Official Dispatch No. 56701/CTHN-TTHT dated November 21, 2022 of Hanoi Tax Department on VAT declaration at extra-provincial level
Accordingly, in case the Company has construction activities (construction activities are determined in accordance with the provisions of the law on the national economic system and the provisions of the specialized law) in another province where the Company has its head office, the Company shall conduct centralized accounting at the head office in accordance with the provisions of Clause 2, Clause 4, Article 11 of Decree No. 126/2020/ND-CP, declare tax returns, calculate taxes and submit tax returns to the direct tax administration department and allocate the tax payable to each province where the business activities are conducted in accordance with the provisions of Clause 1, Article 12 of Circular 80/2021/ND-CP.
In case construction activities take place in a non-tariff zone in another province where the Company is headquartered, the 0% VAT rate shall be applied if they meet the provisions of Point b, Clause 2, Article 9 of Circular 219/2013/TT-BTC and do not generate VAT payable on the revenues from construction activities, they shall not be required to allocate the tax payable to each province where the business activities are operated. Therefore, the Company is not required to make VAT declaration of such works or items with the tax authorities of the place where the construction works are located in accordance with Form 05/VAT (issued together with Appendix II of Circular 80/2021/TT-BTC).
In case the subcontractor signs a direct contract with the main contractor, does not sign a direct contract with the Owner to construct construction works in a province other than the place where the head office is located, the subcontractor is not required to declare VAT of such works to the tax authority of the place where the construction works are located according to the instructions in detail c.1, point c, Clause 3, Article 13 of Circular 80/2021/TT-BTC.