Enterprises declare VAT on revenue from other provinces
(Baonghean) - Question:The Tax Department is requested to provide guidance for businesses to be clear: For construction and installation projects outside the province that involve many localities such as: construction of roads, power lines... where the revenue of the project in each provincial locality cannot be determined, how should businesses declare value added tax on construction and installation revenue outside the province?
Reply:At Point b, Clause 1, Article 2, Circular No. 26/2015/TT-BTC dated February 27, 2015 of the Ministry of Finance, amending and supplementing Point e, Clause 1, Article 11, Circular No. 156/2013/TT-BTC (amended and supplemented by Circular No. 119/2014/TT-BTC dated August 25, 2014 of the Ministry of Finance) as follows:
Supplementing tax payment instructions for taxpayers whose projects involve multiple localities, specifically:
“In case the taxpayer has a construction or installation project outside the province related to many localities such as: construction of roads, power lines, water, oil, gas pipelines... and cannot determine the revenue of the project in each provincial locality, the taxpayer shall declare value added tax on the revenue from construction or installation outside the province together with the value added tax declaration at the head office and pay VAT to the provinces where the project passes through. The amount of VAT payable to the provinces is calculated according to the percentage (%) of the investment value of the project in each province determined by the taxpayer multiplied (x) by 2% of the revenue excluding VAT of the construction project.
The VAT amount paid (according to tax payment documents) for inter-provincial construction activities is deducted (-) from the tax amount payable on the VAT Declaration (Form No. 01/GTGT) of the taxpayer at the head office.
Taxpayers shall prepare a Table of VAT allocation payable to localities where inter-provincial construction and installation works are located (Form No. 01-7/GTGT issued with this Circular) and send a copy together with the VAT Declaration to the Tax Department where VAT revenue is enjoyed.”
Nghe An Tax Department
