THE MINISTRY OF FINANCE
-------
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
---------
No. 205/2009/TT-BTC
Hanoi, October 26 2009
 
CIRCULAR
GUIDING THE PROCEDURES FOR THE REFUND OF VALUE-ADDED TAX ON EQUIPMENT, MACHINERY, SPECIAL-USE VEHICLES, CONSTRUCTION SUPPLIES, RAW MATERIALS, SUPPLIES AND SEMI-FINISHED PRODUCTS INCLUDED IN TECHNOLOGY LINES WHICH CANNOT BE PRODUCED AT HOME AND NEED TO BE IMPORTED TO CREATE FIXED ASSETS OF ENTERPRISES
THE MINISTRY OF FINANCE
Pursuant to June 3, 2008 Law No. 13/2008/QH12 on Value-Added Tax (VAT);
Pursuant to November 29, 2006 Law No. 78/2006/QH11 on Tax Administration;
Pursuant to the Government's Decree No. 123/2008/ND-CP of December 8, 2008, detailing and guiding the implementation of a number of articles of the Law on Value-Added Tax;
Pursuant to the Governments Decree No. 85/2007/ND-CP of May 25, 2007, detailing the implementation of a number of articles of the Law on Tax Administration;
Pursuant to the Government's Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
The Ministry of Finance guides the procedures for the refund of VAT on equipment, machinery, special-use vehicles, construction supplies, raw materials, supplies and semi-finished products included in technology lines which cannot be produced at home and need to be imported to create fixed assets of enterprises as follows:
Article 1. Scope of application
1. Business establishments which are newly set up under investment projects and have made business registration but are making investment preparation and have not yet been put into operation or operating business establishments which have investment projects on setting up production establishments in provinces or centrally run cities other than the localities where they are headquartered but these projects are making investment preparations and have neither yet been put into operation nor made business registration and tax registration, when importing equipment, machinery, special-use vehicles, construction materials, raw materials, supplies and semi-finished products included in technology lines which cannot be produced at home and need to be imported to create their fixed assets, may choose to apply the procedures for VAT refund under the guidance in this Circular if they fully meet the following conditions:
- They have registered for VAT payment by the credit method and have been granted business registration certificates or investment licenses (practice permits); have a seal in accordance with law and keep accounting books and documents in accordance with the accounting law; and have bank accounts with their tax identification numbers;
- The VAT amount payable upon import of equipment, machinery, special-use vehicles, construction materials, raw materials, supplies and semi-finished products included in technology lines which cannot be produced at home and need to be imported to create fixed assets is VND 200 million or more.

>> See also:  Consultancy service on wage regulation of enterprise

- Their investment projects are of national importance which are considered and decided by the National Assembly or group-A investment projects specified in Article 2 of the Government's Decree No. 12/2009/ND-CP of February 12, 2009, on the management of investment projects on construction of works.
- Theirs are investment projects on production of and trading in VAT-Iiable goods and services or both VAT-liable and non-VAT-liable products and services.
2. Goods which cannot be produced at home and need to be imported to create fixed assets specified in Clause 1 of this Article will be deter­mined based on the list of equipment, machinery, spare parts and special-use vehicles which can be produced at home, the list of construction materials which can be produced at home and the list of raw materials, supplies and semi-finished products which can be produced at home, issued by the Ministry of Planning and Investment. In case production and business establishments import complete technology lines which include both equipment, machinery, special-use vehicles, construction materials, raw materials, supplies and semi-finished products which cannot be produced at home and those which can be produced at home, they may carry out procedures for tax refund under the guidance in this Circular for all equipment, machinery, special-use vehicles, construction materials, raw materials, supplies and semi-finished products included in technology lines.
3. Goods which cannot be produced at home and need to be imported specified in Clauses 1 and 2 of this Article do not include: special-use fixed assets used for the manufacture of weapons and ammunitions for defense and security; fixed assets which are houses used as offices and special-use equipment in service of credit activities of credit institutions, reinsurance, life insurance and securities companies, hospitals and schools: civil aircraft and yachts not used for passenger and cargo transportation or tourism and hotel business.
Article 2. Procedures for and order of VAT refund
1. A dossier of VAT refund comprises:
Click Download  to see full text

>> See also:  Consultancy for developing regulations for enterprises