What is the deadline for submitting the VAT declaration in Vietnam for February 2025?

What is the deadline for submitting the VAT declaration in Vietnam for February 2025?

Based on Clause 1, Article 44 of the Law on Tax Administration 2019 regarding the deadline 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 regulated as follows:

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

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

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Accordingly, the deadline for submitting the monthly VAT declaration is no later than the 20th of the month following the month in which the tax obligation arises.

Therefore, the deadline for submitting the VAT declaration for February 2025 is no later than Thursday, March 20, 2025.

What is the deadline for submitting the VAT declaration in Vietnam for February 2025? (Image from the Internet)

When is the VAT declaration submitted monthly in Vietnam?

Based on point a, clause 1, Article 8 of Decree 126/2020/ND-CP it is regulated as follows:

Types of taxes declared monthly, quarterly, annually, upon each occurrence of tax obligation, and tax finalization

1. Types of taxes and other revenues under the state budget managed by the tax management agency and subject to monthly declaration include:

a) Value-added tax, personal income tax. In cases where taxpayers meet the criteria stipulated in Article 9 of this Decree, they may choose to declare quarterly.

b) Special consumption tax.

c) Environmental protection tax.

d) Natural resources tax, except for natural resources tax stipulated in point e of this clause.

dd) Fees and charges under the state budget (except for fees and charges collected by Vietnamese representative missions abroad as regulated in Article 12 of this Decree; customs fees; fees for goods, baggage, and transit vehicles).

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Referring to the regulation to point a, clause 1, Article 9 of Decree 126/2020/ND-CP which states:

Criteria for quarterly tax declaration for value-added tax and personal income tax

1. Criteria for quarterly tax declaration

a) Quarterly declaration applies to:

a.1) Taxpayers subject to monthly declaration of value-added tax as specified in point a, clause 1, Article 8 of this Decree if their total revenue from the sale of goods and provision of services in the preceding calendar year does not exceed 50 billion VND, they may declare value-added tax quarterly. Revenue from the sale of goods and provision of services is determined as the total revenue on the value-added tax declarations of tax periods within the calendar year.

In cases where taxpayers conduct centralized tax declaration at the headquarters for dependent units, business locations, revenue from sales of goods, and provision of services include the revenue of dependent units and business locations.

a.2) New taxpayers who begin operations may choose to declare VAT quarterly. After completing 12 months of business operations, from the subsequent calendar year, the declaration period of the preceding full calendar year will be used to determine whether to declare VAT monthly or quarterly.

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Thus, typically, VAT taxpayers must submit VAT declarations monthly unless they meet the criteria below to choose to declare and submit VAT declarations quarterly:

- If the total revenue from the sale of goods and the provision of services in the preceding calendar year does not exceed 50 billion VND.

- For new business operations, after completing 12 months, from the subsequent calendar year, the revenue from the preceding full calendar year will determine whether VAT is declared monthly or quarterly.

What is the penalty for late submission of the VAT declaration in Vietnam for February?

According to Article 13 of Decree 125/2020/ND-CP regarding penalties for late submission of the VAT declaration for February are as follows:

(1) A warning penalty is applied for submitting the VAT declaration past the deadline from 01 to 05 days with mitigating circumstances.

(2) A fine from 2,000,000 VND to 5,000,000 VND is imposed for submitting the VAT declaration past the deadline from 01 to 30 days, except cases specified in clause 1, Article 13 of Decree 125/2020/ND-CP

(3) A fine from 5,000,000 VND to 8,000,000 VND is imposed for submitting the VAT declaration past the deadline from 31 to 60 days.

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

- Submitting the VAT declaration past the deadline from 61 to 90 days;

- Submitting the VAT declaration past the deadline from 91 days or more but no tax liability arises;

- Failing to submit the VAT declaration without any tax liability arising;

(5) A fine from 15,000,000 VND to 25,000,000 VND is imposed for submitting the VAT declaration past the deadline over 90 days from the deadline, where tax liability arises, and the taxpayer has fully paid the tax and late payment into the state budget before the tax agency announces the tax inspection or before the tax agency records the act of late submission of the tax declaration as regulated in clause 11, Article 143 of the Law on Tax Administration 2019.

In cases where the penalty applied according to this clause exceeds the tax liability on the tax declaration, the maximum penalty for this case is equal to the tax liability to be paid on the tax declaration, but not less than the average level of the monetary penalty framework regulated in clause 4, Article 13 of Decree 125/2020/ND-CP.

Moreover, individuals committing such violations must undertake remedial measures:

- Be compelled to pay the late payment into the state budget for violations specified in clauses 1, 2, 3, 4, and 5 of Article 13 of Decree 125/2020/ND-CP if the taxpayer's late submission of VAT declaration results in late payment;

- Be compelled to submit the tax declaration dossier and attachments to the tax declaration dossier for acts specified in points c, d clause 4 of Article 13 of Decree 125/2020/ND-CP

Note: The above penalties for late submission of the VAT declaration apply to violations conducted by organizations. For individuals with the same violation, the fine is 1/2 of the fine for organizations (pursuant to clause 5, Article 5 of Decree 125/2020/ND-CP).