Responsibility to submit VAT declaration in Vietnam

Hi DMS Attorney in Vietnam! Could you advise me about where to submit tax declaration files if the taxpayer has dependent units located in the same province, in a different province ?

Hi!

Responsibility to submit VAT declaration files:

The taxpayer shall submit tax declaration to the supervisory tax authority.

Where the taxpayer has a dependent unit (an affiliate) in the same province or centrally-run city (hereinafter referred to as province) as the taxpayer’s head office, the taxpayer shall file a joint VAT declaration.

If the affiliate has a seal, deposit account, directly sells goods or services, declares sufficient input and output VAT, and wishes to declare tax separately, it must apply for permission to declare tax separately and use separate invoices.

Directors of local Departments of Taxation shall decide the place where providers of restaurant, hotel, massage, and karaoke services declare their tax.

Where the taxpayer has an affiliate in a province other than that of the taxpayer’s head office, the affiliate shall directly submit the VAT declaration to its supervisory tax authority. If the affiliate does not sell anything and thus does not earn any revenue, tax shall be declared at the taxpayer’s head office.

Where the taxpayer has property projects for sale in a province other than that of the taxpayer’s head office and establishes an affiliate (branch, management board, etc.), then the taxpayer must apply for tax registration and use credit-invoice method to pay the tax on real estate trading to the tax authority of the locality where real estate is sold.

Where a taxpayer that declares and pays tax using credit-invoice method has a manufacturing division (including processing, assembling facility) situated in a province other than that of the head office that does not directly sell goods and thus does not earn any revenue, then: If the affiliated manufacturing division keeps accounting records, tax shall be registered and paid using credit-invoice method in the same locality, and VAT invoices shall be used when semi-finished products or finished products are transferred, including those transferred to the head office. If the manufacturing division does not keep accounting records, the taxpayer shall declare tax at the head office and pay tax in the locality where the manufacturing division is situated. The VAT payable to the locality of the affiliated manufacturing division is 2% (if the goods incur 10% VAT) or 1% (if the goods incur 5% VAT) of the revenue at VAT-exclusive prices of products. The (taxable) revenue of products is determined based on the costs of production or prices of the same kind of products in the locality where the manufacturing division is situated.

The taxpayer shall make and send a “VAT distribution table” (form No. 01-6/GTGT) together with the tax declaration to the supervisory tax authority, and a copy of form 016/GTGT to the supervisory tax authorities of the manufacturing divisions (Clause 1 Article 11, Circular No.15/VBHN-BTC dated May 09, 2018).

Related topics:

Differences in tax position of individual investors in Vietnam

Conditions for input VAT deduction

Consulting services:

Phone: 0914 165 703 or email: dmslawfirm@gmail.com

Responsibility to file VAT returns in Vietnam