Instructions for VAT refunds for kết quả bóng đá trực tiếp projects for business establishments in Vietnam

Hello, Lawnet would like to answer as follows:

1. What is kết quả bóng đá trực tiếp project?

Clause 4, Article 3 of theLaw on kết quả bóng đá trực tiếp 2020stipulates that kết quả bóng đá trực tiếp project means a collection of proposals for the expenditure of mid-term or long-term capital to carry out kết quả bóng đá trực tiếp activities in a particular administrative division over a certain period of time.

At the same time, Clauses 5, 6 and 7, Article 3 of theLaw on kết quả bóng đá trực tiếp 2020regulate the following types of kết quả bóng đá trực tiếp projects:

- Expansion project means an kết quả bóng đá trực tiếp project on development of a running project by expanding the scale, improving the capacity, applying new technologies, reducing pollution or improving the environment.

- New kết quả bóng đá trực tiếp project means a project that is executed for the first time or a project independent from any other running project.

- Start-up project means an kết quả bóng đá trực tiếp project that implements ideas on the basis of exploiting intellectual property, technologies and new business models and is able to grow quickly.

2. Conditions for business establishments with new kết quả bóng đá trực tiếp projects to receive VAT refund in Vietnam

On October 12, 2023, the General Department of Taxation issuedOfficial Dispatch 4525/TCT-CSon   response to JCCI's proposal regarding tax policies and administrative procedures, in which, the General Department of Taxation has responded about VAT refund as follows:

In Clause 3, Article 1 of the Law on VAT 2016, there is a regulation “1. ... Where a business establishment has registered to pay VAT using credit-invoice method has a new kết quả bóng đá trực tiếp project which is still in its kết quả bóng đá trực tiếp stage, VAT on goods/services purchased serving the kết quả bóng đá trực tiếp has not been deducted, and the remaining tax is at least VND 300 million, VAT shall be refunded."

At the same time, according to Clause 3, Article 1 ofDecree No. 49/2022/ND-CP, there are detailed regulations on VAT refund for kết quả bóng đá trực tiếp projects as follows:

2. Business establishments eligible for tax refund regarding kết quả bóng đá trực tiếp projects:

a) Business establishments that have registered for business and value-added tax payment according to the tax credit method (including newly established business establishments from kết quả bóng đá trực tiếp projects), have new kết quả bóng đá trực tiếp projects (including kết quả bóng đá trực tiếp projects divided into several kết quả bóng đá trực tiếp phases or kết quả bóng đá trực tiếp categories) according to regulations of the Law on kết quả bóng đá trực tiếp in areas of the same or different provinces and cities where their headquarters are located (except for cases prescribed in Point c of this Clause, kết quả bóng đá trực tiếp projects on construction of houses for sale, and kết quả bóng đá trực tiếp projects that do not create fixed assets) that are in the kết quả bóng đá trực tiếp phase or projects on prospection and projects to search, prospect, and develop oil and gas fields that are in the kết quả bóng đá trực tiếp phase, and have the input value-added tax of goods and services incurred during the cumulative kết quả bóng đá trực tiếp phase that have not been fully deducted from at least 300 million VND, shall be eligible for the value-added tax refund.

Business establishments that declare separate value-added tax for kết quả bóng đá trực tiếp projects and have to compensate for the input value-added tax of kết quả bóng đá trực tiếp projects with the value-added tax subject to payment of current business production activities (if any). After the compensation, if the cumulative input value-added tax of kết quả bóng đá trực tiếp projects has not been deducted for at least 300 million VND, such business establishments shall be eligible for the value-added tax refund.

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b) Business establishments of conditional business lines shall be eligible for the value-added tax refund for kết quả bóng đá trực tiếp projects as prescribed in Point a of this Clause if their kết quả bóng đá trực tiếp projects fall into the following cases:

b.1) kết quả bóng đá trực tiếp projects in the kết quả bóng đá trực tiếp stage and have been granted licenses to engage in conditional business lines by competent state agencies according to regulations of laws on kết quả bóng đá trực tiếp and specialized laws under one of the following forms: Licenses, certificates, or documents on verification and approval.

b.2) kết quả bóng đá trực tiếp projects in the kết quả bóng đá trực tiếp stage that are yet to be required to apply for licenses to engage in conditional business lines issued by competent state agencies according to regulations of laws on kết quả bóng đá trực tiếp and specialized laws under one of the following forms: Licenses, certificates, or documents on verification and approval.

b.3) kết quả bóng đá trực tiếp projects that are not subject to licenses to engage in conditional business lines according to laws on kết quả bóng đá trực tiếp and specialized laws under one of the following forms: Licenses, certificates, or documents on verification and approval.

Thus, business establishments (including newly established business establishments from kết quả bóng đá trực tiếp projects) are entitled to VAT refund when:

First, production and business establishments register to pay VAT according to the tax credit method.

Second, the production and business establishment have a new kết quả bóng đá trực tiếp project and are in the kết quả bóng đá trực tiếp stage.

A new kết quả bóng đá trực tiếp project can be divided into many kết quả bóng đá trực tiếp phases or kết quả bóng đá trực tiếp items according to the provisions of the kết quả bóng đá trực tiếp Law in the same province or city or in a different province or city where the head office is located. kết quả bóng đá trực tiếp segment.

Third, the kết quả bóng đá trực tiếp project must have a cumulative input value-added tax amount of 300 million VND or more on goods and services arising during the kết quả bóng đá trực tiếp period that has not been fully deducted to be refunded the value-added tax.

3. Documents for refund of VAT on an kết quả bóng đá trực tiếp project in Vietnam

- According to Point a, Clause 2, Article 28 ofCircular No. 80/2021/TT-BTCdated September 29, 2021 (amended in Article 2 ofCircular No. 13/2023/TT-BTCdated February 28, 2023), documents for refund of VAT on an kết quả bóng đá trực tiếp project include:

- Copy of the Certificate of kết quả bóng đá trực tiếp Registration or kết quả bóng đá trực tiếp Certificate or kết quả bóng đá trực tiếp License in case the Certificate of kết quả bóng đá trực tiếp Registration is mandatory;

- If the project has a construction work: Copy of the Land Use Right (LUR) Certificate, land allocation decision or land lease contract of a competent authority; the construction license;

- Copy of the charter capital contribution certificate;

- Regarding kết quả bóng đá trực tiếp projects of business establishments having conditional business lines in the kết quả bóng đá trực tiếp stage that have been granted licenses for conditional business lines by competent state agencies according to regulations of laws on kết quả bóng đá trực tiếp and specialized laws under regulations in Clause 3 Article 1 ofDecree No. 49/2022/ND-CP: Copy of one of the licenses, certificates, or written confirmation or approval for these conditional business lines.

- A list of invoices and documentary evidence for purchases according to Form No. 01-1/HT in Appendix I hereof, unless the taxpayer has sent electronic invoices to the tax authority;

- The decision on establishment of the Project Management Board, the project owner's decision on assignment of project management tasks, regulations on organizational structure and operation of the branch or Project Management Board (if tax refund is applied by the branch or Project Management Board).

Thus, documents for VAT refund shall comply with the provisions in Point a, Clause 2, Article 28 ofCircular No. 80/2021/TT-BTCdated September 29, 2021 (amended in Article 2 ofCircular No. 13/2023/TT-BTCdated February 28, 2023)

Key word: VAT | refund | VAT refund | kết quả bóng đá trực tiếp project | in Vietnam |

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