Legal News

[Taxation] Information on VAT refunds for new investment projects in other provinces

2024/10/31

The General Taxation Bureau issued Official Letter No. 4566/TCT-KK on October 14, 2024, providing guidance on VAT refunds for new investment projects in other provinces. The letter states that companies with new investment projects in provinces or cities other than their head office location are eligible to apply for refunds under certain conditions. The refund requirements are as follows:
• The project has already commenced operations, no VAT refund application was submitted prior to commencement, and the VAT is carried forward in the regular VAT declaration (Form 01/GTGT) for business activities.
• The remaining input VAT on exported sales after deductions exceeds 3 billion VND.
• The amount of refundable input VAT must not exceed 10% of export sales.

If a company has a new investment project in another province and the project is in the pre-operation phase, it may be eligible for VAT refunds if the conditions are met. However, the practical difficulties of VAT refunds are high, and there are regional differences, so eligible companies are advised to carefully review the refund criteria and take appropriate action at the appropriate time.

References:
• Official Letter No. 4566/TCT-KK dated October 14, 2024
• Official Letter No. 10855/CTBDU-TTKT3 dated June 21, 2022
• Article 18, Paragraph 3 of Circular No. 219/2013/TT-BTC
• Article 2 of Circular No. 25/2018/TT-BTC