individuals committing the same violations are twice the fines for organizations.

What are penalties for late submission of VAT returns in Vietnam? What are time limits for submission? (Image from the Internet)

What is the deadline for submission of VAT returns in Vietnam?

Pursuant to Article 44 of the 2019 Law on Tax administration regulating the deadlines for submitting tax declaration dossiers as follows:

Deadline for Submitting Tax Declaration Dossiers

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

a) No later than the 20th day of the month following the month in which the tax obligation arises for monthly declarations and submissions;

b) No later than the last day of the first month of the quarter following the quarter in which the tax obligation arises for quarterly declarations and submissions.

2. The deadline for submitting tax declaration dossiers for taxes with an annual tax period is as follows:

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

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

c) No later than December 15 of the preceding year for fixed-tax declaration dossiers of business households and individuals paying taxes by the fixed method; in case business households and individuals commence new businesses, the deadline for submitting the fixed-tax declaration dossier is no later than 10 days from the start of business activities.

...

Thus, the deadlines for submitting VAT returns are as follows:

- No later than the 20th day of the month following the month in which the tax obligation arises for monthly submissions;

- No later than the last day of the first month of the quarter following the quarter in which the tax obligation arises for quarterly submissions.

When shall the deadline for submission of VAT returns be extended in Vietnam?

Pursuant to Article 46 of the 2019 Law on Tax administration regulating as follows:

Extension of Tax Declaration Dossier Submission

1. Taxpayers unable to submit tax declaration dossiers on time due to natural disasters, catastrophes, epidemics, fires, unexpected accidents shall be granted an extension by the head of the directly managing tax authority.

2. The extension shall not exceed 30 days for submitting monthly, quarterly, annual tax declarations, declarations on each arising tax obligation; 60 days for submitting tax finalization dossiers from the deadline for submitting tax declaration dossiers.

3. Taxpayers must send a written request for an extension of submitting the tax declaration dossier to the tax authority before the deadline for submitting tax declaration dossiers, specifying the reason for the extension request with confirmation from the commune-level People's Committee or Police at the place where the circumstance eligible for extension occurs as specified in Clause 1 of this Article.

4. Within 3 working days from the date of receiving the extension request, the tax authority must reply in writing to the taxpayer regarding acceptance or rejection of the extension request.

Taxpayers unable to submit VAT returns on time due to natural disasters, catastrophes, epidemics, fires, or unexpected accidents shall be granted an extension by the head of the directly managing tax authority.

Note: The extension shall not exceed 30 days for submitting monthly, quarterly, annual tax declarations, and declarations on each arising tax obligation; 60 days for submitting tax finalization dossiers from the deadline for submitting tax declaration dossiers.