Responded by units: The Ministry of Finance and the General Department of Taxation

Official letter: No 8574/BTC-TCT, dated: 2020-07-15

Responded contents:

In Clause 3 Article 1 of Law No. 106/2016 / QH13 (effective from July 1, 2016) amending and supplementing a number of articles of the Law on Value Added Tax, Law on Special Consumption Tax and Law on Tax Administration Tax refund terms are as follows:

“3. Clause 1 and Clause 2 Article 13 is amended and supplemented as follows:

Business establishments that pay value-added tax according to the tax credit method, if their input value-added tax amounts have not been fully credited in a month or a quarter, may credit them in the following period.

In case a business establishment has registered to pay value-added tax by the deduction method has a new investment project, is in the investment stage and has value-added tax on goods or services purchased and used for investments that have not been deducted and the remaining tax amount is three hundred million dong or more, value added tax will be refunded.

Business establishments are not entitled to value added tax refund, but may carry forward the undiscounted tax amount of the investment project according to the provisions of the investment law to the next period in the following cases:

1. The business establishment's investment project does not fully contribute the registered charter capital; dealing in a conditional business line or line when the business conditions are not satisfied under the provisions of the Investment Law or the business conditions are not maintained during the course of its operation;

2. Investment projects on exploitation of natural resources and minerals licensed from July 1, 2016 or investment projects for production of products and goods in which the total value of natural resources and properties plus energy costs accounts for from 51% of product cost or more under investment projects.

The Government shall detail this Clause.

2. If a business establishment has exported goods or services in a month or quarter, if the uncredited input value-added tax amount is at least three hundred million dong or more, it shall be entitled to a monthly VAT refund. precious; except for goods imported for export, and exported goods that are not exported within customs operating areas in accordance with the Law on Customs. Carrying out tax refund first, checking after exchange with taxpayers producing exports without violating the law on tax and customs for two consecutive years; Taxpayers are not subject to high risks in accordance with the Law on Tax Administration.

Pursuant to the above provisions, from July 1, 2016, there are no longer regulations on tax refund for business establishments that have accumulated input value-added tax after at least twelve months from the first month or after at least four quarters from the first quarter incurred the non-deductible input value-added tax amount. Accordingly, a business establishment that pays VAT by the tax credit method has an uncredited input value-added tax amount in a month or a quarter, and shall not refund VAT but deduct in the following period

Enterprises are requested to base themselves on the actual situation of their tax declaration and contact their supervisory tax authorities for guidance on compliance with tax laws.