The Ministry of Finance has just issued Circular 130/2016/TT-BTC guiding Decree No. 100/2016/ND-CP detailing the Law amending and supplementing a number of articles of the Law on Value Added Tax (VAT), the Law on Special Consumption Tax, and the Law on Tax Administration.
Regarding VAT, according to Circular 130/2016/TT-BTC (Circular 130), businesses paying VAT using the deduction method, if they have input VAT that has not been fully deducted in the month (for monthly declarations) or in the quarter (for quarterly declarations), may deduct it in the following period.
In cases where a business has uncredited VAT amounts arising before the July 2016 tax period (for monthly declarations) or before the third quarter of 2016 (for quarterly declarations), and meets the conditions for VAT refund (as guided in Clause 1, Article 18 of Circular No. 219/2013/TT-BTC), the tax authority will process the refund in accordance with the law.
Newly established businesses from investment projects that have registered for business and registered to pay VAT using the deduction method, or oil and gas exploration and development projects that are in the investment phase and have not yet commenced operations, if the investment period is one year or more, are entitled to a VAT refund on goods and services used for investment on an annual basis (except for cases guided in point c, Clause 3, Article 1 of this circular).
In cases where the cumulative VAT on goods and services purchased for investment purposes is 300 million VND or more, the VAT is refundable.
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