How the management of taxes for a business location in a different province from the managing unit is regulated?

Question:

According to legal regulations, a business has the right to establish a business location in a province or city different from where the company’s headquarters is located, without establishing a branch. We are a business with our headquarters in Ho Chi Minh City, and we plan to establish an additional business location in Binh Duong province. We would like to inquire about the following:

1.  How will the tax management for our business location in Binh Duong province be conducted?
2.  How will tax declaration, payment, and the use of invoices for the business location in Binh Duong province be carried out?

Answer:

-Based on Circular No. 156/2013/TT-BTC dated November 6, 2013, issued by the Ministry of Finance, providing guidance on the implementation of certain provisions of the Tax Management Law.

-Based on Official Letter No. 3200/TCT-KK dated August 12, 2019, issued by the General Department of Taxation regarding tax management for business locations located in a different province from the managing unit.

-In cases where a business with its main headquarters in Ho Chi Minh City establishes a business location in another province or city without establishing a branch, the following procedures should be followed:

1. Regarding tax registration: The business should contact the local Tax Authority in Binh Duong province, where the business location is established, to obtain a 13-digit tax identification number for that business location.
2. Regarding invoice issuance notification: The business location can use the same invoice template as the main company for each business location and should submit an invoice issuance notification for each business location to the assigned Tax Authority responsible for managing the tax of that specific business location.
3.  Regarding value-added tax (VAT) declaration and payment: The business should use the 13-digit tax identification number of the business location to declare and pay taxes related to that specific business location, in accordance with the regulations stipulated in Article 11, Clause 1, Point c, Point d of Circular No. 156/2013/TT-BTC, and Article 3, Point 3 of Circular No. 119/2014/TT-BTC, as amended, issued by the Ministry of Finance.