Understanding how to pay penalties for late filing of VAT tax returns is a crucial skill for any accountant to promptly address errors. Late filing not only results in financial losses through penalties but also negatively impacts the taxpayer's credibility with the tax authorities.
Late filing of tax returns is a common procedural violation. Understanding how to pay penalties for late VAT tax returns is crucial. Decree 125/2020/ND-CP And the 2019 Tax Administration Law will help businesses proactively address the consequences, minimize aggravating circumstances, and ensure transparency in their records.
Which entities are subject to Value Added Tax (VAT)?
Before learning how to pay penalties for late filing of VAT returns, businesses need to clearly define their position in the supply chain. VAT It is an indirect tax, levied on the added value of goods and services generated during the production, distribution, and consumption process.
According to Article 3 of the 2008 Value Added Tax Law, the taxable objects are goods and services used for production, business, and consumption in Vietnam. Except for the list of tax-exempt items in Article 5, most commercial transactions give rise to the obligation to declare taxes periodically.
Deadline for submitting VAT tax returns as stipulated by current law.
To avoid worrying about how to pay penalties for late filing of VAT returns, accountants need to remember the deadlines according to Article 44 of the 2019 Tax Administration Law. Depending on the scale of revenue in the previous year, businesses will file returns monthly or quarterly.
Below is a summary table of deadlines for filing VAT returns for the 2025 tax year (to be implemented in 2026), helping businesses avoid unnecessary penalties for late filing of VAT returns:
| Type of declaration | The latest deadline for submitting applications. | Specific example (Settlement period 2025) |
| Monthly declaration | 20th of the following month | The December 2025 tax return must be submitted no later than January 20, 2026. |
| Quarterly declaration | Last day of the first month of the next quarter | The Q4/2025 tax return must be submitted no later than January 31, 2026. |
| Annual declaration | The last day of the first month of the following year | The 2025 tax return must be submitted before January 31, 2026. |
| Annual settlement | The last day of the third month of the following year | Tax returns for 2025 must be submitted before March 31, 2026. |
The most detailed guide on how to calculate late payment penalties for VAT.
Businesses are often concerned about how to calculate late payment penalties for VAT when they pay later than the stipulated deadline. This is a daily accrued interest that businesses are obligated to pay to the state budget in addition to administrative fines.
According to the Tax Administration Law No. 38/2019/QH14, the current method for calculating late payment penalties for Value Added Tax (VAT) is applied as follows:
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Late payment penalty = Amount of tax overdue x 0.03% x Number of days overdue |
The number of days of late payment is calculated continuously from the day following the tax payment deadline to the date the money is paid into the budget. Understanding how to calculate late payment penalties for VAT helps accountants estimate costs and explain errors to management in a timely manner.
Here's an example illustrating how to calculate late payment penalties for VAT:
Suppose Company A pays VAT of VND 100,000,000 for the 2025 tax year, with a payment deadline of March 31, 2026 (according to the annual tax settlement deadline). However, the company only makes the payment on April 10, 2026.
- Number of days overdue: 10 days (calculated from April 1st to April 10th).
- Applying the method for calculating late payment penalties for VAT: 100,000,000 x 0.03% x 10 = 300,000 VND.
How to pay penalties for late filing of VAT tax returns: Administrative penalty levels
You need to compare the delay time with the tax schedule in Article 13 of Decree 125/2020/ND-CP. The method of paying the penalty for late submission of VAT tax returns depends entirely on the number of days overdue as stated in the violation report.
The penalty is a warning and a fine of less than 5 million VND.
The penalty for late submission of VAT tax returns for minor offenses is a warning if the delay is 1-5 days and there are mitigating circumstances. If the delay is 1-30 days (without mitigating circumstances), the penalty ranges from 2,000,000 to 5,000,000 VND.
The penalty for being overdue by 31 to 90 days is as follows:
When the delay in filing is prolonged, the penalty for late filing of VAT returns becomes more expensive. A delay of 31-60 days incurs a penalty of 5,000,000 to 8,000,000 VND. A delay of 61-90 days incurs a penalty of 8,000,000 to 15,000,000 VND.
Summary table of penalties for late submission of VAT tax returns.
Accountants determine how to pay penalties for late filing of VAT returns based on the following quick lookup table:
| Number of days overdue | Fine amount (VND) | Note |
| 1-5 days | Warning | There are mitigating circumstances. |
| 1-30 days | 2.000.000 – 5.000.000 | Most popular |
| 31-60 days | 5.000.000 – 8.000.000 | – |
| 61-90 days | 8.000.000 – 15.000.000 | – |
| Over 90 days | 15.000.000 – 25.000.000 | All taxes and late payment interest must be paid. |
The actual process for paying penalties for late filing of VAT tax returns.
Businesses can pay penalties for late filing of VAT returns through the following steps:
- Step 1: Submit the overdue declaration form to the system immediately to finalize the number of days in violation.
- Step 2: Receive the penalty notice and decision from the tax authority.
- Step 3: Pay the fine and apply the late payment penalty for VAT to pay interest of 0.03%/day into sub-item 4254.
Accompanying remedial measures
In addition to paying penalties for late filing of VAT returns, businesses are required to pay the full principal amount of tax. Voluntarily applying the method of calculating late VAT payments before an inspection helps reduce the risk of having invoices seized or operations suspended.
Some important notes to avoid errors when filling out the form.
Using services from MAN – Master Accountant Network helps you control deadlines and avoid the hassle of figuring out how to calculate late VAT payment penalties. Experts will review the data, ensuring the accuracy of the tax return and its submission on time.
Conclude
Understanding how to pay penalties for late filing of VAT returns and how to calculate these penalties is essential knowledge for accountants. Even a one-day delay can result in heavy penalties and damage a company's reputation with the General Department of Taxation.
Paying penalties for late filing of VAT returns is no longer a worry with MAN – Master Accountant Network by your side. We provide auditing services, tax accounting, tax consulting and tax settlement Professional. MAN is committed to helping you optimize processes and minimize deadline errors.
Service contact information at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
Frequently Asked Questions about how to pay penalties for late filing of VAT tax returns
If the deadline falls on a holiday, the submission deadline will be extended to the next working day. The start date for late payment penalties will also be moved back accordingly.
Businesses are exempt from taxes in cases of natural disasters, fires, unexpected accidents, or force majeure events, as stipulated in the Law on Tax Administration. Does the method for calculating late payment penalties for VAT change if it falls on a holiday?
Is it possible to be exempt from late payment penalties for taxes?
