On August 09th 2018, General Department of Tax released the Official dispatch No 3081/TCT-CS. Whereby, in case Enterprise has an investment project that constructs factory in the same province where the Enterprise locates and sets up an independent branch to implement the above-mentioned project.,this branch shall separately declare input VAT on its investment project from the VAT on its ongoing business activities in the head quarter. The maximum deductible VAT from the investment projects is equal to the VAT payable on business activities in the same period of head quarter. After deducting, if the remaining deductible VAT is VND 300 million or higher, it shall be refunded.In case the Enterprise requests the VAT refund for export goods or services, if there are both exports and domestic goods and services in a month or quarter, the Enterprise shall be required to record input VAT on its exported goods and services separately in accounting entries. The input VAT on the exported goods and services, if not feasibly recorded in separate accounting entries, shall be determined according to the proportion of the revenue of exported goods and services to the total revenue of goods and services through tax periods starting from the period that succeeds the latest tax period in which tax is refunded to the current period which tax refund is requested. If the amount of input VAT on exported goods and services remains at least VND 300 million after having been deducted from VAT on goods and services sold domestically, the business shall be received a refund of VAT on exported goods and services. The refunded amount of VAT on exported goods and services shall not exceed the revenue from such exported goods and services multiplied by 10%.
