Official letter No. 13751/BTC-CST dated December 2nd, 2021 of the Ministry of Finance regarding reply to proposals of voters.

Reply to the proposal to supplement to the regulations on refund of value added tax (VAT) with regard to projects of expansion investment, the Ministry of Finance said that it will study, report to the authorities for consideration to amend to the Law on VAT at a suitable time.

With regard to the proposal to include the charges for transfer of foreign currency into charter capital in order to be eligible for VAT refund, the Ministry of Finance requests to implement in accordance with applicable regulations at clause 3 Article 1 of Law No. 106/2016/QH13 and clause 34 Article 4 of the Law on Enterprises No. 59/2020/QH14 .

Accordingly, business establishments are refunded input VAT only when they contribute adequate charter capital, in which “charter capital” means the total value of assets that have been contributed or promised by the owners.