What is the deadline for submitting the VAT declaration for June 2024 in Vietnam?
What is Value Added Tax?
According to the provisions of Article 2 of the Value Added Tax Law 2008, the definition of VAT is stated as follows:
Value Added Tax
Value Added Tax (VAT) is the tax calculated on the added value of goods and services arising during the process from production, circulation to consumption.
Value Added Tax is the tax calculated on the added value of goods and services arising during 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 Tax Administration Law 2019 stipulates the deadlines for tax declaration submission as follows:
Deadlines for Tax Declaration Submission
- The submission deadlines for tax declarations for monthly and quarterly taxes are stipulated as follows:
a) No later than the 20th day of the following month for monthly tax declaration and payment;
b) No later than the last day of the first month of the following quarter for quarterly tax declaration and payment.
- The submission deadlines for tax declarations for annually calculated taxes are stipulated as follows:
a) No later than the last day of the third month from the end of the calendar year or fiscal year for the annual tax finalization declaration; no later than the last day of the first month of the calendar year or fiscal year for the annual tax declaration;
b) No later than the last day of the fourth month from the end of the calendar year for the personal income tax finalization declaration of individuals who directly finalize taxes;
c) No later than December 15 of the preceding year for the presumption tax declaration of business households and individuals who pay taxes based on presumptive methods; in the case of newly established business households and individuals, the tax declaration deadline is no later than 10 days from the start of business.
- The submission deadlines for tax declarations for taxes declared and paid separately is no later than the 10th day from the tax liability arising date.
Thus, in the case of monthly tax declaration and payment, the deadline for submitting the VAT declaration is no later than the 20th day of the following month from the tax liability arising.
In summary, the deadline for submitting the VAT declaration of June 2024 is July 20, 2024.
For the VAT declaration of July 2024, the deadline is August 20, 2024.
If no tax deduction arises, is tax finalization required in Vietnam?
According to point d.1, Clause 6, Article 8 of Decree 126/2020/ND-CP on types of taxes declared monthly, quarterly, yearly, separately, and on tax finalization, it is regulated as follows:
Types of Taxes Declared Monthly, Quarterly, Yearly, separately, and on Tax Finalization
- Types of taxes and revenues declared annually and finalized up to the point of dissolution, bankruptcy, cessation of activities, termination of contracts or restructuring of enterprises. In the case of corporate transformation (excluding state enterprises being equitized) where the transformed enterprise inherits all tax obligations of the converted enterprise, tax finalization is not required up to the point of decision on transformation, the enterprise finalizes taxes when the year ends. Specifically:
d) Personal income tax for organizations and individuals paying taxable income from wages and salaries; individuals with income from wages and salaries authorize organizations and individuals paying income to finalize taxes on their behalf; individuals with income from wages and salaries directly finalizing taxes with tax authorities. Specifically:
d.1) Organizations and individuals paying income from wages and salaries are responsible for declaring and finalizing taxes on behalf of individuals who have authorized the organization or individual to pay the income, regardless of whether tax deduction arises. In cases where the organization or individual does not incur income payment, personal income tax finalization is not required. In cases where employees are transferred from the old organization to the new one due to mergers, consolidations, divisions, separations, or changes in business type, or if the old and new organizations are within the same system, the new organization is responsible for tax finalization authorized by individuals for both income paid by the old organization and recollecting personal income tax withholding vouchers issued by the old organization (if any).
Thus, even if the company does not incur tax deductions, it still has to finalize taxes.
Which type of tax should be declared VAT separately in Vietnam?
According to Clause 4, Article 8 of Decree 126/2020/ND-CP, the types of taxes declared monthly, quarterly, yearly, separately, and on tax finalization are stipulated as follows:
Types of Taxes Declared Monthly, Quarterly, Yearly, Separately, and on Tax Finalization
- Other taxes and revenues payable to the state budget declared separately include:
a) Value-added tax for taxpayers as stipulated in Clause 3, Article 7 of this Decree or taxpayers who declare VAT using the direct method on added value as stipulated by the VAT law but incur VAT obligations on real estate transfer activities.
b) Special consumption tax for taxpayers who export goods but have not paid the special consumption tax in the manufacturing stage and then do not export but sell domestically. Special consumption tax for businesses buying domestically produced cars, planes, and yachts that are subject to non-imposition of special consumption tax but then change their usage to subjects liable for special consumption tax.
c) Tax on exported and imported goods includes: export tax, import tax, safeguard tax, anti-dumping tax, countervailing tax, special consumption tax, environmental protection tax, VAT. In case exported and imported goods are not declared separately, follow the guidelines of the Ministry of Finance.
d) Resource tax for organizations assigned to sell confiscated resources; irregular resource exploitation licensed by competent state agencies or not requiring licensing under the law.
dd) Value-added tax, corporate income tax not incurred regularly for taxpayers applying the direct method on added value stipulated by the VAT law and the revenue percentage stipulated by the corporate income tax law; except for cases where taxpayers have multiple occasions of tax liability arising within a month, they can declare on a monthly basis.
e) Corporate income tax for real estate transfer activities of taxpayers applying the revenue percentage method as stipulated by the corporate income tax law.
Thus, taxpayers declare VAT separately in cases such as:
- Taxpayers do not need to submit tax declarations or taxpayers who declare VAT using the direct method on added value but have VAT obligations on real estate transfer activities.
- Taxpayers apply the direct method on added value as stipulated by the VAT law and the revenue percentage as stipulated by the corporate income tax law; except for cases where taxpayers have multiple occasions of tax liability arising within a month, they can declare on a monthly basis.
