This circular guides the non-collection and refund of Value-Added Tax for imported cattle breeding stock from January 1, 2002 for dairy cow development projects approved by competent state authorities.
Scope of application
["importer","project owner"]
Key points
- "Importer" shall not pay Value-Added Tax at the import stage for cattle breeding stock to implement an approved project (Article 1)
- "Importer" when issuing invoices to the project owner, shall record only the price excluding Value-Added Tax, and omit and strike out the tax rate and amount of Value-Added Tax (Article 2)
- "Importer" is entitled to a refund of paid Value-Added Tax at the import stage if conditions are met (Article 3)
- The project owner shall settle expenses for cattle breeding stock according to the price excluding Value-Added Tax (Article 3)
- Customs and tax authorities shall implement procedures and document checks to refund Value-Added Tax for the aforementioned projects (Article 3)
🌐 Social impact of this document
- "Importer" and "project owner" benefit from non-payment of Value-Added Tax and refunds, reducing investment costs.
- The state budget may be affected by a loss of Value-Added Tax revenue due to importing cattle breeding stock.
❓ Frequently asked questions
Does the importer of cattle breeding stock for an approved dairy cow development project have to pay Value-Added Tax?
"Importer" does not need to pay Value-Added Tax at the import stage for cattle breeding stock (Article 1)
What procedures and documents must the importer present to receive a refund of paid Value-Added Tax?
"request for tax refund letter","import contract","project approval decision","customs declaration form","tax payment receipt","invoice for cattle breeding stock" (Article 3)
How does the project owner settle expenses for cattle breeding stock?
The project owner settles expenses for cattle breeding stock according to the price excluding Value-Added Tax (Article 3)
How do Customs and tax authorities implement Value-Added Tax refunds?
Customs and tax authorities shall carry out procedures and document checks to refund Value-Added Tax for the aforementioned projects (Article 3)
From what source is the Value-Added Tax refund taken?
The tax refund is taken from the Value-Added Tax refund fund (Article 3)
Full text
LETTER
OF THE MINISTRY OF FINANCE NUMBER 10285TC/TCT DATED SEPTEMBER 20, 2002
REGARDING VALUE-ADDED TAX ON IMPORTED BEEF CATTLE
Dear: - Ministries, ministerial-level agencies, and government agencies
- People's Committees of provinces and centrally-run cities
Pursuant to the directive of the Prime Minister in Letter No. 741/CP-KTTH dated July 1, 2002 regarding value-added tax on imported beef cattle, the Ministry of Finance guides as follows:
1\. As of January 1, 2002, no value-added tax shall be levied at the import stage for imported beef cattle by importing entities (including entrusted imports) to implement dairy cow development projects approved by competent state authorities.
To have grounds not to levy value-added tax on imported beef cattle, the importing entity must present to customs authorities the following procedures and documents:
- Import contract signed with foreign countries;
- Sales contract (or entrusted import) between the importing entity and the entity implementing the dairy cow development project approved by competent state authorities;
- Decision of the competent state authority approving the dairy cow development project for the implementing entity (a copy bearing the signature and stamp confirmation of the project leader).
2\. Importing entities that do not have to pay value-added tax at the import stage as stated in point 1 above shall not calculate or declare payment of value-added tax on imported beef cattle for such projects. When issuing an invoice to the implementing entity, the importing entity only records the selling price without value-added tax, and does not record the tax rate or amount of value-added tax, which should be crossed out.
3\. Refund of value-added tax for entities that have paid value-added tax at the import stage:
Entities importing beef cattle from January 1, 2002 to implement dairy cow development projects approved by competent state authorities shall be refunded the amount of value-added tax already paid at the import stage. The importing entity and the implementing project leader adjust the payment price according to the price without value-added tax. Project leaders settle expenses for imported beef cattle based on the price without value-added tax.
To have grounds to refund the value-added tax already paid at the import stage, the importing entity must present the following complete procedures and documents:
- Letter requesting a refund of value-added tax;
- Import contract signed with foreign countries (a copy bearing the signature and stamp confirmation of the importing entity);
- Sales contract (or entrusted import) between the importing entity and the entity implementing the dairy cow development project approved by competent state authorities;
- Decision of the competent state authority approving the dairy cow development project for the implementing entity (a copy bearing the signature and stamp confirmation of the project leader);
- Customs declaration form for imported goods with confirmation from customs authorities;
- Payment receipt for value-added tax at the import stage (a copy bearing the signature and stamp confirmation of the payer);
- Invoice for selling beef cattle without value-added tax.
The Ministry of Finance authorizes the Director of Provincial Tax Bureaus to implement refunds of value-added tax according to the guidance in point 2 of this letter. Refunds shall be made after reviewing procedures and documents at the importing entity. Refund funds will come from the VAT refund fund.
During implementation, if there are any difficulties, please send written documentation to the Ministry of Finance (General Department of Taxation) for study and resolution.
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