This is the content prescribed at the Circular No. 134/2014/TT-BTC dated September 12, 2014 of the Ministry of Finance guiding the procedure for extension of VAT payment and refund for import machines and equipments for investment project’s fix assets.
Accordingly, enterprises that are newly established from investment projects and have yet to be brought into operation or those that have been already brought into operation, who are taking part in investment projects (such as the installation of new production line, operational expansion, technological innovation, environmental improvement and production capacity enhancement) by means of directly importing or giving the authorization to import machinery and equipment used as fixed assets in such investment projects but are also faced with financial difficulties such as failure to distribute a sufficient amount of money for the VAT payment at the importation stage; reliance on loans from commercial banks on the importation of machinery and equipment for production and trading purposes; in case of great losses incurred by the delayed customs clearance of commodities leading to the suspended and extended investment, they are entitled to choose between VAT payment extension at the importation stage at the importation stage, which is applied to machinery and equipment that need to be imported to create fixed assets for investment projects within a period of 60 days from the expiration date of VAT payment as prescribed by laws. The tax payment extension shall take effect from the first shipment of freight which is worth less than VND 100 billion. The freight shall be granted customs clearance right after the customs authority completes their physical inspection.
To get the extension of VAT payment, enterprises, who apply for their VAT payment registration under the credit-invoice method, has been already granted the certificate of business registration or investment certificate, investment license; hold legitimate stamps, maintain bookkeeping and accounting systems in compliance with the accounting law; open deposit accounts at banks classified by their tax identifications; total value of imported machinery and equipment used as fixed assets is worth equal to or greater than VND 100 billion; and any investment project is developed to produce, trade or supply taxable commodities and services.
This Circular takes effect on October 27, 2014.
