Công văn 2503/TC/TCT

To: Provincial/municipal Tax Departments

The Ministry of Finance has received official letters from several provincial/municipal Tax Departments and enterprises, requesting for the credit of input value added tax and the refund of value added tax for export contracts which state the deadline for foreign parties to make deferred payment pending the submission of all via-bank payment vouchers. Regarding this issue, the Ministry of Finance gives the following opinions:

1. According to Point 2, Section II, Part D of the Finance Ministry’s Circular No. 120/2003/TT-BTC of December 12, 2003, providing for the conditions and procedures for the credit and refund of input VAT for export goods or services, a list of via-bank payment vouchers for export goods or services is required.

However, if business establishments exporting goods and/or services under contracts which state the deadline for foreign parties to make deferred payment must wait for all via-bank payment vouchers to make a list thereof for tax credit and refund, they may face difficulties with their capital, especially in case of large export turnovers and large creditable and refundable tax amounts.

In order to remove difficulties for business establishments, for export contracts which state the deadline for foreign parties to make deferred payment, business establishments may make a written commitment to produce a list of via-bank payment vouchers for goods or services, instead of such list in VAT refund dossiers.

2. By the committed deadline, if business establishments fail to produce the list of via-bank payment vouchers for export goods or services, tax offices shall recover the credited or refunded VAT amounts and impose sanctions on acts of appropriating state’s refunded tax amounts according to current regulations.

The Ministry of Finance hereby notifies the aforesaid guidance to provincial/municipal Tax Departments for guiding business establishments in the implementation.