Extension of the VAT Payment Deadline by 05 Months for Enterprises and Organizations

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To be specific, as per this Draft, the deadline for paying value-added tax incurred in March, April, May, and June 2020 for businesses and organizations listed in Article 1 of the Draft, which are required to declare value-added tax payable monthly, will be extended. Similarly, the deadline for paying value-added tax incurred in the first and second quarters of 2020 for businesses and organizations listed in Article 1 of the Draft, which are required to declare value-added tax payable quarterly, will also be extended.

The extension period is 05 months from the end of the value-added tax payment deadline as regulated by the law on tax administration.

In which, the businesses and organizations eligible for the tax payment extension under Article 1 of this Draft include:

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

- Agriculture, forestry, and fisheries;

- Food production and processing; Textile; Apparel production; Footwear production; Rubber product manufacturing; Electronic product and computer manufacturing; Auto manufacturing and assembly (excluding the manufacturing and assembly of cars with 09 seats or less).

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

- Railway transport; Road transport; Water transport; Air transport; Warehousing and support activities for transport;

- Accommodation, food, and beverage services;

- Activities of travel agencies, tour business, and support services related to advertising and organizing tours.

The above-listed economic sectors are determined according to Decision 27/2018/QD-TTg on the Promulgation of Vietnam's economic sector system.

3. Small and micro enterprises are identified according to the provisions of the Law on Supporting Small and Medium Enterprises 2017 and Decree 39/2018/ND-CP detailing some provisions of the Law on Supporting Small and Medium Enterprises.

The basis for determining the criteria for small and micro enterprises is the capital information, revenue on the Financial Statement, or the number of employees with insurance on December 31, 2019, for businesses established before January 1, 2020, or the capital and labor information on the enterprise registration dossier for businesses established in 2020.

Note, if the taxpayer submits a revised tax declaration that increases the payable VAT amount and the revised declaration is submitted to the tax authority before the extended tax payment deadline, the extended tax amount will include the additional payable tax amount due to the revised declaration.

See detailed contents of the Draft HERE.

Nguyen Trinh

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