Official Letter 2668 / TCT-CS in 2020 on value added tax policy for enterprises when transformed into export processing enterprises issued by the General Department of Taxation

The General Department of Taxation received the official letter from the Tax Department of Ha Nam province (Official Letter No. 800 / CT-KK dated 02 March 03), the Tax Department of Phu Yen province. Document No. 2020 / CT-TTHT), Department of Taxation of Quang Nam province (Official Letter No. 3444 / CT-TTHT), Department of Taxation of Dong Nai province (Official Letter No. 5133 / CT-TTHT) ask about VAT policy for enterprises when transformed into an export processing enterprise. In this regard, the General Department of Taxation has the following opinions:

1. Regarding the input VAT amount not yet fully credited by the enterprise when it is transformed into an export processing enterprise (EPE).

In Clause 7, Article 1 of the Law on VAT No. 31/2013 / QH13 amending and supplementing Clause 3, Article 13 of the Law on VAT No. 13/2008 / QH12 specifies the cases of VAT refund as follows:

“Article 13. Tax refund cases

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3. Business establishments that pay value-added tax according to the tax credit method are entitled to value-added tax refund upon ownership transformation, enterprise transformation, merger, consolidation, division, separation, dissolution or destruction. production or shutdown has an overpaid value-added tax amount or the input value-added tax amount has not yet been fully credited. ”

The Department of Taxation is requested to base on the above regulations and the actual situation to handle according to regulations.

2. Regarding the VAT amount already paid at the importation stage.

a) In Clause 13 Article 1 of the Law on Tax administration No. 21/2012 amending and supplementing Article 47 of the Law on Tax Administration No. 78/2006, the overpaid tax amount is as follows:

“Article 47. Handling tax amounts, late payment interest, and fines overpaid

1. Taxpayers have paid tax amounts, late payment interest, and fines larger than the payable tax amounts, late payment interest and fines for each tax within ten years from the date of remittance into the bank. In the State book, the overpaid tax, late payment interest, fines may be offset against the outstanding tax, late payment interest, and fines, including the clearing among taxes; or subtract from the tax, late payment interest, and fines payable on the next tax payment time; or refund the overpaid tax, late payment interest, or fines when the taxpayer no longer owes tax, late payment interest, or fines. "

b) In Clause 64 Article 1 of the Circular No. 39/2018 / TT-BTC dated April 20, 04 of the Ministry of Finance amending and supplementing Article 2018 of Circular No. 131/38 / TT-BTC dated March 2015, 25 The Ministry of Finance's regulations are as follows:

"sixty four. Article 64 is amended and supplemented as follows:

“Article 131. Procedures for handling tax, late payment interest, and fines overpaid

1. Tax, late payment interest, and fines for exported and imported goods are determined to be overpaid according to Article 47 of the Law on Tax Administration dated November 29, 11, which is amended and supplemented in Clause 2006 Article 13 of the Law amending and supplementing a number of articles of the Law on Tax Administration dated November 1, 20; Point a, Clause 11, Article 2012 of Decree No. 1/29 / ND-CP. ”

In case the enterprise is engaged in production and business activities that pay VAT according to the deduction method and is not entitled to the policy that the export processing enterprise changes to an export processing enterprise, from the time the enterprise is mainly entitled to the list of export processing enterprises in accordance with the law (the export processing enterprise is specified in the investment registration certificate or in a written document of the competent investment registration agency in the case where the procedures are not required. issuance of the Investment Registration Certificate), if the enterprise has already paid VAT at the importation stage, it is requested that the export processing enterprise comply with the above-cited provisions and relevant laws.

The General Department of Taxation has suggestions so that the Tax Department of Phu Yen province, the Tax Department of Quang Nam province, the Tax Department of Dong Nai province and the Tax Department of Ha Nam province are known./.