What criteria must an enterprise meet to declare VAT quarterly in Vietnam?
What criteria must an enterprise meet to declare VAT quarterly in Vietnam?
Based on Point a, Clause 1, Article 9 of Decree 126/2020/ND-CP which provides for the criteria for quarterly tax declaration for VAT as follows:
Criteria for quarterly tax declaration for value-added tax and personal income tax
- Criteria for quarterly tax declaration
a) Quarterly VAT declaration applies to:
a.1) Taxpayers subject to monthly VAT declaration as stipulated at Point a, Clause 1, Article 8 of this Decree, if their total revenue from selling goods and providing services in the preceding year does not exceed 50 billion VND, are eligible to declare VAT quarterly. Revenue from selling goods and providing services is determined as the total revenue on VAT returns for tax periods in the calendar year.
In cases where the taxpayer declares tax centrally at the headquarters for dependent units or business locations, the revenue from selling goods and providing services includes the revenue of the dependent units and business locations.
a.2) In the case of taxpayers who have just started their business operations, they are allowed to choose to declare VAT quarterly. After operating for 12 months, from the following calendar year, they will base the tax declaration on the revenue of the preceding full 12 months calendar year to declare VAT monthly or quarterly.
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Thus, to declare VAT quarterly, an enterprise must meet the following conditions:
- Total revenue from selling goods and providing services in the preceding year must not exceed 50 billion VND.
- A newly established enterprise is allowed to choose to declare VAT quarterly.
However, after operating for 12 full months, from the following calendar year, the basis will be the revenue from the preceding full 12 months of the calendar year to declare VAT monthly or quarterly.
Note:
- Revenue from selling goods and providing services is determined as the total revenue on VAT returns for tax periods within the calendar year.
- In cases where the taxpayer declares tax centrally at the headquarters for dependent units or business locations, the revenue from selling goods and providing services includes the revenue of the dependent units and business locations.
What criteria must an enterprise meet to declare VAT quarterly in Vietnam? (Image from the Internet)
When is the deadline for submitting VAT returns quarterly in Vietnam?
According to Point b, Clause 1, Article 44 of the Law on Tax Administration 2019 which regulates the deadline for submitting VAT returns as follows:
Deadline for submitting tax returns
- The deadline for submitting tax returns for types of taxes declared monthly or quarterly is as follows:
a) No later than the 20th day of the month following the month in which the tax arises for monthly declarations and payments;
b) No later than the last day of the first month of the quarter following the one in which the tax arises for quarterly declarations and payments.
- The deadline for submitting tax returns for types of 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 year or fiscal year for annual tax finalization returns; no later than the last day of the first month of the calendar year or fiscal year for annual tax returns;
b) No later than the last day of the fourth month from the end of the calendar year for personal income tax finalization returns filed by individuals directly finalizing tax;
c) No later than December 15 of the preceding year for the presumptive tax declaration of business households and individuals paying tax by the presumptive method; in cases where a business household or individual starts a new business, the deadline for submitting the presumptive tax declaration is no later than 10 days from the start of the business.
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Thus, the deadline for submitting VAT returns quarterly is no later than the last day of the first month of the quarter following the one in which the tax obligation arises.
How many methods are available for enterprises to submit VAT returns quarterly in Vietnam?
Based on Clause 1, Article 48 of the Law on Tax Administration 2019 which states:
Responsibilities of the tax administration agency in receiving tax returns
- The tax administration agency receives taxpayers' tax returns through the following methods:
a) Direct receipt at the tax administration agency;
b) Receipt via postal service;
c) Electronic receipt via the electronic portal of the tax administration agency.
- Upon receiving tax returns, the tax administration agency must notify the taxpayer of the receipt of the tax returns; if the returns are illegal, incomplete, or incorrect in form, they must notify the taxpayer within 3 working days from the date of receipt.
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According to the above regulations, enterprises can submit quarterly VAT returns through the following 3 methods:
- Direct submission at the tax administration agency;
- Submission via postal service;
- Electronic submission via the electronic portal of the tax administration agency.
