CIRCULAR guide value added tax applicable to projects using funds official development assistance (ODA) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ the base of value-added tax law No. 02/1997/QH9 on 10/5/1997 and the Government Decree detailing implementation of value added tax law;
Pursuant resolution No. 90/1999/NQ-UBTVQH10 on 3 September 1999 by the Standing Committee of the National Assembly on the amendment, some additional categories of goods and services subject to value added tax not subject and value added tax rates for some goods and services.
Pursuant to decision No. 217/1999/QD-TTg dated December 7, 1999 by the Prime Minister on the value-added tax applicable to projects using funds official development assistance (ODA);
The Ministry of Finance shall guide the implementation of the value added tax (RATES) for the program, project (hereinafter referred to as project) use of ODA as follows: i. for the PROJECTS USING ODA NOT REFUNDABLE: 1. for imported goods: the goods, imported to make the projects using ODA not refunded in an not subject to value added tax. When importing goods, materials for the project, the project Owner or the contractor filed for customs verification non-refundable aid of competent bodies together with the imported records to not value added tax.
2. for goods, services purchased in the country: a. the goods and services provided by the contractor for projects using ODA not refunded in an not be VAT (the main contractor is understood as the Organization, individuals sign contracts directly with the project to implement the construction , advice or provide the goods, materials, mainly for projects). The main contractors are refunded VAT was charged when buying goods and services in the country.
After receiving the invoice for payment of subcontractors or suppliers in the country, the main contractor submit the records to the tax authorities for reimbursement. In addition to the records are filed first is a copy of investment decisions the competent authorities, a copy of the contract signed with the contractor of the project (The copies are stamped confirmation of project Owners) and a copy of the contract of subcontract part of the work to subcontractors or contract to purchase goods materials, signed with domestic suppliers have stamped confirmation of main contractor, each main contractor reimbursement proposal filed with the tax authorities:-dispatch proposed value added tax refund under model number 09/RATES attached to circular No. 89/1998/TT-BTC on 27/6/1998 of the Ministry of finance.
-Lists the invoice value of goods and services purchased in order to implement the project according to the model number 03/ADDED VALUE attached to circular No. 89/1998/TT-BTC on 27/6/1998 of the Ministry of finance.
b. goods or services by the project Owners themselves bought from suppliers in the country have to pay VAT, is refundable. After receiving the payment invoice of the supplier in the country, the owner of the project profile submitted to the tax authorities for reimbursement. Complete tax records as a guide in paragraph a above except a copy of the contract of subcontract part of the work to subcontractors.
II. for PROJECTS USING ODA LOANS in the STATE BUDGET that is NON-REFUNDABLE INVESTMENTS: projects using ODA loans in the State budget that is non-refundable investments specified in article 2 of decision No. 217/1999/QD-TTg on December 7, 1999 by the Prime the project, including the use of loans and projects using ODA mixture (the project has used a portion of ODA is not refundable but the ODA does not refund that are not funded by private agreements) are the State budget (central budget or local budget) the entire investment or part of capital.
The project comes on the back of VAT paid when importing and buying goods or services in the country to implement the project.
1. for imported goods: the VAT already paid when importing goods, and materials under the provisions of the law on VAT was refundable. Complete tax records include: + VAT complete suggested under model number 09/RATES attached to circular No. 89/1998/TT-BTC on 27/6/1998 of the Ministry of finance.
+ Investment decision or project approval of the competent authority (a copy of the Master project-first submission).
+ Export goods declaration, import (a copy of the Master project).
+ Receipts filed with VAT for imported goods by customs or the submission of Paper money by wire transfer confirmation of Treasury (original).
+ Contract-mandated import for cases mandated for other businesses to import (copy certified by the main contractor or the project Owner).
+ The contract signed between the project Owner and the prime contractor in case the main contractor procedures for import of goods (stamped copies certified by the owner of the project).
Where the project directly imported the goods, materials, subject of VAT, project Owners can suggest recorded ceasing to pay the VAT number together with the import tax (if any). The procedure and the order record currency recorded genus is done as for the case of record ceasing the import tax.
2. for goods, services purchased in the country:

VAT number project has charged when buying goods, services are refunded. Shortly after receiving the goods supplier's payment dơn, the owner of the project profile submitted to the tax authorities for reimbursement. Complete tax records as prescribed in clause b point 2 Items I mentioned above.
Where the subcontract project for the main contractor and in the bid does not include VAT when a payment to the owner of the project, the main contractors do not charge VAT and the main contractor was paid the VAT refund when purchasing goods and services. Complete tax records in addition to the instructions in paragraph a of section I point 2 above, the prime contractor must submit the first dispatch of additional project tax refund proposal directly to the main contractor in the bid does not include VAT.
III. for OTHER PROJECTS: projects using ODA loans from the State budget, including the projects using ODA capital mix, not being the State budget investment or support a capital part, payable VAT VAT law and the text of the current guidelines.
Home care project which had to pay VAT from domestic sources of capital, not using ODA to pay tax. Of RATES paid in the course of implementing the project are deductible or refundable according to the instructions in the circular No. 89/1998/TT-BTC on 27/6/1998 and circular No 93/1999/TT-BTC on 28/7/1999 of the Ministry of finance.
IV. TAX REGISTRATION PROCEDURES: 1. for the main contractor:-the main contractor in the country to use the tax code has been issued to trading and VAT refund procedures.
-Foreign contractors are trading in Vietnam has granted tax code are continuing to use the tax code as tax refund procedures.
-The first foreign contractor to business in Vietnam or are doing business in Vietnam but has not been granted the tax code (the contractor is to declare, pay tax through the Organization, Vietnam by personal tax deduction measures) must file sent local tax authorities where the executive offices (for the contractor had executive offices) or local tax where construction under model number 04/REGISTER-TCT attached to circular No. 83/1998/TT-BTC on 12/6/1998 of the Ministry of finance. Tax authorities granted the tax code for the foreign contractors under the regulation.
2. for the Home project:-registered project Owners tax code, use the code that when the tax refund procedures.
-For the new project owners need registration code for tax refund, file tax registration with tax authorities where the Executive Office within 10 days after receiving the decision of the competent authority in accordance with the guidance in circular No. 83/1998/TT-BTC on 12/6/1998 of the Ministry of finance.
-Where the project has registered tax code but authoritative for a unit (project management) is responsible for managing and implementing the private account accounting input VAT incurred in the process of project investment by ODA, tax authorities where the Project Management Committee Executive Office made tax levels applicable to units depends for project owners units the authorization.
V. VAT REFUND PROCESS: 1. implement the reimbursement Agency: local tax authorities (provinces, cities directly under the Central Government) where the level of tax code made the reimbursement under the guidance of this circular. The case is divided into several work packages or are built in many different local and in each local private Project Management Committee, the local tax authorities where the project Owner or the latest administrative offices will make the reimbursement.
Where the import goods projects, materials, and procedures for record collecting VAT ceasing as instructed in point 1 section II of this circular shall not make the reimbursement.
2. The sequence and time of reimbursement: a. for the projects using ODA non refundable and the State budget projects non-refundable investments: after getting the records suggest a valid VAT refund of project Owners or contractors, at the latest within 3 working days The tax Bureau, the province, the city decided to send tax refund State Treasury agency sends the financial administration of the project. The main contractor in case the object is complete, the tax when the decision to tax refund, tax authorities sent a reimbursement decisions for the project Owner to track.
Case records suggest insufficient reimbursement, within 2 working days, the tax Bureau to notify the reasons for the project Owner or main contractors complete topic records.
State Treasury Agency made reimbursement for project Owner or main contractor within 2 days from receipt of the decision of tax authority tax refund.
b. projects using ODA in the form of loans from the State budget, the main contractor performed projects using ODA non refundable or projects using ODA capital investment budget is non-refundable, non triêng accounting but are VAT input of each project, the input tax deduction or reimbursement is made circular 89/1998/TT-BTC on 27/6/1998 and circular No 93/1999/TT-BTC on 28/7/1999 of the Ministry of finance.

c. for projects using ODA non refundable or projects are not refundable investment budget, has decided to invest and are implemented before the date of decision No. 223/QD-TTg of effect execution, VAT number Server project or the main contractor has charged is handled as follows :-the circumstances have made computer and submit VAT circular No. 82/1999/TT-BTC dated 30/6/1999 of the Ministry of finance, the input VAT number not yet deducted or not yet deducted ceases to be deducted or refunded under this circular.
-The case of the projects have been arranged reciprocal capital (from 1999 onwards) for local budgets or the central budget (ministries) or in the approved bid and the contract had the tax then the project Owner must use the reciprocal capital has been issued to pay VAT arises.
-The case of the projects have yet to be granted for the application to submit VAT, project Owners or contractors are VAT refund was filed as prescribed above. Complete the additional tax records certified by the competent authority regarding the funding yet for project Owners to file VAT.
Because some project Owners and contractors abroad has not been granted the tax code should the former case Home projects or foreign contractors have paid VAT but on VAT receipts or imports bills don't write the tax code of the project Owners or foreign contractors shall also resolve reimbursement according to the instructions in this circular.
3. check, settlement of VAT reimbursement: Home project or the main contractor responsible for the accuracy of the complete tax records. The case in question, the tax authorities have the right to examine the tax refund based and when completed, the project Owner or principal contractor must tax with the tax authorities as a rule.
VI. NOTES the INCREASED CAPITAL for projects using ODA loans or projects using ODA capital investment budget mixture is not reimbursed, when the decision was received reimbursement of the tax authorities, financial institutions manage the project proceed recording capital gains for Home projects. When calculating the reciprocal capital plan annually according to the instructions in circular No. 06/1998/TTLT-BKH-BTC on 14/8/1998 of the Ministry of finance and the Ministry of planning and investment, the project Owner does not have to calculate the reciprocal capital plans to file VAT.
VII. ENFORCEMENT of the PROVISIONS of this circular in force from the date of decision No. 217/1999/QD-TTg dated December 7, 1999 by the Prime Minister in effect executed and replaced the circular No. 82/1999/TT-BTC dated 30/6/1999 of the Ministry of finance.
For the local VAT refund funds not enough to return for the ODA project must report the Ministry of finance to review, adjust in accordance with decision No. 1632/1998/QD-BTC dated November 17, 1998 by the Minister of finance.
In the implementation process if something stuck, suggest the unit reflects on the Finance Ministry to consider and resolve.