What is the deadline for submitting the VAT declaration for June 2024 in Vietnam?
What is Value-Added Tax in Vietnam?
Under the provisions in Article 2 of the Law on Value-Added Tax 2008, the definition of VAT is stated as follows:
Value-Added Tax
Value-added tax is a tax imposed on the added value of goods or services arising in the process from production, circulation to consumption.
Value-added tax is a tax imposed on the added value of goods or services arising in the process from production, circulation to consumption.
What is the deadline for submitting the VAT declaration for June 2024 in Vietnam?
Article 44 of the Law on Tax Administration 2019 stipulates the deadline for submitting tax declaration dossiers in Vietnam as follows:
Deadlines for submission of tax declaration dossiers
1. Deadlines for submission of tax declaration dossiers of taxes declared monthly and quarterly:
a) For taxes declared monthly: the 20th of the month succeeding the month in which tax is incurred;
b) For taxes declared quarterly: the last day of the first month of the succeeding quarter.
2. For taxes declared annually:
a) For annual tax statement dossiers: the last day of the 3rd month from the end of the calendar year or fiscal year. For annual tax declaration dossiers: the last day of the first month from the end of the calendar year or fiscal year
b) For annual personal income tax statements prepared by income earners: the last day of the 4th month from the end of the calendar year;
c) For presumptive tax declarations prepared by household businesses and individual businesses: the 15th of December of the preceding year. For new household businesses and individual businesses: within 10 days from the date of commencement of the business.
3. For declaration of taxes that are declared and paid upon incurrence: the 10th day from the day on which tax is incurred.
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Thus, in the case of monthly tax declaration and payment, the deadline for submitting the VAT declaration is no later than the 20th of the month succeeding the month in which tax is incurred.
In summary, the deadline for submitting the VAT declaration for June 2024 is July 20, 2024.
What is the deadline for submitting the VAT declaration for June 2024 in Vietnam? (Image from the Internet)
Is it required to submit a tax finalization declaration if tax is not deducted in Vietnam?
According to point d.1 of sub-point d, clause 6, Article 8 of Decree 126/2020/ND-CP, there are regulations on taxes declared monthly, quarterly, annually, separately; tax finalization in Vietnam as follows:
Taxes declared monthly, quarterly, annually, separately; tax finalization
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6. The following taxes and amounts shall be declared annually and finalized when an enterprise is dissolved, shuts down, terminates a contract or undergoes rearrangement. In case of conversion (except equitized state-owned enterprises) where the enterprise after conversion inherits all tax obligations of the enterprise before conversion, tax shall be finalized at the end of the year instead of the issuance date of the decision on conversion. Tax shall be finalized at the end of the year):...
d) Personal income tax for salary payers; salary earners that authorize salary payers to finalize tax on their behalf; salary earners that finalize tax themselves. To be specific:
d.1) Salary payers shall finalize tax on behalf of authorizing individuals, whether tax is deducted or not. Tax finalization is not required if an individual does not earn any income. In case an employee is re-assigned to a new organization after the old organization is acquired, consolidated, divided or converted, or to a new organization that is in the same system as the old organization, the new organization shall finalize tax as authorized by such employee, including the income paid by the old organization, and collect documents about deduction of personal income tax issued by the old organization to the employee (if any).
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Thus, the company must still submit a tax finalization declaration even if tax is not deducted.
Who is required to separately declare VAT in Vietnam?
According to clause 4, Article 8 of Decree 126/2020/ND-CP, the taxes declared monthly, quarterly, annually, separately; tax finalization in Vietnam are as follows:
Taxes declared monthly, quarterly, annually, separately; tax finalization
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4. The following taxes and other amounts shall be declared separately:
a) VAT payable by taxpayers specified in Clause 3 Article 7 of this Decree or taxpayers that declare VAT directly on added value as prescribed by VAT laws and also incur VAT on real estate transfer.
b) Excise tax incurred by exporters on goods that are sold domestically instead of being exported if excise tax is not paid during manufacture of such goods. Excise tax incurred by business establishments buying domestically manufactured motor vehicles, airplanes, yachts that were originally not subject to excise tax but then repurposed and become subject to excise tax.
c) Tax on exports and imports, including: export duty, import duty, safeguard duty, anti-dumping tax, countervailing duty, excise tax, environment protection tax, VAT. The Ministry of Finance shall specify the cases in which separate declaration of tax on exports and imports is not required.
d) Resource royalty payable by the organization assigned to sell confiscated resources; resource royalty on irregular resource extraction licensed by competent authorities or exempt from licensing as prescribed by law.
dd) Irregular VAT and corporate income tax incurred by payable by taxpayers paying tax directly on value added and revenue as prescribed by VAT and corporate income tax laws. In case these taxes are incurred multiple times within a month, they may be declared monthly.
e) Corporate income tax on real estate transfer incurred by taxpayers paying tax directly on revenue under corporate income tax laws.
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Thus, taxpayers separately declaring VAT include:
- Taxpayers not required to submit tax declaration dossiers or taxpayers that declare VAT directly on added value as prescribed by VAT laws and also incur VAT on real estate transfer.
- Taxpayers paying tax directly on value added and revenue as prescribed by VAT and corporate income tax laws. In case these taxes are incurred multiple times within a month, they may be declared monthly.
Sincerely!
