THE MINISTRY OF FINANCE

THE GENERAL DEPARTMENT OF TAXATION

Official Dispatch No. 943/TCT-CS dated March 25, 20013 of the General Department of Taxation on tax policies for non-returnable ODA project
Respectfully to: United Nations Industrial Development Organization (UNIDO)
(72 Ly Thuong Kiet, Hoan Kiem district, Hanoi)
On answering the official dispatch on December 03, 3012 of the United Nations Industrial Development Organization (UNIDO) guiding the trading duty free goods and services to non-returnable ODA project managed by UNIDO, the General Department of Taxation has opinions as follows:
At point 2, section II of the Circular No. 123/2007/TT-BTC dated October 23, 2007 of the Ministry of Finance guiding the implementation of tax policy and tax incentives for programs and projects funded with Official Development Assistance (ODA) promulgating tax policies and tax priorities applicable to non-returnable ODA projects as follows:
“2.1. Non-refundable ODA project owners shall be refunded VAT amounts they have paid for goods and services bought in Vietnam if their approved contracts signed with principal contractors cover VAT and the project owners are not provided with state funds for paying VAT. The VAT refund is effected under the guidance at Point 4, Section V of this Circular.
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2.2. If the donor has a representative office in Vietnam and directly purchases goods and services for the execution of a non-refundable ODA project or assigns it to the non-refundable ODA project owner, the donor will be refunded the paid VAT amount. The VAT refund is effected under the guidance at Point 4, Section V of this Circular.