Allocate Value-Added Tax payable to provinces where the production facility is located
DMS Law firm in Danang, Vietnam advise about allocate Value-Added Tax payable to provinces where the production facility is located ?
The amount of Value-Added Tax (VAT) payable to provinces where the production facility is located is equal to the revenue excluding VAT multiplies by 2% (for goods subject to the 10% VAT rate) or 1% (for goods subject to the 5% VAT rate) provided that the total amount of VAT payable to provinces where the production facility is located does not exceed the VAT payable amount of the taxpayer at the head office. In case the production facility transfers finished or semi-finished products to other internal units for sale, the revenue of the manufactured products shall be determined on the basis of the production cost of the products.
If the total VAT payable to the provinces calculated by the above method is greater than the total VAT payable of the head office, the total VAT payable of the head office shall be prorated to each province based on the revenue excluding VAT of products produced in each province and the total revenue excluding VAT of products produced by the taxpayer./.
Legal base:
Circular No. 80/2021/TT-BTC of the Ministry of Finance issued on September 29, 2021.
Contact us:
Call: +84 989 157 682
Email: dmslawfirm@gmail.com
DMS LAW LLC
Director
(Signed)
Lawyer Do Minh Son
RELATING ITEMS
Are VAT invoices required for exported goods, services ?
27 May, 2020// Group: LAW ON ACCOUNTING AND TAXESA company shall use VAT invoices for its sales of goods in Vietnam (domestic sales) and not use VAT invoices for exportation
Bonus, rewards given to employees in Vietnam
27 May, 2020// Group: LAW ON ACCOUNTING AND TAXESSalaries, bonuses, life insurance for employees for which the conditions for entitlement and rates of entitlement are not specified in
Related party transactions and transfer pricing in Vietnam
26 May, 2020// Group: LAW ON ACCOUNTING AND TAXESLawyers in Vietnam advise about setting up a representative office in Vietnam
Dutiable objects and declaration of import, export duties in Vietnam
26 May, 2020// Group: LAW ON ACCOUNTING AND TAXESThe declaration of duties on imported, exported goods shall be implemented upon occurrence
Deduction of input VAT in Vietnam
26 May, 2020// Group: LAW ON ACCOUNTING AND TAXESEnterprises, cooperatives buying products from farming, breeding, aquaculture, catching which are not processed into other products or have only been preprocessed