What are the procedures for VAT declaration for the deduction method for production and business activities in Vietnam?
- What are the procedures for VAT declaration for the deduction method for production and business activities in Vietnam?
- What are the VAT declaration dossiers for the deduction method for production and business activities in Vietnam?
- Which agency is responsible for handling VAT declaration procedures for the deduction method for production and business activities in Vietnam?
What are the procedures for VAT declaration for the deduction method for production and business activities in Vietnam?
Pursuant to subsection 1, Section II, Part 1, Administrative procedures promulgated together with Decision No. 1462/QD-BTC in 2022 guiding the implementation of VAT declaration procedures for the deduction method for production and business activities as follows:
Step 1: Taxpayers who apply the VAT calculation method according to the deduction method according to the provisions of the VAT law make a tax declaration dossier and send it to the tax authority by the 20th day of the month following the month in which the tax liability arises (in case of monthly VAT declaration and payment); no later than the last day of the first month of the quarter following the quarter in which the tax liability arises (in the case of quarterly VAT declaration and payment); no later than the 10th day from the date of arising of the tax obligation (applicable only to the case of VAT declaration and payment according to the declaration form No. 05/GTGT according to the time of arising).
In case taxpayers submit documents via electronic transactions: Taxpayers access the electronic portal selected by the taxpayer (the website of the General Department of Taxation/The portal of a competent state agency includes:
National public service portal, ministerial-level public service portal, provincial-level public service portal according to regulations on implementation of one-stop, one-stop-shop mechanism in handling administrative procedures and have been connected to the website of the Government. The General Department of Taxation (hereinafter referred to as the web portal of the competent state agency)/the portal of the T-VAN service provider) to declare tax declaration dossiers and attached appendices regulations in electronic form (if any), electronically signed and sent to the tax authority via the portal selected by the taxpayer.
Step 2: The tax authority receives:
- In case the dossier is submitted directly at the tax office or sent by post: the tax authority shall receive the dossier as prescribed.
- In case the dossier is submitted through an electronic transaction, the receipt, examination, acceptance and settlement of the dossier shall be through the electronic data processing system of the tax authority:
+ Receipt of dossiers: The website of the General Department of Taxation sends notices of receipt of taxpayers' submission of dossiers or reasons for not receiving dossiers to taxpayers through the portal that taxpayers choose to prepare and send dossiers to (the portal of the General Department of Taxation/the portal of a competent state agency or a T-VAN service provider) no later than 15 minutes after receiving the taxpayer's electronic tax return.
+ Checking and processing dossiers: Tax authorities shall examine and process taxpayers' tax declaration dossiers:
++ The tax authority sends a notice of acceptance/disapproval of the dossier to the portal that taxpayers choose to make and submit the dossier (Portal of the General Department of Taxation / Portal of a competent state agency or T-VAN service provider) within 01 working day from the date indicated on the notice of receipt and submission of electronic tax declaration dossiers.
What are the procedures for VAT declaration for the deduction method for production and business activities in Vietnam?
What are the VAT declaration dossiers for the deduction method for production and business activities in Vietnam?
Pursuant to the list of tax declaration dossiers in Appendix I issued together with Decision No. 1462/QD-BTC and Appendix II issued together with Circular No. 80/2021/TT-BTC. Specific VAT declaration dossiers are as follows:
(1) For taxpayers with electricity production activities:
- VAT declaration form No. 01/GTGT;
- In case the taxpayer is a hydroelectricity production establishment with hydroelectric power plants located in the same province, an appendix of the table of distribution of payable VAT amounts for hydroelectricity production activities shall be submitted, form No. 01- 2/GTGT.
(2) For taxpayers with electronic lottery business:
- VAT declaration form No. 01/GTGT;
- Appendix table of distribution of payable VAT amounts for computerized lottery business, form No. 01-3/GTGT (if any).
(3) For taxpayers being telecommunications enterprises with dependent accounting branches in provinces other than where the enterprise's head office is located:
- VAT declaration form No. 01/GTGT;
- In case taxpayers have postpaid telecommunications services, they must submit an Appendix to the table of payable VAT distribution (except for hydroelectricity production, computerized lottery business) form No. 01-6/GTGT.
(4) For taxpayers with dependent units, the place of business is a production establishment different from the province where the taxpayer is headquartered:
- VAT declaration form No. 01/GTGT;
- Appendix to the table of distribution of payable VAT (except for hydroelectricity production, computerized lottery business) form No. 01-6/GTGT.
(5) For taxpayers who only have normal production and business activities that do not fall into the above cases:
- VAT declaration form No. 01/GTGT.
(6) For taxpayers who are subject to VAT by the deduction method and have real estate transfer activities in a province other than the province or centrally run city where the taxpayer's head office is located (except for real estate transfer activities of infrastructure investment projects, houses for transfer as prescribed at Point b, Clause 1, Article 11 of Decree No. 126/2020/ND-CP):
- Tax declaration dossiers include: VAT declaration form No. 05/GTGT;
- Taxpayers must sum up the VAT-exclusive revenue from real estate transfer in the tax declaration dossier at the head office to determine the payable tax amount for the entire production and business activities at the head office. The amount of value added tax paid in the province where the real estate is transferred is offset against the value added tax payable at the head office.
(7) For taxpayers subject to VAT by the deduction method who are construction contractors (main contractors, sub-contractors), signing contracts (contract annexes) directly with investors to execute construction works (construction activities in accordance with the law on the system of national economic branches and specialized laws) in an area different from the province or centrally run city where the taxpayer's head office is located (including works, construction work items related to many provinces):
- Tax declaration dossiers include: VAT declaration form No. 05/GTGT;
- Taxpayers must sum up the VAT-exclusive revenue from construction activities in the tax declaration dossiers at the head office to determine the tax payable for the entire production and business activities at the head office. The amount of value added tax already paid in the province where the construction work is located shall be offset against the value added tax payable at the head office.
Which agency is responsible for handling VAT declaration procedures for the deduction method for production and business activities in Vietnam?
Pursuant to subsection 1, Section II, Part 1, Administrative procedures promulgated together with Decision No. 1462/QD-BTC in 2022 stipulating as follows:
- For taxpayers with electricity production activities: the Department of Taxation/Department of Taxation directly manages or the Department of Taxation/Department of Taxation where the power plant is located in a province other than where the taxpayer is located (according to decentralization of the local Tax Department).
- For taxpayers conducting electronic lottery business: the Department of Taxation/Department of Taxation directly manages it.
- For taxpayers being telecommunications enterprises with dependent accounting branches in provinces other than where the enterprise's head office is located: the Department of Taxation/Sub-Department of Taxation directly manages it.
- For taxpayers with dependent units, the business location is a production establishment different from the province where the taxpayer's head office is located: the Department of Taxation/Department of Taxation under direct management.
- For taxpayers who only have normal production and business activities that do not fall into the above cases: the Department of Taxation/Department of Taxation directly manages it.
- For taxpayers who are subject to VAT by the deduction method and have real estate transfer activities in a province other than the province or centrally run city where the taxpayer's head office is located (including real estate transfer activities of infrastructure investment projects, houses for transfer as prescribed at Point b, Clause 1, Article 11 of Decree No. 126/2020/ND-CP):
Tax Department/Tax Sub-department where the transferred real estate is located (as decentralized by the local Tax Department).
- For taxpayers subject to VAT by the deduction method who are construction contractors (main contractors, sub-contractors), signing contracts (contract annexes) directly with the investor for construction works (construction activities according to the provisions of law on the system of national economic branches and regulations of specialized law) in an area different from the province or city directly under the central government from where the taxpayer pays head office (including works, construction work items related to many provinces):
Department of Taxation/Sub-department of Taxation where the construction works are located (as decentralized by the local Tax Department).
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