This circular guides the Value-Added Tax (VAT) policy applicable to goods and services provided and installed for non-repayable aid projects of foreign organizations and individuals in Vietnam. The document specifies the procedures for refunding and exempting VAT in the aforementioned cases.
适用范围
Domestic enterprises, production and business establishments providing goods and services for non-repayable aid projects of foreign organizations and individuals; Associations using aid funds to purchase goods in Vietnam.
要点
- Associations using non-repayable foreign aid funds to purchase goods domestically are entitled to a refund of VAT already paid (Article 1).
- Foreign aid organizations directly signing contracts with domestic business establishments to implement non-repayable aid projects are exempt from VAT (Article 2).
- Domestic production and business establishments providing goods and services to foreign aid organizations at prices excluding VAT may deduct input VAT on the supplied goods and services (Article 2).
- Domestic production and business establishments declare and pay VAT under the deduction method when supplying goods and services to foreign aid organizations.
- Refund of VAT and exemption from VAT must comply with the provisions set forth in Circular No. 120/2003/TT-BTC and Circular No. 32/2005/TT-BTC.
🌐 本文件的社会影响
- To facilitate domestic enterprises in obtaining a refund of VAT when supplying goods and services for non-repayable aid projects of foreign organizations and individuals.
- To create favorable conditions for the implementation of non-repayable aid projects from abroad in Vietnam.
- To alleviate financial burdens on Associations when using aid funds to purchase domestic goods.
❓ 常见问题
Are foreign organizations exempt from VAT when implementing non-repayable aid projects in Vietnam?
Yes, according to this circular, foreign aid organizations directly signing contracts with domestic business establishments to implement non-repayable aid projects are exempt from VAT.
Can domestic production and business establishments deduct VAT when supplying goods and services to foreign aid organizations?
Yes, domestic production and business establishments declaring and paying VAT under the deduction method and providing goods and services subject to VAT at prices excluding VAT to foreign aid organizations may deduct input VAT on the supplied goods and services.
Can Associations obtain a refund of VAT when using aid funds to purchase domestic goods?
Yes, Associations using non-repayable foreign aid funds to purchase goods in Vietnam are entitled to a refund of VAT already paid as indicated on invoices.
To which projects does this circular apply?
It applies to non-repayable aid projects funded and implemented by foreign organizations and individuals in Vietnam.
What regulations must be followed for the refund of VAT?
Refund of VAT must comply with the provisions set forth in Circular No. 120/2003/TT-BTC and Circular No. 32/2005/TT-BTC.
全文
LETTER
FROM THE MINISTRY OF FINANCE DECREE NO. 10513/BTC-TCT DATE AUGUST 22, 2005
REGARDING VALUE ADDED TAX POLICY
Dear: - Ministries and equivalent agencies
- People's Committees of provinces and centrally-run cities
- Tax Departments of provinces and centrally-run cities
Recently, the Ministry of Finance received letters from some enterprises and Tax Departments reflecting on value added tax (VAT) policies for goods and services provided and installed in projects funded by foreign organizations无偿援助越南的项目。关于此事， The Ministry of Finance has the following opinions: Based on Circulars No. 120/2003/TT-BTC dated ; and No. 32/2005/TT-BTC dated issued by the Ministry of Finance regarding VAT,
as follows: - In cases where associations (collectively referred to as "associations") use foreign无偿援助 funds to purchase goods in Vietnam, the association is entitled to claim a refund of VAT paid as recorded on the VAT invoice when purchasing goods.- Where foreign funding organizations directly enter into contracts with domestic businesses to implement无偿援助 projects,
such projects are exempt from VAT. At the same time, domestic enterprises that provide goods or services without VAT prices to foreign funding organizations and declare and pay VAT according to the deduction method can deduct and claim a refund of input VAT on goods and services provided for the project.The Ministry of Finance
hereby informs relevant units to be aware and implement uniformly. 知各单位知悉并统一执行。They are exempt from VAT. At the same time, domestic production and business establishments that declare and pay VAT using the deduction method, supplying goods or services subject to VAT to foreign aid organizations at prices excluding VAT, shall be entitled to deduct and refund input VAT for the goods or services provided to such projects.
Ministry of Finance roughly notify units to be aware and implement uniformly.
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