The National Assembly’s Law No. 106/2016/QH13 dated April 6th, 2016 on amending, supplementing to a number of articles of the Law on value added tax, the Law on excise tax and the Law on tax administration

This Law is to amend, supplement to these 3 Laws:

1. The Law on value added tax No. 13/2008/QH12 which has been amended, supplemented according to Law No. 31/2013/QH13:

2. The Law on excise tax No. 27/2008/QH12 which has been amended, supplemented according to Law No. 70/2014/QH13

3. The Law on tax administration No. 78/2006/QH11 which has been amended, supplemented according to Law No. 21/2012/QH13 and Law No. 71/2014/QH13

Accordingly, one of the important amendments of this Law is that the tax refund is not provided for the case in which the input VAT has not been fully deducted after the accumulation of 12 months or 04 quarters. Under the new Law, the VAT amount which has not been fully deducted in a month/quarter (including the case of accumulation of 12 months or 04 quarters) shall be only transferred to the deduction of the next period instead of the refund

For investment projects, the tax shall not be refunded instead of being transferred to the next period for deduction in these cases:

a) Investment projects of business establishments that do not contribute sufficient charter capital according to the registration; engage in conditional business lines, sectors when they fail to meet the business conditions or fail to maintain the eligibility for the business during the operation

b) Investment projects on exploitation of minerals, natural resources licensed from July 01st, 2016 or investment projects on production of goods, products with the total value of the minerals, natural resources added energy expenses accounting for 51% product price or more according to the investment projects

However, with respect to the tax administration domain, this Law reduces the fine rate on late payment of tax from 0.05% to 0.03%/day

This Law shall takes effect from July 01st, 2016. Clause 4 Article 3 of this Law shall take effect from September 01st, 2016.