No tax exemption or tax refund if enterprises do not manufacture

	Enterprises must meet the requirements for Value Added Tax refund on exported goods
	Encourage enterprises to embrace electronic tax refund and invoice
	Tax refund for re-exported goods

Operational activities at the Thanh Thuy Customs Branch (the Ha Giang Customs Department). Photo: T. Trang.

That is the guidance of the General Department of Vietnam Customs for problems of Minh Sang Company Limited when importing raw materials for export production.

According to the provisions of Clause 2, Article 12 and Clause 3 of Article 36 of Decree 134/2016 / ND-CP, goods are subject to tax-exemption if organizations and individuals which produce goods for export must have factories and facilities in the territory of Vietnam; have ownership or rights for using machinery and equipment in line with raw materials, supplies and components imported for export production under Customs legislation.

In the case where enterprises do not manufacture or produce but hire other organizations to produce, they will not be allowed to enjoy tax exemption and tax refund when importing materials for production.

The payment of VAT on imported materials which are not qualified to determine the tax-exemption will comply with the provisions of Article 12 and Article 36 of Decree 134/2016/ND-CP.

Tax refunds to be accelerated The tax watchdog is striving to increase the percentage of tax reimbursements processed through the "refund first, ...

Currently, the General Department of Vietnam Customs is consulting the relevant units as well as noting problems of enterprises to response as soon as possible.