Vietnam: Guidance on VAT tax deferral from April 08, 2020

Entities specified in Article 2 of Decree No. 41/2020/NĐ-CP of Vietnam’s Government shall be entitled to VAT tax deferral (except VAT paid upon importation of goods), specifically as follows:

1. VAT incurred by the enterprises and organizations mentioned in Article 2 of this Decree during March, April, May, June of 2020 (for taxpayers declaring tax monthly), first and second quarter of 2020 (for taxpayers declaring tax quarterly) may be deferred for 05 months from the deadlines for VAT payment prescribed by tax administration laws.

In case a taxpayer makes a revision to the tax declaration that results in an increase in the VAT payable and submit the revised tax declaration to the tax authority by the deadline, the VAT amount eligible for deferral will include the increase in VAT payable.

Enterprises and organizations eligible for tax deferral shall submit their monthly or quarterly VAT declarations in accordance with applicable laws and may postpone payment of the VAT declared. Deferred deadlines:

- Deadline for payment of VAT incurred in March 2020 is deferred to September 20, 2020.

- Deadline for payment of VAT incurred in April 2020 is deferred to October 20, 2020.

- Deadline for payment of VAT incurred in May 2020 is deferred to November 20, 2020.

- Deadline for payment of VAT incurred in June 2020 is deferred to December 20, 2020.

- Deadline for payment of VAT incurred in the first quarter of 2020 is deferred to September 30, 2020.

- Deadline for payment of VAT incurred in the second quarter of 2020 is deferred to December 30, 2020.

2. In case an enterprise or organization mentioned in Article 2 of this Decree has a branch or affiliated unit that declares VAT separately to its supervisory tax authority, the branch or unit is also eligible for VAT deferral. The branches and units of the enterprises and organizations mentioned in Clause 1, Clause 2 and Clause 3 Article 2 of this Decree shall not be eligible for VAT deferral if none of their economic sectors or business lines is eligible for deferral.

Deferral procedures are specified in Article 3 of Decree No. 41/2020/NĐ-CP of Vietnam’s Government, effective from April 08, 2020.

Le Hai

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