On October 29, 2019, General Department of Taxation issued Circular No. 4398/TCT-KK. Whereby:
If the company has registered to pay VAT by deduction method and has a branch (located in different province) directly issuing VAT invoices for selling goods and services, the Branch shall:
– Create invoices, notify the publication of invoices and use invoices as guided in Circular No. 39/2014/TT-BTC, Circular No. 37/2017/TT-BTC and other related amending Circulars.
– Record separately revenue, input and output VAT arising from production and business activities at the branch, declare and pay VAT by deduction method to the local managing tax office as guided in Point c, Clause 1, Article 11 of Circular No. 156/2013/TT-BTC, Article 14 of Circular No. 219/2013/TT-BTC, Point a, Clause 9, Article 1 of Circular No. 26/2015/TT -BTC and other related amending Circulars.
– The company must issue a VAT invoice to the Branch for goods delivered to the branch in accordance with Point 2.6 (a) in Appendix 4 issued alongside Circular No. 39/2014/TT-BTC.
Regarding input VAT invoices bearing the buyer’s name and tax code of the Company, which has been declared by the Company to the direct managing tax office but directly serving production and business activities of the Branch:
– If the Company has not received the announcement of tax examination or tax inspection by a tax authority or a competent authority for the relevant tax period at the Company’s headquarters, the Company shall make additional declarations to adjust the corresponding input VAT and make a hand-over record to the branch so that the branch can declare tax directly to the local tax office;
– If the Company has received the announcement of tax examination or tax inspection for the relevant tax period at the Company’s head office, the Company shall follow the examination or inspection results.
