Responded by units: The Ministry of Finance

Official letter: 6117/BTC-CST, dated: 2017-05-11

Responded contents:

Problems of the tax working group have not stated clearly we recommend the Tax Working Team to notify in detail the contents arisen at which customs office so that the General Department of Customs can consider and response.

A / Regarding the VAT refund:

Pursuant to Law No. 106/2016 / QH13 dated April 6, 2004, amending and supplementing a number of articles of the Law  on Value Added Tax and the Law on Special Consumption Tax and the Law on Tax Administration, which have taken effect from July 1, 2016 that only stipulate the VAT refund in two (2) cases: tax refund for investment project and tax refund for export goods and services.

Thus, compared with the time before July1, 2016, the Law on VAT has eliminated provisions on VAT refund for business establishments which have VAT input amounts have not yet accumulated after at least twelve months from the first month or after at least four quarters from the first quarter.

In cases where business establishments have their VAT amounts not yet fully deducted before the tax calculation period of July 2016 (for cases of monthly declaration) or before the tax calculation period of the  third quarter of 2016 (for cases of quarterly declaration) eligible for VAT refund, tax offices shall still consider the tax refund according to the provisions of law.

 To request enterprises to clearly state the problems regarding tax refund procedures in detail and at which contents and tax agencies, based on those,  the Finance Ministry shall direct the settlement thereof.

1. b / Regarding methods of VAT declaration:

Pursuant to Clause 2, Article 10 of Law  on VAT No. 31/2013 / QH13 dated June 19, 2013; Clause 4, Article 7 of the Government's Decree No. 209/2013 / ND-CP dated December 18, 2013, the Ministry of Finance (the General Department of Taxation) has issued many official letters to enterprises and local taxation departments.

In cases where newly-set up enterprises send notices on the application of the tax deduction method (form 06 / GTGT) to tax agencies directly managing them for registration of VAT payment by the tax deduction method, enterprises shall applythe method of deduction for a period of two years is stable and the Form 06 / GTGT is not required to be returned to the tax office for this period.

At the end of 02 years, if enterprises have turnover of more than 1 billion VND, enterprises shall continue to apply the tax deduction method. In cases where the turnover is less than VND 1 billion and voluntarily apply the tax deduction method, enterprises shall send the form 06 / GTGT to the tax agency for further application of the method of VAT deduction. The tax office shall receive the Form 06 / GTGT and issue a written reply to the enterprise for continued application of the VAT deduction method.

The Ministry of Finance is amending the Circular No. 219/2013 / TT-BTC by the Ministry of Finance to reduce administrative procedures and create favorable conditions for enterprises with the following contents:

Newly-established enterprises shall only have to send the notice once on the application of the tax deduction method (the Form 06 / GTGT) upon their establishment and in the course of operation, enterprises earning less than VND 1 billion shall not be sent the Form 06 / GTGT only, if the enterprise wishes to convert the method of tax calculation (from the direct method to the deduction method or vice versa), the new enterprise shall return the notice on the application of the tax calculation method GTGT (Form 06 / GTGT).