THE MINISTRY OF FINANCE
Circular No. 134/2014/TT-BTC dated September 12, 2014 of the Ministry of Finance guiding the procedure for extension of VAT payment and refund for import machines and equipments for investment project’s fix assets
Pursuant to the Law No. 13/2008/QH12 dated June 03, 2008 on VAT and the Law No. 31/2013/QH13 dated June 19, 2013 on amending several provisions of the Law on VAT;
Pursuant to the Law No. 78/2006/QH11 dated November 29, 2006 on Tax Administration and the Law No.21/2012/QH13 dated November 20, 2012 on the amendments to the Tax Administration Law;
Pursuant to the Government’s Decree No.209/2013/ND-CP dated December 18, 2013 on providing instructions on the implementation of several provisions of the Law on VAT;
Pursuant to the Government’s Decree No. 83/2013/ND-CP dated July 22, 2013 on detailing the implementation of several provisions of the Law on Tax Administration and the Law on the amendments to the Law on Tax Administration;
Upon implementing the Resolution No. 63/NQ-CP dated August 25, 2014 of the Government on tax solutions to remove problems and difficulties and promote the business development;
At the request of the Director of the Tax Policy Department,
The Minister of Finance hereby promulgates this Circular on the procedure for the extension of VAT payment and refund for imported machinery and equipment used as fixed assets in investment projects.
Article 1. Scope of adjustment
1. Enterprises that are newly established from investment projects and have yet to be brought into operation or those that have been already brought into operation, who are taking part in investment projects (such as the installation of new production line, operational expansion, technological innovation, environmental improvement and production capacity enhancement) by means of directly importing or giving the authorization to import machinery and equipment used as fixed assets in such investment projects but are also faced with financial difficulties such as failure to distribute a sufficient amount of money for the VAT payment at the importation stage; reliance on loans from commercial banks on the importation of machinery and equipment for production and trading purposes; in case of great losses incurred by the delayed customs clearance of commodities leading to the suspended and extended investment, they are entitled to choose between VAT payment extension at the importation stage and VAT refund according to instructions enshrined on conditions that the following requirements must be entirely fulfilled:
a) Enterprises, who apply for their VAT payment registration under the credit-invoice method, has been already granted the certificate of business registration or investment certificate, investment license (or the practicing certificate); hold legitimate stamps, maintain bookkeeping and accounting systems in compliance with the accounting law; open deposit accounts at banks classified by their tax identifications;
b) Total value of imported machinery and equipment used as fixed assets is worth equal to or greater than VND 100 billion;
c) Any investment project is developed to produce, trade or supply taxable commodities and services.
