Does the parent company occupy the funds of its subsidiaries to pay VAT?

Yes According to the information of China Travel Service. Com, the parent company and its subsidiaries are equal business entities, operating independently and being responsible for their own profits and losses. Interest-free capital lending between enterprises is to provide services free of charge, which needs to be regarded as sales and subject to value-added tax. Therefore, if the parent company occupies the funds of its subsidiaries, it must pay VAT.