What is the penalty for late submission of the VAT return in Vietnam for the period of September 2024?

What is the penalty for late submission of the VAT return in Vietnam for the period of September 2024?

According to Article 13 of Decree 125/2020/ND-CP, penalties for late submission of VAT returns are stipulated as follows:

- A warning penalty is imposed for submitting tax declaration files late by 01 to 05 days with mitigating circumstances.

- A fine ranging from 2,000,000 VND to 5,000,000 VND is imposed for submitting tax declaration files late by 01 to 30 days, except in the case specified in clause 1 of this Article.

- A fine ranging from 5,000,000 VND to 8,000,000 VND is imposed for submitting tax declaration files late by 31 to 60 days after the prescribed period.

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

+ Submitting tax declaration files late by 61 to 90 days after the prescribed period;

+ Submitting tax declaration files late for over 91 days but no tax liability arises;

+ Not submitting tax declaration files but no tax liability arises;

+ Failing to submit appendices as required for managing tax for businesses with related-party transactions accompanying corporate income tax finalization files.

- A fine ranging from 15,000,000 VND to 25,000,000 VND is imposed for submitting tax declaration files late by over 90 days from the deadline for submission, with tax liability arising, and the taxpayer has fully paid the tax amount and late payment interest to the state budget before the tax authority issues a tax inspection or audit decision or before the tax authority records the act of late submission according to clause 11 of Article 143 of the Tax Administration Law 2019.

In cases where the fine calculated according to this clause is greater than the tax amount generated on the tax declaration file, the maximum fine for this case is equivalent to the tax amount generated on the tax declaration file but not less than the average level of the fine bracket stipulated in clause 4 of this Article.

Note: The aforementioned fine levels apply to organizations. The fine level for individuals committing the same violation is double the fine for organizations based on clause 5 of Article 5 of Decree 125/2020/ND-CP.

What is the penalty for late submission of the VAT return in Vietnam for the period of September 2024? (Image from the Internet)

When is late payment interest on administrative tax violation penalties not calculated?

Based on clause 2 of Article 42 of Decree 125/2020/ND-CP (amended and supplemented by clause 5 of Article 1 of Decree 102/2021/ND-CP) regulations on late payment interest are as follows:

Late Payment Interest on Administrative Tax and Invoice Violations

1. Calculation of Late Payment Interest

a) Organizations or individuals who delay in paying fines for administrative violations on taxes or invoices shall incur late payment interest at a rate of 0.05% per day on the overdue fine amount.

b) The number of days liable for late payment interest includes holidays, weekends according to regulatory policies, and is calculated from the day following the deadline for fine payment until the day before the organization or individual pays the fine into the state budget.

2. Late payment interest is not calculated in the following cases:

a) During the period of deferred execution of the fine decision;

b) During the period of consideration and decision on fine reduction or exemption;

c) The fine has not yet reached the due date in cases where fine payment is allowed in installments.

...

Thus, according to the aforementioned regulations, organizations or individuals who delay in paying fines for administrative tax violations will not incur late payment interest when falling under the following cases:

- During the period of deferred execution of the fine decision.

- During the period of consideration and decision on fine reduction or exemption.

- The fine has not yet reached the due date in cases where fine payment is allowed in installments.

What are cases of exceptions to tax-related administrative penalties in Vietnam?

According to clause 3 of Article 9 of Decree 125/2020/ND-CP, cases of exceptions to tax-related administrative penalties are stipulated:

- No administrative tax violation penalties apply in cases where administrative violation penalties do not apply according to the laws on handling administrative violations.

Taxpayers who delay tax procedures electronically due to technical system failures notified on the e-Portal of the tax authority fall under acts of violation due to force majeure events as provided in clause 4 of Article 11 of the Law on Handling Administrative Violations 2012.

- No administrative tax violation penalties or late payment interest is imposed on taxpayers for administrative tax violations due to compliance with written instructions or decisions from tax authorities or competent state agencies related to determining taxpayers' tax obligations (including instructions or decisions issued before this Decree takes effect), except where tax inspections or audits at taxpayers' offices have not detected errors in taxpayers' tax declarations, determinations of tax amounts payable, or tax exemptions, reductions, or refunds but administrative tax violations by taxpayers are later detected.

- No administrative tax violation penalties apply in case of inaccurate declarations, where taxpayers have amended the tax return files and voluntarily fully paid the tax amount before the tax authority announces a tax inspection or audit at the taxpayer's office or before the tax authority detects without inspection or audit at the taxpayer's office or before the competent authority detects.

- No penalty is imposed for tax procedure violations in cases where individuals directly settling personal income tax are late in filing personal income tax finalization returns and have a refundable tax amount; business households or individual businesses have been subject to tax assessment according to Article 51 of the Tax Administration Law 2019.

- No penalties for violations of tax return filing deadlines during the period when taxpayers are granted an extension to file those tax returns.