With the strong development of the economy, the Vietnamese market is increasingly attracting more foreign direct investment (FDI) businesses. Therefore, understanding and complying with tax regulations is an important factor to ensure smooth business operations for these businesses. VAT Filing service in Vietnam has become an effective solution for businesses. Especially for FDI enterprises that want to focus on business development without spending too much time fulfilling tax obligations.
Let’s explore with NN Consulting the VAT declaration obligations for FDI enterprises. Why should foreign enterprises utilize the VAT Filing service in Vietnam? All will be answered in the article below.
Contents
VAT Filing service in Vietnam
Value Added Tax (VAT) is a consumption tax based on the added value of goods and services during production, business, and distribution processes. VAT declaration is the process by which tax-paying entities report and submit tax-related forms and documents to tax authorities.
During this process, the entity declares all taxable transactions that occurred during the period, the VAT paid when purchasing goods, and the tax collected when selling goods. This is done based on prescribed tax declaration forms, with the taxpayer responsible for the accuracy of all data on the form.
VAT Filing Service in Vietnam, especially for FDI companies, usually includes a series of professional activities provided by the service company. In order to help FDI companies comply with Vietnam’s tax regulations efficiently and on time. This involves collecting, reviewing invoices and documents for businesses. Then preparing the tax declaration and calculating the tax the business must pay or is refunded.
Who needs to declare VAT tax? Do FDI enterprises need to file VAT declarations?
Subjects of Tax Declaration: All enterprises, including FDI enterprises, operating in production and business in Vietnam must fulfill their tax declaration obligations. Can be monthly or quarterly
New Company
When starting out, enterprises can choose to declare VAT quarterly. However, after 12 months of operation, from the subsequent calendar year, the tax declaration will be based on the revenue of the previous year (full 12 months) to determine whether to declare monthly or quarterly.
Operating enterprises
If an enterprise declares VAT monthly and has a total sales revenue of goods and services for the previous year of less than 50 billion VND, they have the right to declare VAT quarterly. To determine this revenue threshold:
- The total revenue is calculated based on the VAT declarations of the tax periods within the year.
- If the enterprise consolidates tax declarations at its main headquarters for its subsidiary, the revenue should include the revenues of these units.
Conclusion: Whether a domestic enterprise or FDI, complying with tax obligations is mandatory. FDI enterprises should familiarize themselves with and adhere to the correct regulations to ensure efficient and legal business operations in Vietnam.
Why FDI enterprises need VAT Filing Service in Vietnam
Characteristics of FDI enterprises in Vietnam
The largest barrier for FDI enterprises operating in Vietnam is not the language, but cultural and legal barriers. FDI enterprises often come from countries with legal systems and business cultures that differ from Vietnam. This makes adapting to the business environment in Vietnam sometimes challenging.
Although English is a common language in international transactions, many tax documents and forms in Vietnam are still drafted in Vietnamese. Besides, reporting requirements also create additional pressure for these businesses. They often have to comply with requirements both in their home country and in Vietnam. Which increases the workload and complexity.
Legal and financial risks when not complying with regulations
Non-compliance with tax regulations can expose FDI enterprises in Vietnam to serious legal and financial risks. Firstly, failure to declare or incorrect declarations can result in heavy fines and even the revocation of business licenses. Such violations can also impact the reputation and image of the business in the market, losing trust from customers and partners.
Financially, having to pay outstanding taxes, along with interest and penalties, can put significant financial pressure on FDI enterprises. Which affects liquidity and operational efficiency. Frequent audits and controls by tax authorities not only consume time and resources but also create operational inconveniences.
Optimize Costs and Maximize Business Benefits
Utilizing professional VAT Filing service in Vietnam not only helps FDI enterprises minimize legal risks but also opens up opportunities to optimize costs and maximize business benefits. In reality, a clear understanding of the tax system and the ability to apply regulations flexibly can save a significant amount in taxes for the enterprise. This helps reduce financial burdens and enhances the company’s competitiveness in the market.
Moreover, leveraging the expertise and experience of VAT Filing service in Vietnam allows enterprises to benefit from 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, by mitigating legal risks, enterprises can better focus on their core activities, thereby optimizing business efficiency. This allows company leaders to make effective investment decisions, maximizing benefits and value for shareholders.
Benefits of using Professional VAT Filing Service in Vietnam
✅ Excellent Quality and Precision
When utilizing VAT Filing service in Vietnam from specialists, one of the most remarkable benefits that businesses receive is excellent quality. Professional companies often have a team of experienced consultants, are formally trained and regularly updated on changes in tax law. With a profound understanding of tax regulations and tax declaration practices, they can ensure high levels of accuracy and compliance. Which helps avoid risks of mistakes, saving businesses time and cost. Not only does this help businesses adhere better to legal regulations, but it also facilitates more efficient and transparent financial management.
| ⭐⭐ VAT 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 |
✅ Cost Optimization and Time-Saving
Using VAT Filing service in Vietnam offers benefits of cost optimization and time-saving. In a competitive business environment, every expense needs thorough consideration. Entrusting tax declaration tasks to experts saves businesses from costs associated with training, recruiting, and maintaining an internal accounting team.
Moreover, with the support of knowledgeable professionals, complex issues during the tax declaration process can be quickly resolved. This minimizes waiting times and unnecessary risks. Furthermore, by focusing on core business operations rather than being preoccupied with tax matters, businesses can quickly meet market demands. Which optimize operational processes, and enhance productivity. As a result, businesses can maximize their resources, and generate optimal value in the market.
✅ Consultation Support and Problem Resolution
When using VAT Filing service in Vietnam from professional companies, businesses not only receive assistance in performing tax declaration accurately and in accordance with the law; but also benefit from in-depth consultation services and quick resolution of emerging problems. Tax professionals typically possess broad knowledge of tax regulations and have extensive experience in dealing with complex situations.
When any questions or problems related to taxes arise, businesses can promptly get clarifications and find appropriate solutions. This not only helps avoid the risks of penalties due to regulatory violations but also allows them to operate smoothly, without interruptions from unforeseen problems. With professional support, businesses can rest assured that every aspect of tax is managed effectively and accurately.
NN Consulting: VAT Filing Service in Vietnam
Outsourcing VAT Filing service in Vietnam is becoming the top choice for many FDI businesses. Alongside this trend is the rapid increase of providers for these services in the market. In this context, many FDI companies face challenges in choosing a reputable and quality service partner.
To help businesses minimize risks, save time and resources in finding reliable partners, we are proud to introduce to customers NN Consulting. One of the leading brands in Vietnam specializing in providing professional VAT declaration services exclusively for FDI enterprises.
We takes pride in our reputation and long-term experience in this field, and has been a trusted partner of many large FDI enterprises from countries such as Japan, Korea, America, etc. At NNC, the trust and satisfaction of our customers are not only our top priorities but also our driving force. Motivate us to constantly elevate the quality and refine every service we offer.
⭐ Service Deployment
1. Collect invoices and documents:
- Coordinate with the accounting department or finance department to obtain a list of invoices and documents for the period.
- Check the completeness and validity of the invoices and documents (date, amount, signature, red stamp, etc.).
- Arrange the invoices and documents in chronological order or by transaction content.
2. Prepare tax declarations:
- Determine revenues and expenditures during the period to prepare a declaration.
- Fill in the information in the tax declaration form according to regulations.
- Compare information on declarations and accounting books.
3. Calculate VAT:
- Summarize revenue and expenses related to VAT for the period.
- Apply the appropriate tax rate to calculate input and output VAT.
- Determine the VAT amount to be paid or to be refunded from the tax authority.
4. Provide expert tax advice:
- Offer guidance on new regulations related to personal income tax and corporate income tax.
- Provide advice on taxable and non-taxable income items.
- Guide on how to prepare personal income tax declarations.
- Assist in tax calculations based on business profits.
5. Implement tax refund procedures (if applicable):
- Verify the conditions for proceeding with tax refund.
- Prepare the tax refund application including related documents and invoices.
- Submit documents to the tax authority and monitor the processing of the application.
- Receive the refunded tax amount and record it in the accounting books.
⭐ Why Choose NN Consulting?
VAT Filing service in Vietnam at NN Consulting not only meets all quality requirements but also offers numerous outstanding benefits for businesses:
- Professional and Accurate: With a team of professionals who have in-depth expertise and experience, NNC ensures accurate and proper tax declarations. This helps businesses avoid unwanted legal risks.
- Reputable and Experienced: NNC has collaborated with numerous FDI businesses in Vietnam and is known as one of the leading units in this field. Our reputation is built on reliability, quality, and customer satisfaction.
- Transparent and Clarity: We always prioritize transparency, allowing businesses to easily monitor and control all activities related to tax declaration.
- Time and Cost Savings: Our VAT Filing service in Vietnam alleviates businesses’ legal and financial burdens. NNC helps optimize costs for businesses through effective tax consultancy.
- In-depth Consultation: Besides our main service, we also provide detailed advice on matters related to salaries, taxes, and legal regulations. This ensures that businesses are always updated and compliant.
- Quick Support: With our professional customer support system, any inquiries or arising issues will be promptly and efficiently addressed by our team.
- Tax Refund Procedures Support: In case a business is entitled to a tax refund, NNC will accompany the business from dossier preparation to resolving any arising matters.
- Flexible Services: Whether a small-medium enterprise or a larger one, NNC provides flexible service packages tailored to specific needs.
Choosing NN Consulting means you have chosen a reliable partner, ready to support anytime, anywhere, helping businesses overcome all accounting and tax challenges.
