VAT refund of the new investment project
In August, the company was licensed by the State Authorities to implement the investment project on exploitation of stone to produce cement. In the third quarter of tax year 2016, the deductible VAT amount of this investment project is VND 500 million. So, can my company get VAT refund for this new investment project?
Regarding this issue , General Department of Taxation would like to answer as follows:
Clause 3 of Article 1 of Circular No. 130 of 2016 of the Ministry of Finance stipulates that business establishments shall not be entitled to reimbursement of value added tax but shall be entitled to transfer the non-deductible VAT amount of the investment project in Law on investment to the next period in the case of investment projects to exploit natural resources and minerals licensed from 1/7/ 2016 or investment projects to produce goods with the total value of natural resources , Minerals plus energy costs account for 51% or more of the cost of the product under the investment plan.
Thus, if your company's stone exploitation project was licensed in August 2016, if there is a non-deductible VAT amount of this investment project, it will be transferred to the next period and not belong to the case of refundable VAT.
- By : Website of the General Department of Taxation / Translator: HaiYen-Bizic
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