(Chinhphu.vn) - Uy Hoanh Electric Wire and Trading Co., Ltd. is headquartered in Ho Chi Minh City. In April 2015, the company leased a warehouse in Ha Tinh province, warehousing activities are receipt and delivery of goods, but the accounting of turnover and expenses are calculated in the head office. So, does the company have to declare and pay VAT at out-of-province?
Regarding this issue, Tax Department in Ho Chi Minh City would like to answer as follows:
Pursuant to Clause 1, Article 9 of the Finance Ministry's Circular No. 80/2012 / TT-BTC of May 22, 2012, which guides the Law on Tax Administration on tax registration:
“If a tax payer issued with the tax code engages in new business or production or expands the business engages in new business or production or expands the business to other provinces or cities (without establishing new branches or affiliated units), such tax payers must apply for tax registration at the tax authorities in charge of the area where new business activities or business expansion arise as prescribed by law provisions on tax.
Tax payers being enterprises or organizations shall use the declaration form No. 01-DK-TCT, the affiliated units of enterprises or organizations shall use the declaration form No. 02-DK-TCT enclosed with the contract or the license for new business activities, license for business expansion to apply for tax registration at the Department of Taxation in charge of the province or city where the new business activities or business expansion arise. The tax payer must write the issued tax code on registration declaration sheet”
Pursuant to Point c, Point e, Clause 1, Article 11 of the Finance Ministry's Circular No. 156/2013 / TT-BTC dated 16/11/2013, guiding the implementation of a number of articles of the Law on Tax Administration on declaration VAT:
“Where the taxpayer has an affiliate in another province than the taxpayer’s head office, the affiliate shall directly submit the VAT declaration to the 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 taxpayers are engaged in construction, installation and / or out-door business activities outside the province and transfer of real estate outside the provinces not falling into the cases specified at Point c, Clause 1 of this Article without formulating affiliated units at other provinces where the taxpayer is headquartered (hereinafter referred to as construction, installation, real estate, sale and transfer outside the province), the taxpayer must file to make preliminary tax declaration for local tax offices which conduct construction, installation, real estate, sale and transfer activities outside the province.
Example 17: Company B has a head office in Ho Chi Minh City. Its warehouses in Hai Phong and Nghe An are not meant to trade. When company B sells goods from the warehouse in Hai Phong to a company C in Hung Yen, company B is not required to declare tax on extraprovincial sale in the locality where the warehouse is situated (Hai Phong or Nghe An). "
Pursuant to the Finance Ministry's Circular No. 39/2014 / TT-BTC of March 31, 2014, guiding goods sale or service provision invoices.
Uy Hoanh Electric Wire and Trading Company Limited is headquartered in Ho Chi Minh City. According to the indication, in order to facilitate business activities when selling goods to customers in Ha Tinh province, the company has warehouse located at Hamlet 8, Ky Tinh commune, Ky Anh district. , Ha Tinh province (warehouse is not meant to trade, only to receipt and deliver goods to customers according to sales invoices made by the company), the company must register the warehouse tax to local tax authorities where warehouses are closed according to regulations.
When delivering goods to customers, the company is not required to declare the current VAT where the warehouse is located, but the declaration is concentrated in the city. When transferring goods to the warehouse, the company shall make ex-warehousing cum internal transport documents together with the transfer order.
- By : Online Newspaper of the Government / Translator: HaiYen-Bizic
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