3 CASES WHERE VAT IS NOT REFUNDED BUT CARRIED FORWARD TO THE SUBSEQUENT PERIOD
The Decree No. 49/2022/ND-CP amending and supplementing a number of the Government's Decree No. 209/2013/ND-CP dated December 18, 2013, detailing and guiding a number of articles of the Law on Value-Added Tax, which was amended and supplemented under Decree No. 12/2015/ND-CP, Decree No. 100/2016/ND-CP and Decree No. 146/2017/ND-CP is issued on July 29, 2022 by the Government.
Accordingly, a business establishment which has already made business registration and registers to pay value-added tax (VAT) by the tax credit method, has new investment projects in the same province or city, or in a province or city other than the one where it is headquartered (except for some cases) at the investment stage, or oil and gas prospecting, exploration and development projects still at the investment stage, with the input VAT amount of goods and services arising in the accumulated investment stage not yet fully credited that is valued at VND 300 million or more, shall be entitled to VAT refund.
Also in accordance with this Decree, 3 cases where business establishments are not entitled to value-added tax refund but may carry forward the investment projects’ tax amount not yet credited as prescribed by the investment law to the subsequent period include:
Firstly, natural resources or mineral exploitation investment projects licensed from July 01, 2016, or goods production investment projects with the total value of natural resources or minerals plus the energy cost making up 51% or more of the cost price of the products under investment projects, except for oil and gas prospecting, exploration and development projects as mentioned above.
Secondly, investment projects of establishments engaged in conditional production and business lines while failing to fully satisfy business conditions as prescribed by law.
Thirdly, investment projects of establishments engaged in conditional production and business lines while failing to fully maintain business conditions throughout their operation.
This Decree takes effect from September 12, 2022.
