The ministry of finance

decrease of VND 100 million in the payable excise tax amount of January 2011;

rise to any payable VAT amount), after making additional declarations or modifications, taxpayers are not required to additionally pay tax and fines for late tax payment. The uncreditable VAT amount of the period for which additional declarations or modifications are made shall be declared in the item - Increase in payable VAT amounts of previous periods - of the VAT return of the tax period during which additional declarations or modifications are made.

- A written explanation of additional declarations or modifications, made according to form No. 01/KHBS provided in this Circular, leading to a decrease of VND 100 million in the creditable VAT amount of January 2011;

Case 2: In case taxpayers’ additional declarations or modifications only lead to a decrease in the creditable VAT amount for which the taxpayers have compiled a dossier of application for tax refund and the tax agency has issued a tax refund decision. In this case, taxpayers shall base on dossiers of additional declarations or modifications to repay the refunded tax amount and, at same time, determine the fine amount for late tax payment on the basis of the lately paid tax amount, the number of days of late payment (the duration for calculation of fines for late payment shall be counted from the date the tax agency issues the tax refund decision till the date the enterprise repays the refunded tax amount) as prescribed in Article

106 of the Law on Tax Administration.
Example 2:
On the VAT return of March 2011, Company F requests to halt the credit of the negative accumulative VAT amount of VND 500 million of 3 consecutive months (from January to March 2011) to make a VAT refund dossier and the tax agency has made a decision to refund the VAT amount of 500 million. In August 2011, Company F makes a dossier of additional declarations or modifications to the VAT declaration dossier of January 2011, leading to a decrease of VND 200 million in the creditable VAT amount to be cleared against the payable tax amount of the subsequent period. In this case, Company F shall repay the refunded tax amount of VND 200 million and calculate and pay fines for late tax payment according to Article 106 of the Law on Tax Administration. The dossier to be submitted by Company F to the tax agency comprises: - A written explanation of additional declarations and modifications, made according to form No. 01/KHBS provided in this Circular, leading to a decrease of VND 200 million in the creditable VAT amount of the January 2011 tax period which is to be cleared against the payable tax amount of the subsequent period;
- The VAT return of January 2011, in which the creditable VAT amount to be cleared against the payable tax amount of the subsequent period has been decreased to VND 200 million;
- Enclosed documents explaining figures in the explanation of additional declarations or modifications (if any).
Case 3: If taxpayers’ additional declarations or modifications lead to a decrease in the creditable VAT amount and an increase in the payable VAT amount, taxpayers shall pay the increased tax amount and, at the same time, determine the fine amount for late tax payment on the basis of the lately paid tax amount, the number of days of late payment and the fine

level as prescribed. After making additional declarations or modifications,

taxpayers are not required to additionally pay the creditable VAT amount

which is decreased and calculate and pay fine for late tax payment. The uncreditable VAT amount shall be declared in item - Increase in VAT amounts of previous periods - in the VAT return of the period during which additional declarations or modifications are made. Example 3:
In August 2011, Company G makes additional declarations or modifications to its VAT declaration dossier of January 2011, leading to a decrease of VND 200 million in the creditable VAT amount to be cleared against the payable tax amount of the subsequent period and an increase of VND 100 million in the payable VAT amount (under the VAT return of January 2011, the VAT amount not yet credited and cleared against the subsequent period is VND 200 million, now the uncreditable VAT amount decreases to VND 300 million, giving rise to a payable VAT amount of VND 100 million under the VAT return of January 2011). In this case, the

taxpayer shall pay the increased VAT amount of VND 100 million and calculate and pay fines for late tax payment. The uncreditable VAT amount of VND 200 million shall be declared in the VAT return of August 2011, the month of making additional declarations or modifications (in item Increase in VAT amounts of previous periods).

comprises:

increased by VND 100 million;

declaration dossier of August 2011 submitted to the tax agency copies of the written explanation of additional declarations or modifications to the

VAT return of 2011, made according to form No. 01/KHBS, and the modified VAT return of January 2011 already submitted. Example 4: After submitting VAT dossiers to tax agencies, if taxpayers

detect errors which should be additionally declared or modified but additional declarations or modifications do not lead to any increase or decrease of the payable VAT amount (errors in turnover of goods and services sold or purchased, etc.), they shall make a written explanation and a new VAT return for submission as replacement but are not required to make a dossier of additional declarations or modifications according to form No. 01/KDBS.
Tax agencies shall base themselves on taxpayers’ written explanations to modify the figures according to taxpayers’ additional declarations or modifications.
6. Places of submission of tax declaration dossiers:
Taxpayers shall submit tax declaration dossiers; dossiers of declaration of charges, fees and other state budget revenues at their managing tax agencies. The places of submission of tax declaration dossiers in some cases are specified as follows:
a/ Dossiers of declaration of house and land tax, agricultural land use tax, land use levy and land rent; dossiers of declaration of registration fee; dossiers of declaration of VAT on extra-provincial business operations and dossiers of presumptive tax declaration shall be submitted at district-level Tax Departments of localities in which such taxes arise.
b/ For royalty declaration dossiers, enterprises exploiting natural resources in provinces or cities in which they are headquartered shall submit dossiers at their managing tax agencies (provincial- or district-level Tax Departments). Taxpayers based in provinces or cities different from the localities in which they exploit natural resources shall submit dossiers at the provincial-level Tax Departments of the localities in which natural resources exploitation activities are carried out or district-level Tax Departments designated by directors of such provincial-level Tax Departments.
c/ For dossiers of enterprise income tax on real estate transfer, enterprises headquartered in the provinces or cities in which they carry out real estate transfer activities shall submit dossiers at their managing tax agencies (provincial- or district-level Tax Departments). Taxpayers that carry out real estate transfer activities in provinces and cities other than the localities in which they are headquartered shall submit dossiers at the provinciallevel Tax Departments of the localities in which real estate transfer

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activities are carried out or district-level Tax Departments designated by the directors of such provincial-level Tax Departments. d/ For excise tax declaration dossiers, taxpayers whose establishments producing goods liable to excise tax are located in provinces or cities other than the localities in which they are headquartered shall submit dossiers in the localities in which their production establishments are located. e/ In case state management agencies in a locality have stipulated the coordination in the settlement of administrative procedures, providing for the application of the one-stop-shop mechanism to tax procedures and declaration dossiers, the places of submission of tax declaration dossiers comply with the prescribed order and procedures.

city in which its head office is located shall also declare VAT for its subsidiary.

offices.

Cost-accounting subsidiary production establishments shall register for tax payment by the credit method in the localities in which production activities are carried out. When ex-warehousing semi-finished products or finished products for sale, including cases of transferring them to the head office, they shall use value-added invoices as a basis for making tax declaration and payment in localities in which production activities are carried out.

which production establishments are located.

calculated based on VAT-exclusive prices of products manufactured by the enterprise. In case the taxpayer has no tax amount to be paid at its head office, it is required to pay tax to localities in which its production

establishments are located.
The taxpayer shall make and send to the tax agency directly managing it a “Table of VAT amounts allocated to the locality in which the taxpayer is headquartered and localities in which its subsidiary production establishments which do not conduct the cost accounting are located”, made according to form No. 01-6/GTGT provided in this Circular, together with the tax declaration dossier and, at the same time, send a copy of the aforesaid tax allocation table to each of tax agencies managing its subsidiary production establishments.
Based on VAT amounts allocated to the locality in which the taxpayer is headquartered and localities in which its subsidiary production

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establishments are located indicated in the aforesaid tax allocation table, the taxpayer shall make documents on the payment of VAT to each of these localities. The tax payment documents must clearly state that taxes are paid into the state budget revenue account at the State Treasury of the same level with the tax agency of the locality in which the taxpayer is headquartered and localities in which its subsidiary production establishments are located.

VAT rate of 10% and sold by the head office.

of 10%, Company A shall determine the VAT amounts to be paid to Hai Phong and Hung Yen as: VND 500 million x 2% + VND 600 million x 2% = VND 22 million. In this case, the tax amount to be paid to localities which is determined under this principle is higher than the VAT amount to

be paid by Company A at its head office. Therefore, Company A shall distribute the VAT amount to be paid to localities as follows: The VAT amount to be paid by Company A to Hai Phong is: VND 20 million x 500 million/(500 million + 600 million + 200 million) = VND 7.69 million.
The VAT amount to be paid by Company A to Hung Yen is: VND 20 million x 600 million/(500 million + 600 million + 200 million) = VND 9.23 million.
The VAT amount to be paid by Company A to Hanoi is: VND 20 million - 7.69 million - 9.23 million = VND 3.08 million. Example 3:
Company A, headquartered in Hanoi, has 2 subsidiary production establishments located in Hai Phong and Hung Yen which do not conduct the cost accounting. Manufactured products are sold by the head office. In the tax declaration period of October 2011, the turnover of products manufactured in the Hai Phong-based plant which is calculated based on the VAT-exclusive price is VND 400 million; the turnover of products manufactured in the Hung Yen-based plant which is calculated based on the VAT-exclusive price is VND 500 million. In October 2011, Company A has no payable tax amount at its head office. Company A, therefore, is not required to pay VAT to Hai Phong and Hung Yen.
e/ In case a taxpayer conducts business operations of construction, installation or goods sale without establishing subsidiaries in provinces or cities other than the locality in which it is headquartered (below referred to as extra-provincial mobile construction, installation or goods sale

operations), the taxpayer shall submit tax declaration dossiers to districtlevel Tax Departments of the localities in which construction, installation or goods sale operations are carried out.

dossiers at their head offices.

2. VAT declaration is made on a monthly basis. VAT declaration in some specific cases is provided as follows:

in irregular business operations.

automobiles or motorbikes).