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| Regulations concerning VAT refund in case of change of business ownership, business transformation, merger, consolidation, split-up or termination would also be annulled__Photo: VNA |
Producers, traders and service providers subject to the value-added tax (VAT) rate of 5 percent would be eligible for VAT refund if they have a not-yet-deducted input VAT amount of VND 300 million (USD 12,200) or more after a period of 12 months.
This new provision is added to the latest draft of the amended Law on Value-Added Tax recently released by the Ministry of Finance (MOF).
The draft law specifies that investment projects eligible for VAT refund are new or expansion projects that are currently in the investment phase, including also projects subject to phasing or consisting of different items, but excluding those not forming fixed assets. Oil and gas prospecting, exploration and development projects currently in the investment phase would also be qualified for VAT refund if their input VAT amounts arising in the investment phase have not been refunded and their remaining amount of input VAT that has not yet been fully deducted is VND 300 million or more.
The MOF proposes abolishing the provision on denying VAT refund for investment projects of businesses that fail to contribute sufficient charter capital as registered. Meanwhile, projects of businesses operating in conditional business lines would not be eligible for VAT refund in case they have not yet satisfied the law-prescribed conditions.
The draft law also removes regulations rejecting refund of VAT for goods imported and then exported and a number of exported goods eligible for tax refund first and inspection later under the Law on Tax Administration. Regulations concerning VAT refund in case of change of business ownership, business transformation, merger, consolidation, split-up or termination would also be annulled.
In addition, the draft clarifies the responsibilities of tax offices and taxpayers in the VAT refund process, saying that the former would be held responsible for the validity of tax refund dossiers and the latter, for the accuracy of documents included in such dossiers.
The Minister of Finance would be vested with the authority to specify conditions for tax refund, according to the draft.- (VLLF)
