Tax policy questions and answers:Pay tax on power plants in other provinces
Enterprises ask: How should a taxpayer declare VAT if he has a power plant in a different province than where the taxpayer's head office is located?
Nghe An Tax Department responded as follows:
Pursuant to the provisions of Point c, Clause 1, Article 11 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government:
Taxpayers with power plants located in a different province from where the taxpayer has its head office shall declare VAT separately for power production activities and submit tax declaration dossiers to the local tax authority where the power plant is located.
When declaring taxes, taxpayers must select the name of the production and business activity in item [01a] of VAT declaration form No. 01/GTGT as "Power generation plant in another province where the head office is located".