Official Letter No. 831/CT-NVT dated 24/04/2025 issued by the Department of Taxation on VAT declaration

In case the Corporation converts to a centralized accounting model at its head office, it shall directly issue output value-added invoices for production and business activities of branches in provinces other than those where the Company is headquartered (except for units assigned to manage business cooperation contracts) and fully meet the conditions for tax deduction the input value added of the entire operation of the branches in accordance with the law on value-added tax, the company may declare value-added tax concentrated at the head office and allocate it to the locality where the production establishment is located as prescribed.

In case the branch directly sells goods and uses invoices registered by the branch with the tax authority managing the branch, monitors and fully accounts output and input VAT, the branch shall declare and pay VAT to the tax authority directly managing the branch.

In case the company is assigned to manage the business cooperation contract with an organization but does not establish its own legal entity, it must separately declare VAT for the business cooperation contract as agreed upon in the business cooperation contract.

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