Circular No. 10/2000/TT-BTC guides the declaration and payment of VAT for goods sold by businesses at subordinate units under dependent accounting in other provinces and through commission agents.

CIRCULAR

Guidelines for declaring and paying value-added tax on goods sold by business establishments at subordinate units under dependent accounting in other provinces and cities and through authorized dealers selling at fixed prices with commission

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Pursuant to the Law on Value-Added Tax; Decree No. 28/1998/NĐ-CP dated May 11, 1998 of the Government detailing the implementation of the Law on Value-Added Tax giá trị gia tăng;

To guide the declaration and payment of taxes November 26, 2024; in accordance with the organizational structure of business establishments and consistent with Circular No. 140/1999/TT-BTC dated December 2, 1999 guiding supplementary and amended provisions in Circular No. 73 TC/TCT dated October 20, 1997 and Circular No. 17/1999/TT-BTC dated February 5, 1999 of the Ministry of Finance guiding the system of invoices and vouchers for goods circulating in the market; the declaration and payment of taxes November 26, 2024;on goods sold by business establishments at subordinate units under dependent accounting in other provinces and cities and through authorized dealers selling at fixed prices with commission shall be as follows:

I. For goods sold by business establishments at subordinate units under dependent accounting in other provinces and cities where the main office of the production and business establishment is located:

1. Issuing and circulating invoices and vouchers for goods dispatched from stock and internal consumption:

a) When a production and business establishment dispatches goods to subordinate units under dependent accounting such as branches, stores... in other provinces and cities where the main office is located, it must issue a stock dispatch note combined with internal transportation, accompanied by an internal movement order of the production and business establishment.

b) Subordinate units under dependent accounting including branches and stores... when selling goods must issue a value-added tax invoice for the goods sold according to regulations.

For goods sold that are goods allocated or assigned for sale by the company or superior unit, subordinate units base on the quantity and selling price of the goods sold to prepare a list of invoices for goods sold to transfer back to the company or superior unit to issue invoices for the goods according to point 1c of this section. The list of invoices for internally transferred goods consumed in the month is prepared according to form number 02/GTGT (announced together with Circular No. 89/1998/TT-BTC dated June 27, 1998 of the Ministry of Finance) in two copies: one copy retained by the unit, one copy sent back to the direct superior unit (if any) or the main office of the production and business establishment.

The list of invoices for goods sold is prepared monthly. In cases where the quantity and sales revenue of goods sold are large, the unit prepares the list periodically for five or ten days as specified by the business unit to ensure timely declaration and payment of taxes.

c) Based on the quantity of goods sold by subordinate units, the business establishment issues a value-added tax invoice reflecting the internal consumption of goods by subordinate units. The selling price recorded on the invoice is either the internal selling price or the selling price to the buyer as determined by the unit. The basis for issuing the invoice is the list of invoices for goods sold prepared by subordinate units and submitted to the business establishment according to point 1b of this section. The invoice is issued in summary for one list except in cases where the list is prepared for products or groups of products with different tax rates. The value-added tax invoice is issued in three copies: copy 1 retained by the main unit, copy 2 given to the subordinate unit consuming the goods, copy 3 used as accounting voucher. The invoice must clearly state in column B (name of goods, service): "Goods sold internally transferred". This invoice is not used to replace circulation vouchers for goods on the market.

2. Declaration and Payment of Taxes:

a) For the main offices of business establishments:

The main office of a business establishment declares and pays value-added tax at the local authority where its headquarters is located according to current regulations each month. The turnover declared for value-added tax includes the turnover from selling goods according to the value-added tax invoice directly issued by the main office of the business establishment and the turnover from goods sold at subordinate units according to the value-added tax invoice issued to subordinate units according to point 1.c of this section (accompanied by the list of invoices for internally transferred goods already consumed reported by subordinate units - certified and stamped copy by the business establishment). In cases where the business establishment has not yet fully and promptly compiled the quantity of internally transferred goods consumed by subordinate units in the month to issue a value-added tax invoice and declare and pay taxes, the quantity of goods consumed in the month without an invoice will be carried over to issue an invoice and declare and pay taxes in the following month.

b) For subordinate units under dependent accounting:

Each month, subordinate units under dependent accounting such as branches, stores... must declare and pay value-added tax at the local authority where the branch, store... is registered, declare and pay taxes according to Section II Part C of Circular No. 89/1998/TT-BTC (including both internally transferred goods and other goods directly bought and sold by the unit), accompanied by the list of invoices for internally transferred goods already consumed reported by subordinate units (if applicable).

Example: Company A producing cement has its main office in Hai Phong. The company has Branch B as a subordinate accounting unit located in Hanoi and Store C as a subordinate unit under Branch B located in Ha Tay. In the month, Company A dispatches 1000 tons of cement internally to Branch B. In the month, Branch B sells directly 500 tons and dispatches 300 tons internally to Store C. In the month, Store C consumes 150 tons. The issuance of invoices, vouchers, and declaration and payment of taxes by these units are as follows:

When Company A and Branch B dispatch goods internally to subordinate units using a stock dispatch note combined with internal transportation.

Store C when consuming cement must issue invoices to customers and declare and pay VAT at Ha Tay for goods sold, including cement transferred from Branch B that has been consumed (150 tons), while preparing a List of Cement Invoices Sold (150 tons) to be sent back to Branch B for Branch B to base on issuing VAT invoices for the transferred cement consumed by Store C in Ha Tay (150 tons). Based on the VAT invoice issued by Branch B, Store C declares input VAT for the consumed cement.

Branch B in Hanoi must declare and pay VAT in Hanoi for goods sold in the month, including cement transferred from Company A that has been consumed (650 tons - including 500 tons consumed in Hanoi and 150 tons consumed at the store in Ha Tay). At the same time, Branch B prepares a List of Invoices for the consumed transferred cement (650 tons) to be sent back to Company A in Hai Phong so that Company A can issue VAT invoices for the consumed 650 tons of cement. The VAT invoice issued by Company A serves as the basis for Branch B to declare input VAT for the consumed cement (650 tons).

Cement Company A in Hai Phong must declare and pay VAT in Hai Phong for the quantity of cement directly sold by the company and the transferred cement consumed by Branch B (650 tons).

II. For goods sold through commission agents.

1. Production and business establishments (units acting as owners transferring to commission agents) when exporting goods to commission agents according to the price with commission as stipulated in the Trade Law must prepare an Outbound Goods Delivery Note for Sale Through Commission Agents in accordance with Circular No. 140/1999/TT-BTC dated December 2, 1999 of the Ministry of Finance, along with a commission agency contract.

Based on the actual goods consumed through commission agents, the unit transferring to commission agents must issue a VAT invoice reflecting the goods consumed to be handed over to the commission agent.

The basis for issuing the invoice is the Monthly Sales Invoice List of goods sold through commission agents that have been consumed in the month prepared by the commission agents and sent back in accordance with Point 2 of this Section. The invoice is compiled into one list; if products or product groups sold have different tax rates, separate lists are prepared according to the type of goods with the same tax rate. The invoice is made in three copies: Copy 1 is kept by the unit transferring to commission agents, Copy 2 is given to the commission agent, and Copy 3 is used as accounting documentation.

This invoice must clearly state under Column B (name of goods/services): "Goods sold through commission agents." This invoice cannot replace trading documents on the market.

On a monthly basis, the unit transferring to commission agents must declare and pay taxes for goods consumed in the month, including goods sold through commission agents, in accordance with current regulations, accompanied by a copy of the Monthly Sales Invoice List of goods consumed through commission agents prepared by the commission agents and confirmed and stamped by the unit transferring to commission agents. If, at the time of declaration and payment of taxes, the unit transferring to commission agents has not yet received and compiled the Monthly Sales Invoice List of goods consumed through commission agents to issue VAT invoices and declare output VAT for the commission agents, then the goods sold through commission agents that have been consumed will be issued VAT invoices and declared for tax payment in the following month.

2. Commission agents when selling goods must issue invoices. The use of invoices for goods sold through commission agents is as follows:

a) Commission agents subject to VAT calculation using the deduction method, when selling goods through commission agents, use the commission agent's VAT invoice. The invoice recording is carried out uniformly with the supplier regarding the sale price excluding VAT, tax rate, and VAT amount.

For goods sold through commission agents that are not subject to tax November 26, 2024; or goods sold through commission agents that are subject to tax November 26, 2024; by the unit transferring to commission agents which is subject to tax calculation using the direct method also uses invoices November 26, 2024;, on the invoice only records the sales price as specified by the unit transferring to commission agents, the tax rate and tax amount November 26, 2024; are not recorded and crossed out. If goods sold through commission agents are taxable items

then the commission agent must register with the tax authority to use sales invoices. November 26, 2024;b) Commission agents subject to tax calculation using the direct method use sales invoices (applicable to both taxable and non-taxable goods November 26, 2024; ), the invoice records the sales price according to the supplier's specified price. If goods sold through commission agents are taxable items November 26, 2024;.

then the sales price recorded on the invoice includes tax.

3. When commission agents settle commission fees, the commission agent must issue an invoice to the unit transferring to commission agents. If the commission agent is subject to VAT calculation using the deduction method, they use a VAT invoice, record the sales price as the commission fee, do not record and cross out the VAT amount; if the commission agent is subject to tax calculation using the direct method on value-added, they use a sales invoice (general invoice). November 26, 2024; 4. At the end of the month, commission agents must prepare a Monthly Sales Invoice List of goods sold through commission agents that have been consumed in the month according to Model No. 02/GTGT issued by Circular No. 89/1998/TT-BTC to send to the unit transferring to commission agents as the basis for the unit transferring to commission agents to issue invoices

for the commission agent for the goods consumed in the month. The Monthly Sales Invoice List of goods sold through commission agents that have been consumed in the month is made in three copies: one copy is kept by the unit, one copy is sent to the unit transferring to commission agents, and one copy is sent to the tax authority directly managing tax collection together with the tax declaration form of the unit. If the volume of goods sold is large, the unit transferring to commission agents may stipulate periodic preparation of the list every five or ten days to issue invoices appropriately and ensure timely tax declaration and payment.

5. Commission agents are not required to declare, calculate, and pay value-added tax on goods sold on consignment and commission income; however, they must prepare a Sales Invoice Register for consigned goods that have been sold according to the provisions of point 4 of this section and a Purchase Invoice Register for consigned goods in accordance with Form No. 03/GTGT issued together with Circular No. 89/1998/TT-BTC dated June 27, 1998 of the Ministry of Finance, and submit it to the directly managing tax authority within the first ten days of the following month.

Commission agents as defined by the Commercial Law are not required to calculate and pay value-added tax on goods sold on consignment and commission income if they meet the following conditions:

There is a consignment sales contract clearly stipulating the commission to be received and the selling price as prescribed by the consignor.

The invoice for consigned goods must comply with the provisions of this Circular.

Payment for goods and commission is made in installments after the completion of the sale of a certain quantity of goods.

If commission agents do not meet the above conditions, they must declare, calculate, and pay value-added tax on consigned goods as if they were purchasing and reselling them outright. Commission income shall be recorded as other income subject to corporate income tax.

In cases where consignment agents sell goods at prices lower than those specified by the consignor, they must declare and pay value-added tax on consigned goods. If the unit has a higher input value-added tax than output value-added tax due to the selling price being lower than the price specified by the consignor, the unit will not have a basis for refunding value-added tax.

III. EFFECTIVE DATE OF IMPLEMENTATION

This Circular takes effect fifteen days from the date of signature and applies to declarations and payments of taxes. November 26, 2024; ngày 22 tháng 9 năm 2016. Mức thu vé lượt áp dụng kể từ ngày 22 tháng 9 năm 2016. Mức thu vé tháng, vé quý áp dụng kể January 1 6.Implements one-time payments for those who have contributed to the revolution according to Ordinance No. 19/2000/PL-UBTVQH10 dated February 4, 2000, of the Standing Committee of the National Assembly; provides housing support for those who were active in the revolutionary movement before 1945 according to Decision No. 20/2000/QĐ-TTg dated February 8, 2000, of the Prime Minister.

For units under management and accounting requirements that do not wish to use internal shipment and transport certificates or consignment sales shipment certificates but instead use value-added tax invoices when shipping goods to subordinate units located in different localities or to commission agents, such units shall use value-added tax invoices. The main office of the unit and subordinate units located in different localities shall base their declarations and payments of value-added tax at their place of registration according to point 1, Section II, Part C of Circular No. 89/1998/TT-BTC dated June 27, 1998 of the Ministry of Finance. The unit must register with the directly managing tax authority regarding the type of document used. The unit may only use one of the two types of value-added tax invoices or internal shipment and transport certificates, consignment sales shipment certificates when shipping goods to subordinate units located in different localities or to commission agents.

The provisions concerning the use of invoices (sales invoices), internal shipment and transport certificates, or consignment sales shipment certificates set forth in this Circular also apply to production units subject to special consumption tax when shipping taxable goods to subordinate units under dependent accounting or selling through commission agents.

Any provisions contrary to the provisions of this Circular are hereby abolished. Provisions regarding the use of invoices, tax identification numbers, and tax registration and payment apply to production and business units and subordinate units under dependent accounting located in different provinces or cities; commission agents continue to follow the provisions of Circular No. 89/1998/TT-BTC dated June 27, 1998, Circular No. 175/1998/TT-BTC dated December 24, 1998 of the Ministry of Finance, and other current guiding documents.

During implementation, if there are any difficulties, please report to the Ministry of Finance for resolution./.