According to Mr. Hoang's reference to Article 4, Section 3 of Circular No. 80/2021/TT-BTC, it states: 'For units directly selling goods, using invoices registered by the dependent unit or registered by the taxpayer with the tax authority in charge of the dependent unit, who track the full accounting of value-added tax on outputs and inputs, the dependent unit shall declare and pay value-added tax to the tax authority directly in charge of the dependent unit.'

Mr. Hoang asked whether his unit, which does not separately account for value-added tax (VAT) on inputs and outputs, can declare VAT together with the parent company on a quarterly basis. Is there any regulation requiring a branch dependent on the same province as the parent company to declare VAT separately if the branch issues its own invoices?

The Ministry of Finance responds to this issue as follows:

Based on Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance providing guidance on the implementation of certain provisions of the Tax Management Law and Decree No. 126/2020/NĐ-CP dated October 19, 2020 of the Government detailing certain provisions of the Tax Management Law.

In Article 4, Section 13, concerning tax declaration, calculation, allocation, and payment of VAT:

“4. For units that directly sell goods, use invoices registered by the dependent unit, or registered by the taxpayer with the tax authority in charge of the dependent unit, and fully account for value-added tax on outputs and inputs, the dependent unit shall declare and pay value-added tax to the tax authority directly in charge of the dependent unit.”

Based on these regulations, in the case where Mr. Hoang's company has a branch that is a unit directly selling goods, uses invoices registered with the tax authority in charge of the branch, and fully accounts for value-added tax on outputs and inputs, the branch should declare and pay value-added tax to the tax authority directly in charge of the branch in accordance with Article 4, Section 13 of Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance