– In Clause 3, Article 42 of the Law on Tax Administration 2019 stipulates the principles of tax declaration and tax calculation:
“3. Taxpayers shall declare tax at the local tax authority in charge of the area in which their headquarters are based. A taxpayer that does accounting mainly at the headquarters and has dependant units in other provinces shall declare tax in the province in which the headquarters are based and distribute tax incurred in each province. The Minister of Finance shall elaborate this Clause.”
– In Clause 9, Article 11 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government detailing a number of articles of the Law on Tax Administration:
“Article 11. Tax return filing location:
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9. Based on the actual situation in the area under management, in case a competent state agency at the provincial level decides to decentralize revenue sources to the place where the dependent unit or business location is located in the same province as the place where the taxpayer’s head office is located, the taxpayer shall calculate and allocate tax payable to the district-level area where the revenue is generated.”
In Clause 4, Article 13 of Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance guiding the implementation of a number of articles of the Law on Tax Administration and Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government detailing a number of articles of the Law on Tax Administration:
“Article 13. Tax declaration, tax calculation, distribution and payment of value-added tax
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4. In case a dependent unit directly sells goods, uses invoices registered by the dependent unit or the taxpayer to the supervisory tax authority of the dependent unit, fully records input and output VAT, the dependent unit shall declare and pay VAT to its supervisory tax authority.”
Pursuant to the above regulations, in principle, in case the Company has many dependent branches in the same province as the head office, the dependent branches directly sell goods and use invoices registered by the dependent unit or the taxpayer to the supervisory tax authority of the dependent unit, fully record input and output VAT, the dependent unit shall declare and pay VAT to its supervisory tax authority as prescribed in Clause 4, Article 13 of Circular No. 80/2021/TT-BTC.