Official Letter No. 19/CTTQU-TTHT on VAT refund for exported goods and services.

GENERAL DEPARTMENT OF TAXATION BINH PHUOC TAX DEPARTMENT No: 19/CTTQU-TTHT Regarding VAT refund for exported goods and services

SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness Tuyen Quang, January 8, 2025

 

To:	Woodsland Tuyen Quang Joint Stock Company Tax code: 5000815668 Address: Thang Quan Industrial Cluster, Yen Son Town, Yen Son District, Tuyen Quang Province

The Tax Department of Tuyen Quang Province has received Official Letter No. 8424/CV-WLTQ dated December 23, 2024 from Woodsland Tuyen Quang Joint Stock Company (the "Company") regarding the VAT refund for exported goods. Regarding this matter, the Tax Department of Tuyen Quang Province provides the following opinion:

According to Article 2 of Circular No. 25/2018/TT-BTC dated March 16, 2018, by the Ministry of Finance, which guides Decree No. 146/2017/ND-CP dated December 15, 2017, by the Government, and amends and supplements certain provisions of Circular No. 78/2014/TT-BTC dated June 18, 2014, and Circular No. 111/2013/TT-BTC dated August 15, 2013, by the Ministry of Finance, the regulations state:

"Article 2. Amendment and supplementation of Clause 4, Article 18 of Circular No. 219/2013/TT-BTC dated December 31, 2013, by the Ministry of Finance (amended and supplemented by Circular No. 130/2016/TT-BTC dated August 12, 2016, by the Ministry of Finance) as follows:

4. VAT refund for exported goods and services

a) Business establishments in the month (for those filing monthly) or in the quarter (for those filing quarterly) with exported goods or services, including cases where goods are imported and then exported to a non-taxable zone or exported abroad, with VAT input tax not yet deducted from 300 million VND or more, shall be refunded VAT on a monthly or quarterly basis. If the VAT input tax in the month or quarter is less than 300 million VND, it will be deducted in the next month or quarter.

If a business establishment has both exported goods/services and domestically consumed goods/services, it must separately account for the VAT input tax used for production and business activities of exported goods and services. If it is not separately accounted for, the VAT input tax of exported goods/services will be determined based on the ratio of the revenue from exported goods/services to the total revenue from goods and services in the tax declaration period from the previous refund period to the current refund period.

The VAT input tax of exported goods/services (including separately accounted and allocated VAT input tax as mentioned above), after offsetting the VAT payable for domestically consumed goods/services, remaining from 300 million VND or more, will be refunded for exported goods/services. The refunded VAT of exported goods/services will not exceed the revenue from exported goods/services multiplied by 10%.

Eligible cases for VAT refund in certain export situations are as follows: For outsourced export cases, it is the establishment with goods for export; for processing contracts, it is the establishment signing an export processing contract with foreign parties; for exported goods for construction projects abroad, it is the enterprise with goods and materials exported for construction projects abroad; and for goods exported locally, it is the business establishment with locally exported goods."

Based on the above provisions and the tax refund history of Woodsland Tuyen Quang Joint Stock Company (Decision No. 623/QD-CT dated October 10, 2016, by the Tax Department of Tuyen Quang Province), if the Company has both exported goods/services and domestically consumed goods/services, and the VAT input tax not yet deducted is from 300 million VND or more, and meets the conditions for deduction and refund of VAT on exported goods and services according to tax regulations, the VAT refund will be processed as follows:

• If the Company separately accounts for VAT input tax for production and business activities related to exported goods/services, the refund amount will be the VAT input tax not yet deducted from 300 million VND or more, and not exceeding the revenue of exported goods/services multiplied by 10%.

• If the Company does not separately account for VAT input tax for production and business activities related to exported goods/services, the VAT input tax of exported goods/services will be determined based on the ratio of revenue from exported goods/services to the total revenue from goods and services in the tax declaration period from the third quarter of 2016 to the tax filing period for the refund request in August 2024, and will not exceed the revenue of exported goods/services multiplied by 10%.

The Tax Department of Tuyen Quang Province responds to Woodsland Tuyen Quang Joint Stock Company for its reference and implementation in accordance with the regulations cited in this document.

 

Recipient: As above; Leadership of the Tax Department; Departments: NVDTPC, TTKT, KK; Tax Department's website; Archive: VT, TTHT. (Trade 03b).

FOR THE DIRECTOR OF THE TAX DEPARTMENT DEPUTY DIRECTOR       Vu Hong Diep

See details here.