Công văn 3687/TCT-DTNN

OFFICIAL LETTER

ON VALUE ADDED TAX (VAT) APPLICABLE TO WAREHOUSES

To: Provincial/municipal Tax Departments

The General Department of Taxation has recently received official letters from some provincial/municipal Tax Departments and some enterprises, asking for guidance on VAT declaration and payment for enterprises’ warehouses located in outside localities where enterprises are headquartered. The General Department of Taxation hereby provides the following guidance for uniform implementation throughout the country:

Under the guidance at Point 5.6, Section IV, Part B of the Finance Ministry’s Circular No. 120/2003/TT-BTC of December 12, 2003, for enterprises’ warehouses which are located outside localities where enterprises are headquartered and used only for storage of goods for customers so as to ensure goods delivery as contractually scheduled, goods may only be delivered under orders and added value invoices issued by the head-offices (added value invoices signed by enterprises’ general directors and sealed by their head offices). Therefore, when delivering goods to customers, warehouses must not make added value invoices. Enterprises shall declare and pay VAT (and BIT) for the goods volumes delivered from warehouses under orders and added value invoices issued by their head offices (as mentioned above) at Tax Departments of provinces or centrally-run cities where they are headquartered. Warehouses shall not have to declare and pay VAT at tax agencies of localities where they are located.

For cases where warehouses sell goods, thus generating incomes, they must issue added value invoices to customers and at the same time, have to declare and pay VAT at tax agencies of localities where they are located under the guidance at Point 2, Section I, Part C of the above-mentioned Circular No. 120/2003/TT-BTC.

The General Department of Taxation hereby notifies the aforesaid guidance to provincial/municipal Tax Departments for understanding and guiding units in the implementation. Any problems arising in the course of implementation should be reported to the General Department of Taxation for guidance.