Official Letter 24/CTDNO-TTHT: Declaration and VAT Refund for Investment Projects

GENERAL DEPARTMENT OF TAXATION DAK NONG PROVINCIAL TAX DEPARTMENT No: 24/CTDNO-TTHT Regarding VAT Declaration and Refund for Investment Projects

SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness Đak Nong, January 3, 2025

 

To:	Dai Luc Packaging Joint Stock Company Tax code: 0304381815 Address: 49/23 Luy Ban Bich, Tan Thoi Hoa Ward, Tan Phu District, Ho Chi Minh City.

The Dak Nong Provincial Tax Department has received Official Letter No. 0312/DL-2024 dated December 16, 2024, from Dai Luc Packaging Joint Stock Company (hereinafter referred to as the Company) regarding the VAT declaration and refund for its investment project. On this matter, the Tax Department has the following opinions:

1. On VAT Refund for Investment Projects

• According to Clause 1, Article 13 of Law No. 13/2008/QH12 dated June 3, 2008, on VAT (as amended by Clause 3, Article 1 of Law No. 106/2016/QH13 dated April 6, 2016), the cases of VAT refund are specified as follows:

  “A business establishment that is registered to pay VAT by credit method and has a new investment project in its investment phase, with VAT on goods and services purchased for investment that has not been deducted, and with the remaining VAT of 300 million VND or more, is eligible for VAT refund.”

• According to Clause 3, Article 1 of Circular No. 130/2016/TT-BTC dated August 12, 2016, by the Ministry of Finance regarding VAT refund:

  "b) In the case of an active business establishment subject to VAT under the credit method with a new investment project (except for those specified in Clause c, Article 3 of this Circular, and excluding projects that build houses for sale or lease without forming fixed assets), located in a province or centrally-run city different from where its head office is located, in the investment phase and not yet operational, not yet registered for business, or tax registration, the business establishment must submit a separate tax declaration for the investment project, and also transfer the VAT on goods and services purchased for the project to offset the VAT payable from the ongoing business activity. The transferred VAT for the investment project will be limited to the VAT payable on the current business activity of the establishment.

  After offsetting, if the VAT on purchased goods and services for the new investment project is not fully deducted and remains 300 million VND or more, the VAT will be refunded for the investment project.

  After offsetting, if the VAT on purchased goods and services for the new investment project is not fully deducted and is less than 300 million VND, it will be carried over to the next declaration period.

  In the case of a business establishment establishing a Project Management Board or branch in another province or centrally-run city to directly manage one or more investment projects in multiple locations, the Project Management Board or branch with a legal seal, maintaining accounting books as prescribed by law, with a bank account, tax registration, and a tax code, will submit a separate tax declaration and VAT refund request to the local tax authority where the project is located. When the investment project for establishing the enterprise is completed and has completed business registration and tax registration procedures, the business establishment, as the project owner, must aggregate the VAT arising, the refunded VAT, and the unreimbursed VAT for the project to hand over to the newly established enterprise for VAT declaration and payment."

Based on the above regulations and guidance, in the case of Dai Luc Packaging Joint Stock Company establishing a branch in Đắk Nông Province, it must submit a separate tax declaration and VAT refund request to the directly managing tax authority (Cư Jut - Krông Nô Tax Department). When the Company submits the VAT refund request for the investment project in Đắk Nông, if it complies with the regulations in the Law on Investment, the Law on Tax Administration, the VAT Law, and the relevant VAT refund regulations, it will be eligible for VAT refund. The Tax Department recommends that Dai Luc Packaging Joint Stock Company refer to the above legal provisions and compare them with the company's actual situation to determine its eligibility for VAT refund.

2. On VAT Declaration for Investment Projects

• According to Article 7 and Article 11 of Decree No. 126/2020/ND-CP dated October 19, 2020, by the Government, detailing some provisions of the Law on Tax Administration regarding the tax declaration documents and locations for submitting tax declaration documents for investment projects in other provinces:

  Article 7. Tax Declaration Documents

  ...

  2. Tax declaration documents for each type of tax, taxpayer, in accordance with the tax calculation method, tax period (month, quarter, year, occurrence, or finalization). If the taxpayer has multiple business activities with the same type of tax, a consolidated tax declaration is made, except for the following cases:

  ...

  d) A taxpayer who has a VAT refundable investment project must submit a separate VAT declaration for each investment project and must offset the VAT on goods and services purchased for each investment project against the VAT payable (if any) for the ongoing business activities during the same tax period.

  Article 11. Location for Submitting Tax Declaration Documents

  Taxpayers comply with the location of tax declaration submission as per Clause 1, Clause 2, and Clause 3, Article 45 of the Law on Tax Administration and the following provisions:

  1. The location for submitting tax declaration documents for taxpayers with multiple business activities in multiple provinces is the tax authority where the business activities are located, other than the province where the head office is located, for the following cases:

  a) VAT declaration for investment projects as specified in Clause d, Article 7 of this Decree at the location where the investment project is located."

Based on the above regulations, in the case of Dai Luc Packaging Joint Stock Company establishing a branch in Đak Nong, it must submit a VAT declaration at the directly managing tax authority (Cư Jut - Krông Nô Tax Department) as specified in Clause 1, Article 11 of Decree No. 126/2020/ND-CP. The Company must submit the VAT declaration for investment projects using Form 02/GTGT as prescribed in Circular No. 80/2021/TT-BTC dated September 29, 2021, by the Ministry of Finance and must also offset the VAT on goods and services purchased for each investment project against the VAT payable (if any) for the ongoing business activities during the same tax period.

The Đak Nong Provincial Tax Department responds for Dai Luc Packaging Joint Stock Company to know.

 

Recipients: As above; Leaders of the Tax Department; NVDTPC Department, KK Department; CCT KV Cư Jut - Krông Nô; Tax Department's website; Archive: VT, TTHT (02b).

On behalf of the DIRECTOR OF THE TAX DEPARTMENT DEPUTY DIRECTOR       Nguyen Trung Hieu

See details here.