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.
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Call: +84 989 157 682
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DMS LAW LLC
Director
(Signed)
Lawyer Do Minh Son
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