In the context of globalization and the influx of many foreign businesses into the Vietnamese market, understanding and complying with tax regulations is extremely important. Goods and Services Tax (GST) has become an indispensable part of the tax system of many countries, and Vietnam is no exception. For FDI enterprises in Vietnam, declaring and paying GST correctly not only helps them avoid legal risks but also strengthens their credibility and reputation in the eyes of partners and consumers. The following article will give an overview of the GST Filing Service in Vietnam and why FDI enterprises in Vietnam should use this type of service.
Contents
GST Filing Service in Vietnam
The GST (Goods and Services Tax) is a type of value-added tax (VAT) applied to most goods and services sold for final consumption. In some countries, such as Vietnam, GST is also referred to as VAT.
Declaring GST is a process in which taxable entities report and submit forms and relevant tax documents to tax authorities. During this process, entities declare all taxable transactions that occurred during the period, the amount of GST paid on purchases, and the tax collected on sales. This is carried out based on prescribed tax declaration forms, with the taxpayer being responsible for the accuracy of all data on the declaration.
GST Filing Service in Vietnam, especially for FDI companies, typically involve a series of professional activities provided by service companies to assist FDI firms in complying with Vietnamese tax regulations efficiently and on time. This includes collecting, examining invoices, and documents for the business, followed by preparing tax declarations and calculating the tax amount the business needs to pay or be refunded.
Which Business declares taxes? Do FDI businesses need to declare GST ?
Tax Declaration Subjects: All businesses, including FDI enterprises, that are operating in production and business in Vietnam must fulfill their tax declaration obligations. They can do this either monthly or quarterly.
Newly Established Businesses
When starting out, businesses have the option to declare GST taxes quarterly. However, after 12 months of operation, from the subsequent calendar year, tax declarations will be based on the revenue of the previous year (full 12 months) to determine if they should declare monthly or quarterly.
Businesses Currently Operating
If a business declares GST monthly and their total revenue from sales of goods and services from the previous year is 50 billion VND or less, they are eligible to declare GST quarterly. To determine this revenue:
- The total revenue is calculated based on the GST tax declarations for the tax periods within the year.
- If a business declares taxes centrally at their main headquarters for dependent units, the revenue must include the revenue of these units as well.
Conclusion: Whether a domestic enterprise or an FDI, complying with tax obligations is mandatory. FDI businesses should understand and adhere to the regulations to ensure effective and legal business operations in Vietnam.
Reasons Why FDI Enterprises Need GST Filing Service in Vietnam
Characteristics of FDI Enterprises
The largest barrier for FDI enterprises operating in Vietnam isn’t language, but cultural and legal barriers. FDI enterprises typically come from countries with a legal system and business culture different from Vietnam. This often makes adapting to the business environment in Vietnam challenging.
Even though English is a common language in international transactions, many tax documents and forms in Vietnam are still prepared in Vietnamese. Additionally, reporting requirements also add pressure for these businesses, especially when they have to adhere to reporting standards both in their home country and in Vietnam, increasing the workload and complexity.
Legal and Financial Risks of Non-compliance
Not complying with tax regulations can lead FDI enterprises in Vietnam to many serious legal and financial risks. First, failure to declare or false declaration can lead to heavy fines and even revocation of the business license. This violation can also affect the reputation and image of the business in the market, losing trust from customers and partners.
Financially, having to pay unreported taxes, along with interest and fines, can exert significant financial strain on a business, impacting liquidity and operational efficiency. Moreover, frequent inspections and audits from tax authorities not only consume time and resources but also create many managerial and operational inconveniences.
Opportunity for Cost Optimization and Maximizing Business Benefits
Utilizing professional GST Filing Service in Vietnam not only helps FDI enterprises mitigate legal risks but also provides opportunities to optimize costs and maximize business benefits. In fact, a thorough understanding of the tax system and knowing how to flexibly apply regulations can result in significant tax savings for a company. This helps alleviate financial burdens and enhances a business’s competitive edge in the market.
Moreover, leveraging the expertise and experience of tax declaration service professionals can help businesses take advantage of tax incentives, financial support, or preferential policies that the Vietnamese government offers to FDI enterprises. This not only helps reduce costs but also facilitates business expansion. Furthermore, mitigating legal risks allows companies to focus better on their core activities, optimizing business efficiency. Legal peace of mind assists business leaders in making more informed investment decisions. Thereby maximizing benefits and value for shareholders.
Outstanding Advantages of GST Filing Service in Vietnam
✅ High Quality and Accuracy
One of the most notable benefits businesses receive when utilizing GST Filing Service in Vietnam from professional companies is high quality and accuracy. These professional companies typically have teams of experienced consultants who are formally trained and regularly updated on changes in tax law. With their comprehensive understanding of tax regulations and declaration practices, they can ensure a high level of accuracy and compliance, helping businesses avoid errors that waste time and money. This not only aids businesses in better complying with legal regulations but also facilitates more efficient and transparent financial management.
✅ Cost Optimization and Time-saving
Utilizing GST Filing Service in Vietnam from expert teams offers businesses the advantage of cost optimization and time-saving. In a competitive business environment, every expense must be carefully considered. Entrusting tax declaration tasks to experts helps businesses avoid the costs of training, recruiting, and maintaining an in-house accounting team.
Moreover, with the support of knowledgeable individuals, complicated issues during the tax declaration process can be quickly resolved. Additionally, by focusing on core business activities rather than worrying about tax matters, businesses can rapidly respond to market demands, optimize operational processes, and enhance productivity. The outcome is that businesses can maximize their resources, save costs and time, and generate optimal value in the market.
✅ Consultation Support and Addressing Emerging Issues
When using GST Filing Service in Vietnam from professional companies, businesses not only receive support in performing tax operations accurately and legally but also benefit from in-depth consultancy services and swift resolutions to emerging problems. Tax experts often have broad knowledge of tax regulations and extensive experience in dealing with complex situations.
Should any questions or issues related to taxes arise, businesses can quickly receive answers and appropriate solutions. This not only helps businesses avoid risks of penalties due to regulatory breaches but also enables them to operate smoothly, without interruptions from emerging issues. With professional support, businesses can be confident that all tax-related aspects are managed efficiently and accurately.
NN Consulting: GST Filing service in Vietnam
Outsourcing GST Filing Service in Vietnam is becoming a popular trend and the top choice for many Foreign businesses. Alongside this trend is the rapid increase of providers offering this service in the market. Given this situation, many FDI companies often face challenges in selecting a reputable and quality service partner.
To help businesses reduce risk, save time, and resources in searching for a reliable partner, we are proud to introduce NN Consulting. One of the leading brands in Vietnam in the field of providing professional GST Filing Service in Vietnam specifically for FDI companies.
| ⭐⭐ GST Filing Service in Vietnam | Bookkeeping Service, Payroll Service, VAT Filling Service, Tax Declaration Service, PIT Return for Foreigners, Expat, Resident and Non-Resident Service |
| ⭐⭐ Hotline | +84 924453930 |
| ⭐⭐ Benefits | Professionalism and Experience, Time Saving, Cost Optimization |
| ⭐⭐ Advantages | Service: Efficient, Fast, Optimized |
| ⭐⭐ Commitment | Compliance with the Law, Professional Process, Help Business Save Time and Expense |
We takes pride in its long-standing reputation and experience in this sector, having been, and continues to be, the trusted partner for numerous large FDI companies from countries such as Japan, South Korea, China, America, etc. At NN Consulting, the trust and satisfaction of our clients are not only our top priorities but also our motivation. This drives us to continuously improve the quality and perfection of every service we provide.
⭐ GST Filing Service in Vietnam Deployment
1. Collecting Invoices and Documents:
- Coordinate with the accounting department or finance division to obtain a list of invoices and documents for the period.
- Check the completeness and validity of the invoices and documents (dates, amounts, signatures, red stamps, etc.).
- Organize the invoices and documents chronologically or by transaction content.
2. Filing Tax Declaration:
Identify the revenues and expenses for the period to prepare the tax declaration.
- Fill in the tax declaration form as prescribed.
- Reconcile the information on the tax declaration with the accounting records.
3. Calculating GST:
Compile revenues and expenses related to GST for the period.
- Apply the appropriate tax rate to calculate input and output GST.
- Determine the amount of GST to be paid or refunded by the tax authority.
4. In-depth Tax Consultation:
- Consult on new regulations related to personal income tax (PIT) and corporate income tax (CIT).
- Provide advice on taxable and non-taxable income items.
- Guide on how to complete personal income tax declarations.
- Support tax calculations based on company profits.
5. Carrying out Tax Refund Procedures (if applicable):
- Check the necessary conditions to proceed with the tax refund procedure.
- Prepare a tax refund application, including related invoices and documents.
- Submit the application to the tax authority and monitor the processing progress.
- Receive the refunded tax amount and record it in the accounting books.
⭐ Why Choose NN Consulting
NN Consulting GST Filing service in Vietnam not only meets all quality requirements but also offers numerous superior benefits for businesses:
- Professional and Accurate: With a team of skilled and extensively experienced staff, NNC ensures accurate and correct tax declarations. Which helps businesses avoid unwanted legal risks.
- Reputable and Experienced: NNC has collaborated with many FDI businesses in Vietnam and is known as one of the leading entities in this field. Our reputation is built on trust, quality, and customer satisfaction.
- Time and Cost Saving: GST Filing service in Vietnam relieves businesses of legal and financial burdens. NNC helps optimize costs for businesses through effective tax solution consultations.
- In-depth Consultation: Beyond the primary service, we also offer detailed advice on issues related to salaries, taxes, and legal regulations. This ensures businesses are always updated and in compliance.
- Quick Support: With a professional customer support system, any questions or arising issues are addressed promptly and effectively.
- Assistance with Tax Refund Procedures: If businesses are entitled to tax refunds, NNC will accompany them from document preparation to resolving any emerging issues.
- Flexible Service: Whether a small, medium, or large enterprise, NNC offers flexible service packages tailored to specific needs.
Choosing NN Consulting means you’ve chosen a trustworthy partner, ready to assist anytime, anywhere, helping businesses overcome challenges related to payroll and human resource management.
