Title: Circular No. 134/2014/TT-BTC dated September 12, 2014, procedure for the deferment of VAT payment and refund for imported machinery and equipment used as fixed assets in investment projects

Type: Circular

Issuing Agency: Ministry of Finance

Responsible Agency: Ministry of Finance

Issuing Date: 12-09-2014

Governing scope

1. Enterprises that are newly established from investment projects and have yet to be brought into operation or those that have been already brought into operation, who are taking part in investment projects (such as the installation of new production line, operational expansion, technological innovation, environmental improvement and production capacity enhancement) by means of directly importing or giving the authorization to import machinery and equipment used as fixed assets in such investment projects but are also faced with financial difficulties such as failure to distribute a sufficient amount of money for the VAT payment at the importation stage; reliance on loans from commercial banks on the importation of machinery and equipment for production and trading purposes; in case of great losses incurred by the delayed customs clearance of commodities leading to the suspended and extended investment, they are entitled to choose between VAT payment deferment at the importation stage and VAT refund according to instructions enshrined on conditions that the following requirements must be entirely fulfilled:

a) Enterprises, who apply for their VAT payment registration under the credit-invoice method, has been already granted the certificate of business registration or investment certificate, investment license (or the practicing certificate); hold legitimate stamps, maintain bookkeeping and accounting systems in compliance with the accounting law; open deposit accounts at banks classified by their tax identifications;

b) Total value of imported machinery and equipment used as fixed assets is worth equal to or greater than VND 100 billion;

c) Any investment project is developed to produce, trade or supply taxable commodities and services.

2. Imported machinery and equipment used as fixed assets in investment projects are not governed by this Circular, including those used as fixed assets intended for the production of weapons and military equipment to serve the purpose of national defence and security; fixed assets, machinery and equipment owned by credit institutions, reinsurance enterprises, life insurance companies, securities corporations, health facilities and training institutions; civil aircrafts and yachts that do not serve the purpose of cargo and passenger transportation, and hospitality and tourism.

For further details, please visit http://customsnews.vn/20.docs

 

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