Which export processing zone enterprises do not get VAT refund?

Under the provisions of Circular No. 219/2013/TT-BTC, goods and services traded between foreign countries and the non-tariff zones or between different non-tariff zones are not liable for VAT.

Besides, EPZ enterprises which are grantedBusiness Licenses for activities of purchase and sale of goods and activities directly related to the purchase and sale of goods in Vietnammust create accounting books to separately account the revenues and costs related to the activities of purchase and sale of goods in Vietnam, and arrangegoods storage areas separated fromthe cargo storage areas serving the production of the EPZ enterprises, or establish branches based outside the EPZ enterprises and free-trade zones to perform this operation.

On the other hand, Decree 100/ND-CP dated July 1st, 2016, guiding to allocate input VAT value, if the EPZ enterprises do not separatelyaccountthe input VAT value used for production of exported goods and services, the input VAT value will be determined by the ratio between the turnover of exported goods and services and the total turnover of goods and services in the VAT declaration periods from the VAT declaration period after the previous tax refund period to the current request of tax refund period.

According to the General Department of Taxation, EPZ enterprises executing production activities to export are not liable for VAT and do not get VAT refund.

If an EPZ enterprise purchases goods and services from another EPZ enterprise to serve production activities to export, it will be not be liable for VAT.

If an EPZ enterprise is granted a Business Licenses for activities of purchase and sale of goods and activities directly related to the purchase and sale of goods in Vietnam, it must register with the local tax office to declare and pay VAT and use invoices like local firms. According to the provisions of Law No. 106/2016/QH13, if that EPZ enterprise has imported goods for export (sold to foreign organizations or other EPZ enterprises), it will not get the VAT refund, the value of VAT the EPZ enterprise has paid when imported the goods will be deducted.