What are the penalties for late submission of the VAT tax declaration in Vietnam for November 2024?

What are the penalties for late submission of the VAT tax declaration in Vietnam for November 2024?

In accordance with Article 13 of Decree 125/2020/ND-CP, penalties for violations related to the deadline for submission of tax declaration dossiers are stipulated as follows:

- A warning is issued for submitting the tax declaration dossier late from 01 to 05 days with mitigating circumstances.

- A fine from VND 2,000,000 to VND 5,000,000 is imposed for submitting the tax declaration dossier late from 01 to 30 days, except for cases specified in Clause 1 of this Article.

- A fine from VND 5,000,000 to VND 8,000,000 is imposed for submitting the tax declaration dossier late from 31 to 60 days.

- A fine from VND 8,000,000 to VND 15,000,000 is imposed for any of the following acts:

- Submitting the tax declaration dossier late from 61 to 90 days;

- Submitting the tax declaration dossier late over 91 days without incurring any payable tax;

- Failing to submit the tax declaration dossier without incurring any payable tax;

- Failing to submit annexes as required for tax management of enterprises with related party transactions accompanying the corporate income tax finalization dossier.

- A fine from VND 15,000,000 to VND 25,000,000 is imposed for submitting the tax declaration dossier more than 90 days past the deadline, incurring payable tax, and if the taxpayer has paid the tax and late payment interest to the state budget before the tax authority announces the inspection or audit decision or before the tax authority prepares the record of late submission of tax declaration as specified in Clause 11, Article 143 of the Law on Tax Administration.

Note: For the same administrative tax and invoice violation, the fine for an organization is twice the fine for an individual.

What are the penalties for late submission of the VAT tax declaration in Vietnam for November 2024? (Image from the Internet)

How to extend the deadline for submitting VAT in Vietnam?

According to Clause 1, Article 4 of Decree 64/2024/ND-CP, specifics are provided as follows:

- For value-added tax (excluding VAT on imports):

+ An extension is provided for VAT due (including tax allocated to provincial localities other than where the taxpayer's head office is located, and tax paid per occurrence) of the tax periods from May to September 2024 (for monthly VAT declaration) and the second quarter of 2024 and third quarter of 2024 (for quarterly VAT declaration) for businesses and organizations mentioned in Article 3 of this Decree. The extension period is 5 months for the VAT of May 2024, June 2024, and the second quarter of 2024, 4 months for VAT of July 2024, 3 months for VAT of August 2024, 2 months for VAT of September 2024, and the third quarter of 2024. The extension time commences from the end of the deadline for VAT payment as prescribed by tax management law.

- Enterprises and organizations eligible for the extension submit monthly and quarterly VAT returns as required by current law, but they are not required to pay the VAT arising on the declared VAT returns. The extended VAT payment deadlines are as follows:

+ The deadline for VAT payment for the tax period of May 2024 is by November 20, 2024.

+ The deadline for VAT payment for the tax period of June 2024 is by December 20, 2024.

+ The deadline for VAT payment for the tax period of July 2024 is by December 20, 2024.

+ The deadline for VAT payment for the tax period of August 2024 is by December 20, 2024.

+ The deadline for VAT payment for the tax period of September 2024 is by December 20, 2024.

+ The deadline for VAT payment for the tax period of Q2, 2024 is by December 31, 2024.

+ The deadline for VAT payment for the tax period of Q3, 2024 is by December 31, 2024.

- In cases where enterprises and organizations stated in Article 3 of Decree 64/2024/ND-CP have branches or affiliated units that declare VAT separately with the tax authorities directly managing these branches or units, such branches or units are also eligible for the VAT payment extension.

- In cases where branches or units of enterprises and organizations mentioned in Clauses 1, 2, and 3 of Article 3 of Decree 64/2024/ND-CP do not engage in business activities in sectors eligible for extension, those branches and units are not eligible for the VAT payment extension.

Who is the VAT taxpayer in Vietnam?

According to Article 4 of the Law on Value Added Tax 2008, the specifics are as follows:

VAT taxpayers are organizations and individuals that produce or trade goods and services subject to VAT (hereinafter referred to as business establishments) and organizations and individuals that import goods subject to VAT (hereinafter referred to as importers).