Exported goods as unprocessed natural resources and minerals not subject to VAT
New regulations on VAT |
Specifically, Decree No. 146/2017/ND-CP amending regulations on entities which are not subject to value added tax for the case where exported goods are natural resources and minerals which have not been processed into other products
Besides, entities not subject to VAT are also exported products which are directly processed from main materials as natural resources. Of which, the total value plus energy costs account for more than 51 % of production costs, except the following cases:
Exported products that are processed from natural resources and minerals which are directly exploited and processed by business establishments, or processed by other establishments to be new products, and that are then processed into exported products (circle process or establishment of workshops and processing plants in each stage). These exported products shall be subject to the VAT rate of 0% if they meet the conditions prescribed in point C, Clause 2, Article 12 of the VAT Law.
Exported products processed from main raw materials which are not natural resources or minerals (natural resources which have been processed into different products), which are purchased or processed by business establishments. The export products shall be subject to the VAT rate of 0% if they meet the conditions specified at Point C, Clause 2, Article 12 of the VAT Law.
Amending regulation on VAT refund
Besides, Decree No. 146/2017/ND-CP also amends and supplements regulations on VAT refund.
Specifically, if in a month (for case of monthly declaration), in a quarter (for case of quarterly declaration), a business establishment has exported goods or services including the following cases: imported goods which are then exported to non-tariff areas; and imported goods which are then exported to overseas with the input VAT of VND 300 million or more which have been not deducted, it shall be entitled to a monthly or quarterly VAT refund. If the input VAT in a month or a quarter is less than VND 300 million, the VAT shall be deducted in the next month or quarter. If a business establishment has both goods and services for export and goods and services for domestic consumption, after balancing with the tax payables, the input VAT which has been not deducted is VND 300 million or more, the business establishment shall be entitled to tax refund.
Business establishments shall separately account the input VAT amount used for the production and business of exported goods and services. In cases where the input VAT amount is not accounted separately, it will be determined in accordance with the ratio of turnover from exported goods and services out of total turnover from goods and services of the VAT declaration periods which are determined from the tax declaration period followed by the previous tax refund period to the current tax refund period.
Business establishments are not entitled to VAT refund for cases where imported goods are then exported but not exported at Customs areas in accordance with the provisions of the Customs law; and exported goods are not exported at Customs areas in accordance with the provisions of the Customs law.
Why are enterprises not interested in selling VAT refundable goods? VCN - After nearly 6 years of implementing the VAT refund policy for goods bought by foreigners, ... |
The tax authority shall carry out the tax refund first and inspect later for taxpayers who produce exported goods and are not handled for acts of smuggling or illegal cross-border transport of goods, or not engaged in tax evasion or fraud and trade frauds for two consecutive years; and taxpayers who are not subject to high risks under the provisions of the Law on Tax Administration and the guiding documents thereof.
Related News
Five amended laws to untie investment knots
10:50 | 07/10/2024 Import-Export
VAT reduction is necessary but not tool used every recession: Canadian expert
09:39 | 27/09/2024 Finance
Amend the law to protect the rights of accountants
09:11 | 30/09/2024 Regulations
Amending the Law to create the best conditions for state-owned enterprises
11:05 | 14/09/2024 Regulations
Latest News
Must strictly manage duty-free goods
10:16 | 08/10/2024 Regulations
Simplification is not enough, enterprises need stronger administrative reform
10:23 | 29/09/2024 Regulations
Propose a 15-30% reduction in land rents in 2024 for people affected by typhoon Yagi
10:39 | 28/09/2024 Regulations
Amending 3 important policies in the Law on State Budget
09:05 | 26/09/2024 Regulations
More News
MoF proposes to abolish Article 35 on “on-the-spot import and export” in Decree No.08/2015/ND-CP
08:59 | 25/09/2024 Regulations
Revised Law on Special Consumption Tax to reduce consumption rate of products harmful to health
09:08 | 22/09/2024 Regulations
Chile officially issues electronic C/O form VC from November 1, 2024
20:39 | 17/09/2024 Regulations
Adding tax exemption conditions in the draft revised Law on Corporate Income Tax
09:26 | 16/09/2024 Regulations
Increasing penalties to reduce violations in independent auditing
12:32 | 15/09/2024 Regulations
Tax increase for alcohol, beer, tobacco should go with combat against smuggling and tax evasion
09:35 | 11/09/2024 Regulations
Information on the proposal to remove the VAT exemption for low-value goods
14:01 | 10/09/2024 Regulations
Alcohol and beer are subject to special consumption tax
19:06 | 02/09/2024 Regulations
It is necessary to clarify principles for applying the list of food safety inspection items
09:10 | 29/08/2024 Regulations
Your care
Must strictly manage duty-free goods
10:16 | 08/10/2024 Regulations
Amend the law to protect the rights of accountants
09:11 | 30/09/2024 Regulations
Simplification is not enough, enterprises need stronger administrative reform
10:23 | 29/09/2024 Regulations
Propose a 15-30% reduction in land rents in 2024 for people affected by typhoon Yagi
10:39 | 28/09/2024 Regulations
Amending 3 important policies in the Law on State Budget
09:05 | 26/09/2024 Regulations