CAN INVESTMENT PROJECTS RECEIVE VAT REFUNDS?
QUESTION
Dear TLK Law Firm, I currently have questions and hope to hear from you as follows: My business is implementing a new investment project in Vietnam. As far as I know, in some cases, when paying value added tax using the deduction method, the payer will receive a tax refund. So let me ask, can investment projects receive VAT refunds? I hope your company can help me answer this issue. Thank you!
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Thank you for your trust and sending questions to TLK Law Firm. Based on legal regulations and practical solutions, we would like to send you the following consulting content:
LEGAL BASIS
1. Document consolidating the Law on Value Added Tax No.: 01/VBHN-VPQH passed by the National Assembly on April 28, 2016;
2. Investment Law No. 61/2020/QH14 passed by the National Assembly on June 17, 2020;
3. Circular No. 219/2013/TT-BTC issued by the Ministry of Finance on December 31, 2013 guiding the implementation of value-added tax law and Decree No. 209/2013/ND-CP dated December 18 2013 of the government detailing and guiding the implementation of a number of value-added tax laws;
4. Other legal documents providing relevant guidance.
CONSULTATION CONTENT
Our country's economic market is increasingly integrating with the world market, attracting many large domestic and foreign investors. Investment projects are implemented with large capital resources, bringing many benefits. To create favorable conditions for investors, our country's law has stipulated value-added tax refunds for subjects that meet the set conditions. So can investment projects receive VAT refunds? This is the question that most customers send to TLK Law Firm.
Therefore, through this article, we - TLK Law Firm will answer your questions about whether investment projects are VAT refundable.
Photo 1. Can investment projects receive VAT refunds?_Hotline: 0972118764
I. SOME IMPORTANT LEGAL ISSUES RELATED TO VAT REFUNDS FOR INVESTMENT PROJECTS
1. What is an investment project?
According to the Investment Law 2020, an investment project is a collection of proposals to invest medium or long-term capital to conduct business investment activities in a specific area, within a specified period. Accordingly, there are the following types of investment projects:
(1) Expansion investment project is an investment project that develops an active investment project by expanding scale, increasing capacity, innovating technology, reducing pollution or improving the environment;
(2) New investment project is an investment project implemented for the first time or an investment project independent of an active investment project;
(3) Creative startup investment projects are investment projects that implement ideas based on exploiting intellectual property, technology, new business models and have the ability to grow rapidly.
Thus, an investment project is a collection of information, data, activities and some financial and labor factors... to implement a previously established plan. The ultimate goal of this activity is to bring initiatives and ideas into reality, true to the original purpose. At the same time, investment projects are the basis for competent state agencies to carry out management measures and grant investment licenses; it is the basis for investors to implement investment activities and evaluate the effectiveness of the project.
2. Conditions for tax refund for investment projects
Pursuant to Decree 49/2022/ND-CP, to receive tax refund, investment projects must meet the following conditions:
(1) Business establishments that have registered their business and registered to pay VAT using the deduction method (including newly established business establishments from investment projects);
(2) Have a new investment project (including investment projects divided into multiple investment phases or investment categories) in the same province, city or different province or city where the head office is located (except for investment projects that do not receive tax refunds but carry forward the deductible tax amount to the next period and investment projects to build houses for sale, investment projects that do not form fixed assets) are in the investment phase or the oil and gas field search, exploration and development project is in the investment phase;
(3) If the accumulated input VAT amount of 300 million VND or more on goods and services arising during the investment period is not yet fully deducted, VAT will be refunded.
Thus, if the above conditions are met, the investment project will receive a VAT refund.
=> See more: In what forms is financial reporting disclosed?
Photo 2. Can investment projects receive VAT refunds?_Hotline: 0972118764
II. SUMMARY OF ANSWER SECTION: CAN INVESTMENT PROJECTS GET VAT REFUND?
Dear Customers, from the above synthesis and analysis, TLK Law Firm would like to give the following answer:
Business establishments that have registered to pay value-added tax using the deduction method have a new investment project in the investment phase with value-added tax amounts on goods and services purchased for use in the investment. Investment that has not been deducted and has a remaining tax amount of three hundred million VND or more will receive a value-added tax refund.
III. HOW SHOULD YOU BEST CHOOSE AN ORGANIZATION THAT PROVIDES LEGAL SERVICES?
An organization providing quality and reputable legal services should have the following criteria:
First: Must be an official legal organization with a legal operating license;
Second: It is better if the Board of Directors must be lawyers, experienced and have high degrees;
Third: Have a team of lawyers and a systematic, professional, and thoroughly trained human resources system;
Fourth: Friendly, dedicated and make every effort for the benefit of customers. Consider customer satisfaction and work quality as your own honor;
Fifth: Professional, thoughtful, flexible and logical service provision process to optimize work performance and save customers' time;
Sixth: Reasonable and competitive service prices;
Seventh: Rich services in both fields of supply and service packages in the same field for customers to choose the appropriate service package, as well as comprehensive support for customers throughout the operation process. movement;
Eighth: Have the ability to Connect - Promote commercial relationships for customers if customers have needs,...
Finding a comprehensive, professional and reputable legal consulting organization is what every customer wants. Because no one wants to risk losing both money and time when the results are not as expected. However, finding such an organization is not easy because the number of service providers in the Vietnamese market today is very large with varying quality.
A suggestion for you: Although our TLK Law Firm does not dare to claim to be the best legal service provider on the market, we satisfy all of the above criteria and more will definitely be a good choice for you.
=> See more: Deadline for submitting financial reports?
IV. SOME QUESTIONS RELATED TO VAT REFUND FOR INVESTMENT PROJECTS
Question 1: How long is the investment project's operating term?
Reply:
According to the Investment Law 2020, the term of investment projects is prescribed as follows:
First: The operating term of an investment project in an economic zone must not exceed 70 years.
Second: The operating term of an investment project outside an economic zone must not exceed 50 years. Investment projects implemented in areas with difficult socio-economic conditions, areas with particularly difficult socio-economic conditions or investment projects with large investment capital but slow capital recovery are the operating term of the investment project can be longer but must not exceed 70 years.
Third: For investment projects that are allocated or leased land by the State but the investor is late in handing over the land, the time the State is late in handing over the land is not included in the operating term and implementation progress of the project. investment project.
Fourth: When the investment project's operating term expires, if the investor wishes to continue implementing the investment project and meets the conditions prescribed by law, the operating term will be considered for extension of investment projects but not exceeding the maximum term specified in the first and second sections, except for the following investment projects:
(1) Investment projects using outdated technology, potentially causing environmental pollution and resource-intensive;
(2) Investment projects in cases where the investor must transfer assets without compensation to the Vietnamese State or Vietnamese party.
Question 2: Is investment capital transfer subject to VAT?
Reply:
According to the VAT Law Consolidation Document No: 01/VBHN-VPQH, the capital transfer includes: transferring part or all of the invested capital, including cases of selling an enterprise to another enterprise for production, trading and transferring securities; Other forms of capital transfer as prescribed by law are not subject to value-added tax.
=> See more: Reporting periods in accounting
Above is some general advice that we would like to offer to our customers. As a service provider, we always understand and are ready to accompany and solve the needs and difficulties that customers are facing. If you still have questions or need more in-depth advice, please contact the hotline: 0972118764 to receive direct advice from a lawyer (completely free consultation).
Thank you very much!
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