Taxation is a complex field that requires keeping up to date with the latest legislation. Hong Bang Law has many employees who are experts with long experience in the tax field, providing customers with quality and reliable services.

Therefore we would like to send you some necessary information about the cases of VAT refund according to the law.

Pursuant to Article 13 of the Law on Value-Added Tax 2008 (some items are amended and supplemented by the 2013 Law on Value-Added Tax), detailed instructions are provided in Clause 3, Article 1 of Circular 130/2016/TT- BTC, objects and cases of value added tax refund include:

1. Business establishments that pay VAT by the tax credit method

Enterprises that pay VAT by the tax credit method if they have input VAT that has not been fully deducted in the month (for the case of monthly declaration) or in the quarter (for the case of quarterly declaration), may be deducted in the next period.

2. New business establishments established from investment projects

Newly established enterprises from investment projects registered for business, registered to pay VAT by deduction method, or projects of prospecting, exploration and development of oil and gas fields which are in the investment stage, not yet put into operation if the investment period is 01 year or more, they will be refunded VAT on goods and services used for the investment each year, unless the business establishment is not entitled to VAT refund but is transferred tax that has not yet been deducted from the investment project according to the law on investment to the next period.

3. VAT refund for investment projects

Conditions for VAT refund include:

• Operating business establishments are subject to VAT by the credit method;
• Business establishments shall make separate declarations for investment projects and transfer input VAT of the investment projects to offset the VAT declaration of production and business activities being carried out for the project. investment in the same province/city in the investment stage or other investment project in the province/city under central authority where the head office is located, in the investment stage, not yet registered for business, not yet registered for tax ;
• The transferred VAT amount of an investment project is at most equal to the payable VAT amount of production and business activities in the period of the business establishment;
• After clearing, if the input VAT amount of the investment project that has not been fully deducted is 300 million VND or more, the VAT will be refunded to the investment project, if it is less than 300 million VND, it will be transferred to the number of VND 300 million. input VAT of the investment project of the next declaration period;
• Except for projects to build houses for sale or rent without forming fixed assets and point c, clause 3, article 1 of Circular 130/2016/TT-BTC

4. Tax refund for exported goods and services

• Business establishments in a month (for the case of monthly declaration), a quarter (for the case of a quarterly declaration) have exported goods and services whose input value-added tax amount has not yet been deducted from VND 300 million or more will be refunded value added tax on a monthly or quarterly basis; In case the input value-added tax amount that has not yet been deducted is less than VND 300 million in a month or quarter, it will be deducted in the next month or quarter.
• If a business establishment has both exported goods and services in the month/quarter and has goods and services sold domestically, the business establishment must separately account the input VAT used for the production and trading of goods and services. export goods and services. In case it is not possible to do separate accounting, the input value-added tax amount of exported goods and services is determined according to the ratio between the turnover of exported goods and services to the total turnover of goods and services. of value-added tax return periods from the tax return period following the preceding tax refund period to the current tax refund claim period. Case of conversion, merger, consolidation, division, separation, dissolution, bankruptcy, termination of operation
• Business establishments that pay value-added tax by the tax credit method are entitled to a refund of value-added tax upon ownership transformation, enterprise transformation, merger, consolidation, division, separation, dissolution, bankruptcy, terminate operations with overpaid value added tax or input value added tax that has not been fully deducted.
• Business establishments in the investment stage that have not yet commenced production and business activities but must be dissolved, bankrupt or terminated operations have not yet incurred value-added tax on output of main business activities under the investment project. the amount of value added tax declared, deducted or refunded has not yet been adjusted. Business establishments must notify the tax authorities directly managing the dissolution, bankruptcy or termination of operation as prescribed.
• In case a business establishment completes all procedures in accordance with the law on dissolution or bankruptcy, the refunded VAT amount shall comply with the provisions of the law on dissolution, bankruptcy and management. tax administration; for the VAT amount that has not been refunded, the tax refund will not be processed.
• In case a business establishment terminates its operation and does not generate output VAT from its main business activities, it must pay back the paid tax amount.
• be remitted to the state budget. In case there is a sale of property subject to VAT, the corresponding input VAT amount of the sold property is not required to be adjusted.

5. Programs and projects using non-refundable official development assistance (ODA) capital or non-refundable aid and humanitarian aid.

• For projects using non-refundable ODA: the program/project owner or main contractor or organization designated by the foreign sponsor to manage the program/project will be refunded the VAT amount paid. for goods and services purchased in Vietnam for use in programs and projects.
• Organizations in Vietnam that use humanitarian aid money from foreign organizations and individuals to purchase goods and services in service of programs and projects of non-refundable aid or humanitarian aid in Vietnam may refund of VAT paid for such goods or services.
• Persons entitled to diplomatic privileges and immunities according to the provisions of the law on diplomatic incentives and immunities who purchase goods and services in Vietnam for use will be entitled to a refund of the paid value-added tax stated on the invoice or on the payment voucher write the payment price inclusive of value-added tax.
• Foreigners and overseas Vietnamese holding passports or entry papers issued by foreign competent authorities are entitled to tax refunds on goods purchased in Vietnam and brought with them on exit. The VAT refund shall comply with the guidance of the Ministry of Finance on VAT refund for goods purchased by foreigners and Vietnamese residing abroad in Vietnam and brought with them when leaving the country.
• A business establishment has a decision on tax refund processing issued by a competent authority in accordance with law and in case of value-added tax refund under an international treaty to which the Socialist Republic of Vietnam is a contracting party.

6. Persons entitled to diplomatic privileges and immunities according to the provisions of the law on diplomatic incentives and immunities who purchase goods and services in Vietnam for use will be entitled to a refund of the VAT already paid on the invoice. increase or on the payment voucher write the payment price inclusive of VAT.

7. Foreigners and overseas Vietnamese who hold passports or entry papers issued by foreign competent authorities are entitled to tax refunds on goods purchased in Vietnam and brought with them on exit. The VAT refund shall comply with the guidance of the Ministry of Finance on VAT refund for goods purchased by foreigners and Vietnamese residing abroad in Vietnam and brought with them when leaving the country.

Investment projects are not entitled to a VAT refund but are entitled to carry over the tax to the next period

Business establishments are not entitled to a VAT refund but are entitled to carry over the tax amount that has not yet been deducted from the investment project according to the law on investment to the next period in the following cases:

• The investment project of the business establishment does not contribute the full amount of charter capital as registered in accordance with the law. Applications for tax refund of investment projects submitted from July 1, 2016 by business establishments but by the date of submission do not contribute the full amount of charter capital as registered as prescribed by law, shall not be eligible. tax refund.
• An investment project of a business establishment in a conditional business line when the business conditions are not fully satisfied as prescribed in the Law on Investment is an investment project of a business establishment in this line of business. conditional business, but the business establishment has not yet been granted a business license in the line of business with which investment is conditional; has not yet been granted a certificate of eligibility to conduct business in conditional business lines; there is no document from a competent state agency permitting business investment in conditional business lines; or have not yet met the conditions to conduct conditional business investment without the need for certification and approval in the form of documents in accordance with the provisions of the law on investment.
• An investment project of a business establishment in a conditional business line or line that does not guarantee the maintenance of business conditions during its operation is an investment project of a business establishment that conducts business in the investment line or business line. conditional business, but in the course of operation, the business establishment has its business license revoked; having the certificate of satisfaction of business conditions revoked in the conditional business lines; having their documents revoked by competent state agencies on business investment in conditional business lines;
• Or in the course of operation, the business establishment fails to satisfy the conditions for making a conditional business investment as prescribed by the law on investment, the time of non-refundable VAT is counted from the time the business establishment The business establishment has one of the above-mentioned papers revoked or from the time the competent state agency inspects and discovers that the business establishment fails to satisfy the conditions on conditional business investment.
• Investment projects on the exploitation of natural resources and minerals licensed from July 1, 2016 or investment projects on production of goods and services for which the total value of resources and minerals plus energy costs accounts for at least 51 % of product cost stay up according to the investment project.

VAT refund service of Hong Bang Law

• Advising clients on tax laws in general and value-added tax laws in particular;
• Advising customers on regulations and the order, procedures and documents on VAT refund;
• Carry out procedures when authorized by customers, including: preparing, completing and submitting dossiers to competent state agencies;
• On behalf of clients to amend and supplement dossiers, directly work with competent authorities upon request;
• Perform other related services when required by customers.

In addition to the above services, Hong Bang Law also provides the following services:

• Consulting services and initial tax declaration;
• Monthly tax declaration service;
• Quarterly tax declaration service;
• Tax declaration service according to the time of arising;
• Services of making and declaring year-end financial statements;
• Contractor tax declaration service;
• Year-by-year tax declaration services: Reasonable cost and integrated package of all tax declaration activities of enterprises, completing books and documents, closing and storing business books;
• Tax declaration services at the request of businesses.

If you need more detailed advice and answers as well as how to access this service, please contact directly our Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35.53.53 or call the toll free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com

Wishing you and your family good health, peace and success!

Best regards!