The Ministry of Finance recently issued Circular No. 92/2010/TT‐BTC (dated June 17, 2010) providing guidelines on the procedures for renewal of the term of payment of taxes and refund of Value Added Tax on special‐use machinery, equipment and means of transport falling within the category of technological production lines and building materials which doestic manufacturers have not been able to manufacture and which need to be imported for creation of fixed assets for enterprise.
Accordingly, business establishments newly set up from investment projects which are currently in the investment stage but not yet put intooperation and business establishments currently operative and having investment projects (construction of new production lines, expansion of business, technology innovation, ecological environment improvement, enhancement of production capacity) and importing special‐use machinery, equipment and means of transport falling within the category of technological production lines and building materials which doestic manufacturers have not been able to manufacture and which need to be imported for creation of fixed assets are entitled t elect to apply renewal of the term of payment of VAT on imports and refund of VAT.
Specifically, business establishments paying taxes by the deduction method and having obtained business registration certificates or investmnt certificates, investment licenses (work permits); having a seal as stipulated by the laws, keeping accounting books and documents in accordance with the laws on accounting; having deposit accounts with banks under the tax code of the business establishments; having technological production lines and building materials which domestic manufacturers have not been able to manufacture an which need to be imported for creation of fixed assets at a total value of VND200 billion or more. Investment projects for production and trade of goods and services subject to VAT or projects for production and trade of good and services both subject to VAT and not subject to VAT.
Renewal of the term of payment of taxes applies from the first lot of imported goods arriving at the port and which is worth lss than VND200 billion. Goods are cleared right upon completion of field inspection by the customs office. Renewal of the term of payment of taxes and clearance of goods do not depend on the situation of liabilities of import duties nd do not require guarantee from credit institutions.
A dossier for renewal of the term of payment of taxes includes a written request for renewal of the term of payment of VAT, tax declaration documents of the tax amount for which the renewal is applied (1 photocopy), the Agreement on purchase of imported goods for which the renewal of the term of payment of VAT is requested; in case there are many agreements, all the agreements (1 photocopy) and the Written Approval of the project or the investment plan shall be submitted. When the dossier for renewal has been sufficient, accurate and for the right subject as stipulated, the customs office will notify the taxpayer in writing of its consent on renewal within 3 (three) working days from the date of receipt of a sufficient dossier.
For refund of VAT, the tax authority is responsible for checking and comparison of evidence of tax payments against the figures declared in the tx refund dossier of the business establishments and making a decision on tax refund within 3 (three) working days from the date of receipt of evidence of payment of VAT on imported goods.
ĐPT - DCLaw
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