What are places for paying value added tax (VAT) in Vietnam? Which subjects are subject to the tax rate of 5% in Vietnam?

What are places for paying value added tax (VAT) in Vietnam?

Pursuant to Article 20 of the Circular 219/2013/TT-BTC stipulating places to pay tax:

- Taxpayer shall declare and pay VAT in the locality where the business is situated.

- If the taxpayer that pays VAT using credit-invoice method has a financially dependent manufacturing facility in a province other than the province where the headquarter is situated, VAT shall be paid in both provinces.

- If a company or cooperative that uses direct method has a manufacturing facility in a province other than that where the headquarter is situated, or engages in extraprovincial sale, the company or cooperative shall pay direct VAT on the revenue earned from extraprovincial sale in the province where the sale is made. The company or cooperative is not required to pay direct VAT on such revenue, which has been declared at paid, at the headquarter

- When a provider of telecommunications services provides postpaid telecommunications services in a province other than the province where their headquarter is situated, and establish a financially dependent branch that pays VAT using credit-invoice method and also provides postpaid telecommunications services in that same province, the provider of telecommunications services shall declare and pay VAT on postpaid telecommunications services as follows:

+ VAT on the total revenue from provision of postpaid telecommunications services of the provide shall be declared at the supervisory tax authority of the headquarter.

+ VAT shall be paid in the provinces where the headquarter and the branch are situated.

What are places for paying value added tax (VAT) in Vietnam? - image from internet

Which subjects are subject to the tax rate of 5% in Vietnam?

Pursuant to Clause 1 Article 8 of the Law on Value-Added Tax in 2008 (amended by Clause 3 Article 1 of the Law on amendments to the Law on Value-Added Tax in 2013 and Clause 2 Article 1 of the Law on amendments to the Law on Value-added tax, the Law on special excise duty, the Law on Tax administration in 2016) stipulating subjects subject to the tax rate of 5% in Vietnam: