Deadline extension for monthly and quarterly VAT payment for enterprises and organizations

Illustrative photo

This Draft is expected to extend the deadline for paying value-added tax (VAT) for the VAT amounts arising payable in March, April, May, and June 2020 (monthly VAT declaration) and the deadline for paying VAT for the VAT amounts arising payable in Quarter I and Quarter II of 2020 (quarterly VAT declaration) for the following enterprises and organizations:

1. Enterprises, organizations, individuals, groups of individuals, and households engaged in production activities in the following economic sectors:

- Agriculture, forestry, and fisheries;

- Production and processing of food; Textile; Manufacture of garments; Manufacture of footwear; Manufacture of rubber products; Manufacture of electronic products, computers; Manufacture and assembly of automobiles (except for the production and assembly of automobiles with 09 seats or fewer).

2. Enterprises, organizations, individuals, groups of individuals, and households engaged in business activities in the following economic sectors:

- Rail transport; Road transport; Water transport; Air transport; Warehousing and support activities for transportation;

- Accommodation services, food, and beverage services;

- Activities of travel agencies, tour operators, and supporting services, related to promotion and organization of tours.

3. Small and micro enterprises as defined in the Law on Support of Small and Medium-Sized Enterprises 2017 and Decree 39/2018/ND-CP elaborating some articles of the Law on Support of Small and Medium-Sized Enterprises.

According to the Draft, the deadlines for paying monthly and quarterly VAT are extended as follows:

- The deadline for paying VAT of March 2020 is no later than September 20, 2020;

- The deadline for paying VAT of April 2020 is no later than October 20, 2020;

- The deadline for paying VAT of May 2020 is no later than November 20, 2020;

- The deadline for paying VAT of June 2020 is no later than December 20, 2020;

- The deadline for paying VAT of Quarter I of 2020 is no later than September 30, 2020;

- The deadline for paying VAT of Quarter II of 2020 is no later than December 30, 2020.

In case the aforementioned enterprises and organizations have branches or dependent units in provinces other than where the enterprise's head office is located (excluding units with construction, installation, and out-of-province sales activities temporarily calculating VAT at a rate of 1%, 2%), which separately declare VAT with the tax authorities directly managing these branches or dependent units, then these branches and dependent units are also subject to the extended VAT deadline if they are engaged in production and business activities in the economic sectors eligible for the extension.

See detailed contents of the Draft Decree on Extension of Tax and Land Rent Payments HERE.

Nguyen Trinh

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE