Oct. 17 – Pursuant to the prevailing regulation on Vietnamese tax management, the taxpayer must submit monthly valued-added tax (VAT) returns and settle tax payments on or before the 20th day of the following month in localities where they conduct production or business. Furthermore, in specific situations, business establishments that pay VAT according to the credit method are entitled to a tax refund. This article will examine the filing, payment and refund of VAT in Vietnam.
Tax Filing and Payment
For companies adopting the direct method of VAT calculation, the tax finalization must be made no later than the 90th day from the end of calendar year. Payment has to be made in Vietnamese dong (VND) directly to the State Treasury in cash or through the taxpayer’s bank account.
Taxpayers that declare and pay VAT using the credit method, and have dependant accounting production establishments (including processing and assembling establishments) located in provinces or cities other than the locality where they are headquartered, shall pay VAT both in localities where their production establishments are based and where they are headquartered.
Dependent accounting production establishments that conduct cost-accounting activities following the Vietnam Accounting Standard should register for tax payment using the credit method in localities where they conduct production activities. They should use value-added invoices as a basis for tax declaration and payments in these localities when delivering their semi-finished or finished products to other establishments, including their headquarters.
