On September 07, 2022, Bac Ninh Tax Department issued Official Letter No. 2697/CT BNI-TTHT, according to which:
In case the Company has established a branch located in Bac Ninh province, but has not handed over to the branch directly managing the investment project in Bac Ninh province, the dependent accounting branch does not have a bank account and has not kept the accounting books and invoices of the project, the Company shall make tax returns, VAT refund dossiers separately for investment projects in Bac Ninh province with Bac Ninh Provincial Tax Department, and at the same time transfer all input VAT amounts of investment projects to offset with VAT declaration of on-going production and business activities, the amount of VAT is transferred from the investment project is maximum equal to the amount of VAT payable in the production and business activities in the period. After offsetting, if the input VAT amount of the new investment project has not been fully deducted from VND 300 million or more, VAT will be refunded for the investment project.
In case the company decides to hand over to a branch in Bac Ninh province on behalf of the company to directly manage the project in Bac Ninh, the branch has a seal as prescribed by law, keeps the books of documents in accordance with the law on accounting, has an account deposited at the bank, the branch in Bac Ninh must make a tax return, VAT refund separately with Bac Ninh Tax Department. When the investment project for the establishment of the enterprise and the procedures for business registration and tax payment registration have been completed, the Company must summarize the unpaid VAT amount of the investment project to hand over to the newly established branch for declaration, pay taxes as prescribed at Point b, Clause 3, Article 1 of Circular No. 130/2016 / TT-BTC of the Ministry of Finance.
