What is Sub-entry 4931? When is the time to determine late submission of VAT return in Vietnam?

Vietnam: What is Sub-entry 4931?

According to point b paragraph 1 Article 4 of Circular 324/2016/TT-BTC, the sub-entry (also known as economic content code - NDKT) is a detailed classification of the entry, used to classify detailed state budget revenues and expenditures according to the management objects in each entry.

Based on Appendix 3 List of sub-entries issued together with Circular 324/2016/TT-BTC supplemented by Paragraph 5 Article 1 of Circular 93/2019/TT-BTC, Sub-entry 4931 is regulated as follows:

Thus, Sub-entry 4931 is a sub-entry code for Late payment interest on value-added tax from other remaining domestic business production goods.

What is Sub-entry 4931? When is the time to determine late submission of VAT return ? (Image from the Internet)

When is the time to determine late submission of VAT return in Vietnam?

According to the provisions in Article 44 of the Law on Tax Administration 2019 and Article 55 of the Law on Tax Administration 2019, the regulations are as follows:

Article 44. Deadline for submission of tax returns

1. The deadline for submission of tax returns for taxes filed monthly, quarterly is regulated as follows:

a) No later than the 20th day of the month following the month of tax liability for monthly filing and payment;

b) No later than the last day of the first month of the quarter following the quarter of tax liability for quarterly filing and payment.

Article 55. Tax payment deadlines

1. For taxpayers who calculate their own taxes, the deadline for paying taxes is the last day of the deadline for submission of tax returns. For supplementary tax returns, the deadline for paying taxes is the deadline for submission of tax returns of the tax assessment period containing errors.

For corporate income tax, it is temporarily paid quarterly, and the deadline for paying taxes is the 30th day of the first month of the next quarter.

For crude oil, the deadline for paying resource tax and corporate income tax per oil sale is 35 days from the date of sale for domestically sold oil or from the date of customs clearance for exported oil as per customs law.

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

2. For tax calculated by the tax authority, the deadline for paying taxes is the time stated in the tax authority's notification.

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The deadlines for VAT payment and VAT return submission are determined as follows:

- The 20th day of the month following the month of tax liability for monthly filing and payment.

- The last day of the first month of the quarter following the quarter of tax liability for quarterly filing and payment.

Thus, the time to determine late submission of VAT return is after the last day of the first month of the quarter following the quarter of tax liability.

Example:

Company A has a VAT tax period for the first quarter of 2024 (from January 1, 2024, to March 31, 2024). The deadline for paying VAT for the first quarter of 2024 is April 30, 2024.

Company A pays taxes on May 7, 2024, which is considered late submission of VAT return payment.

When is the taxpayer exempted from late tax payment interest in Vietnam?

According to paragraph 5 Article 59 of the Law on Tax Administration 2019, it is regulated as follows:

Handling of late tax payment

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5. No late payment interest is calculated in the following cases:

a) Taxpayers providing goods and services paid from the state budget, including subcontractors stipulated in contracts with investors and directly paid by investors but have not been paid, are exempted from late payment interest.

The tax debt exempted from late payment interest is the total tax debt owed by the taxpayer to the state budget but not exceeding the unpaid amount from the state budget;

b) Cases regulated at point b paragraph 4 Article 55 of this Law shall not be calculated late payment interest during the period of awaiting analysis, inspection results; in the period when official prices are not yet available; during the period of unconfirmed actual payment amounts, adjustments added to customs value.

Thus, taxpayers are exempted from late tax payment interest in the following cases:

- Taxpayers providing goods and services paid from the state budget, including subcontractors stipulated in contracts with investors and directly paid by investors but have not been paid, are exempted from late payment interest.

The amount of tax debt exempted from late payment interest is the total tax debt owed by the taxpayer to the state budget but not exceeding the unpaid amount from the state budget;

- Cases regulated at point b paragraph 4 Article 55 of this Law shall not calculate late payment interest during the period of awaiting analysis, inspection results; in the period when official prices are not yet available; during the period of unconfirmed actual payment amounts, adjustments added to customs value.