Official Dispatch No. 5071/TCT-KK dated November 7, 2024, from the General Department of Taxation, guidance on the refundable VAT for investment projects
The company is registered to pay VAT under the credit method, with its headquarters located in Hai Phong City, and is undertaking an investment project to construct a factory in Thai Binh Province. In practice, the company has failed to meet the construction progress specified in the initial Investment Registration Certificate issued by the People’s Committee of Thai Binh Province on June 3, 2021, and subsequently amended on May 22, 2023.
Pursuant to Clause 2, Article 41 of the 2020 Law on Investment: Investors are required to adjust their Investment Registration Certificate if modifications to the investment project alter its contents. Should the company fail to adjust the project’s implementation timeline as prescribed in the Investment Registration Certificate, the response provided by the Thai Binh Provincial Tax Department in Official Dispatch No. 620/CTTBI-KK dated January 31, 2024, is deemed appropriate.
Accordingly, for the input VAT of the investment project directly managed by the company, which is non-refundable but meets the conditions for deduction, the company is allowed to carry forward the unreimbursed input VAT from goods and services incurred during the investment phase to deduct and offset against the VAT payable from production and business activities directly managed by the company, currently declared at the Hai Phong City Tax Department (if applicable).
Please refer to the attached file for detailed information.
