This circular of the Ministry of Finance reiterates the regulations on the documentation for value-added tax (VAT) refunds for Official Development Assistance (ODA) project sponsors, requiring project sponsors to provide a detailed explanation of their funding sources and take responsibility for confirming that they have not received funds from the state budget.
Scope of application
ODA project sponsors; Provincial Tax Departments
Key points
- Project sponsors must provide a detailed breakdown of the funding structure to implement the project (Point 2.3, Section 2)
- Project sponsors must clearly confirm that their projects do not receive funding from the State Budget, except for non-repayable aid projects managed by international organizations (Point 2.3, Section 2)
- Project sponsors are responsible for the confirmation stated above and the amount of VAT refund requested (Point 2.3, Section 2)
- If the documentation has not been confirmed by the State Treasury regarding non-provision of counterpart funding, project sponsors must supplement their documentation according to new guidelines and submit it to tax authorities for consideration.
- Relevant units shall implement this guidance issued by the Ministry of Finance
🌐 Social impact of this document
- Facilitate ODA project sponsors in obtaining VAT refunds more easily
- Strengthen financial management of projects using ODA funds, preventing budget losses
- Affected parties are project sponsors and tax authorities
❓ Frequently asked questions
What must a project sponsor explain when submitting documentation for VAT refund?
Project sponsors must provide a detailed breakdown of the funding structure to implement the project and clearly confirm that their projects do not receive funding from the State Budget.
If the documentation does not have confirmation from the Treasury regarding non-provision of counterpart funding, what should project sponsors do?
Project sponsors must supplement their documentation according to new guidelines and submit it to tax authorities for consideration.
Who is responsible for the confirmation stated above and the amount of VAT refund requested?
Project sponsors are responsible for the confirmation mentioned above.
Full text
LETTER
FROM THE MINISTRY OF FINANCE DECREE NO. 5969 TC/TCT DATE MAY 18, 2005
REGARDING INCOME TAX REFUND FILING PROCEDURES FOR ODA PROJECTS
Respected: - Ministries, agencies at the ministerial level, and government agencies
- People's Committees of provinces and centrally-administered cities ngườidân các tỉnh, thành phố trực thuộc Trung ương
- Provincial Tax Departments and centrally-administered city tax departments
On July 13, 2004, the Ministry of Finance issued Letter No. 7711/TC/TCT on strengthening tax management and financial management for ODA-funded projects, including guidance that project sponsors must submit a tax refund application along with a confirmation from the State Treasury regarding non-provision of budget funds to pay VAT. nước về To facilitate project sponsors in processing VAT refund procedures, the Ministry of Finance amends the guidance at Point 2.3, Section 2 of Letter No. 7711 TC/TCT as follows: sau:
When submitting a tax refund application to the tax authority, project sponsors must provide a detailed explanation regarding the funding structure for implementing the project, clearly identifying that the project does not receive state budget funds (except for ODA-funded projects with non-reimbursable aid managed and used by international organizations to implement such projects). Project sponsors are responsible for confirming the above information and the amount of VAT requested for refund.
For tax refund applications that have not been processed due to lack of confirmation from the State Treasury regarding non-provision of budget funds, project sponsors must supplement documentation on funding in accordance with the guidance provided above and submit it to the tax authority for consideration and resolution.
The Ministry of Finance hereby informs relevant units to be aware and implement accordingly.báo để các đơn vị biết và thực hiện.
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