Which economic sectors are enterprises engaging in manufacturing activities granted an extension of VAT payment deadline in Vietnam for the tax period of August 2024?

Which economic sectors are enterprises engaging in manufacturing activities granted an extension of VAT payment deadline in Vietnam for the tax period of August 2024?

According to Article 3 of Decree 64/2024/ND-CP, enterprises engaging in manufacturing activities in following economic sectors are granted an extension of VAT payment deadline for the tax period of August 2024:

(1) Agriculture, forestry, and fishery;

(2) Production, food processing; textiles; apparel manufacturing; leather production and related products; wood processing and production of wood, bamboo, and rattan products (excluding beds, cabinets, tables, and chairs); production of straw, husk, and woven materials; paper production and paper products; production of rubber and plastic products; production of non-metallic mineral products; metallurgy; mechanical processing; metal treatment and coating; production of electronic products, computers, and optical products; manufacturing of automobiles and other motor vehicles; production of beds, cabinets, tables, and chairs;

(3) Construction;

(4) Publishing activities; cinematographic activities, television program production, audio recording, and music publishing activities;

(5) Crude oil and natural gas extraction (excluding corporate income tax of crude oil, condensate, and natural gas collected under agreements and contracts);

(6) Beverage production; recording and copying all types of records; coke production, refined petroleum products; chemical production and chemical products; production of fabricated metal products (excluding machinery and equipment); motorcycle and motorbike production; repair, maintenance, and installation of machinery and equipment;

(7) Sewerage and waste treatment.

Which enterprises are granted an extension of VAT payment deadline in Vietnam for the tax period of August 2024? (Image from the Internet)

What is the extension period for VAT payment deadline in Vietnam for the tax period of August 2024?

According to Article 4 of Decree 64/2024/ND-CP, the regulation on the extension of value-added tax payment is as follows:

Extension of tax payment and land rent

1. For value-added tax (excluding value-added tax on imports)

a) Extend the payment deadline for value-added tax payable (including tax allocated to other localities where the taxpayer's head office is located, tax payable per occurrence) for the tax periods from May to September 2024 (for monthly value-added tax declarations) and the second quarter of 2024, the third quarter of 2024 (for quarterly value-added tax declarations) of enterprises and organizations specified in Article 3 of this Decree. The extension is 05 months for value-added tax of May 2024, June 2024, and the second quarter of 2024, 04 months for value-added tax of July 2024, 03 months for value-added tax of August 2024, and 02 months for value-added tax of September 2024, and the third quarter of 2024. This extension is calculated from the end of the value-added tax payment deadline under the tax management law.

Enterprises and organizations eligible for the extension shall declare and submit monthly and quarterly value-added tax returns in accordance with the current law but do not have to pay the value-added tax arising on the declared value-added tax returns. The value-added tax payment deadline for the months and quarters is extended as follows:

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The value-added tax payment deadline for the tax period of August 2024 is no later than December 20, 2024.

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For value-added tax (excluding value-added tax on imports), the payment deadline for the tax period of August 2024 is extended for 3 months, with the latest payment date being December 20, 2024.

What are procedures for extension of VAT payment deadline in Vietnam in 2024?

Based on Article 5 of Decree 64/2024/ND-CP, the 5 steps for extending the payment of value-added tax in 2024 are as follows:

Step 1. Taxpayers directly declaring and paying taxes to the tax authority eligible for the extension must submit a Proposal for Extension of Tax Payment (hereinafter referred to as the Proposal for Extension) initially or replace it if errors are found (electronically; submitting a paper form directly to the tax authority or via postal service) to the managing tax authority once for the entire amount of tax incurred during the extended tax periods, along with the time of tax return submission according to monthly (or quarterly) tax return regulations in tax management law.

If the Proposal for Extension is not submitted along with the time of monthly (or quarterly) tax return submission, the latest submission date is September 30, 2024. The tax authority will still process the tax extension for the tax periods incurred before the submission of the Proposal for Extension.

If taxpayers have amounts eligible for extension managed by various tax authorities, the managing tax authority directly responsible for the taxpayer must send information on the Proposal for Extension to the relevant managing tax authorities.

Step 2. Taxpayers must self-determine and be responsible for proposing the extension to ensure the correct eligibility for extension as per Decree 64/2024/ND-CP.

If taxpayers submit the Proposal for Extension to the tax authority after September 30, 2024, they will not be eligible for a tax payment extension according to Decree 64/2024/ND-CP.

If taxpayers amend the tax returns for the extended tax periods, leading to an increase in payable amounts and submit to the tax authority before the extended tax payment deadline, the extended tax amount includes the additional payable amount due to the amendments.

If taxpayers amend the tax returns for the extended tax periods after the extended tax payment deadline, the additional payable amount due to amendments will not be extended.

Step 3. The tax authority does not need to notify the taxpayers about the acceptance of the tax payment extension.

If during the extension period, the tax authority has reasons to determine the taxpayers are not eligible for the extension, the tax authority shall notify the taxpayers in writing about the non-extension, and the taxpayers must fully pay the tax and late payment amount into the state budget within the extended period.

If after the extension period, through inspection or audit, the competent state authority finds that the taxpayers are not eligible for the tax payment extension under Decree 64/2024/ND-CP, the taxpayers must pay the remaining tax amount, fines, and late payment interest into the state budget.

Step 4. Interest on late payment is not calculated for the extended tax amount during the extension period (including cases where the taxpayers send the Proposal for Extension to the tax authority after submitting the tax return as specified in Step 1, and where the competent authority through inspection or audit determines the taxpayers eligible for an extension have an increased payable amount for the extended tax periods).

If the tax authority has calculated interest on late payment (if any) for tax files eligible for an extension under Decree 64/2024/ND-CP, the tax authority will adjust and not calculate the late payment interest.

Step 5. Investors of works and projects funded by the state budget, payments from the state budget for basic construction of projects using ODA funds subject to value-added tax must submit a notice that the tax authority has received the Proposal for Extension or a Proposal for Extension with confirmation that it has been sent to the tax authority by the contractor conducting the project when making payment procedures with the State Treasury.

The State Treasury shall base on the documents submitted by the investor to not deduct value-added tax during the extension period.

Upon the expiration of the extension period, the contractor must fully pay the extended tax amount as regulated.