If in a month/quarter, the Company both exports goods, services and sells assets domestically, it is required to record input VAT on business and production of exported goods and services in separate accounting entries in order to be eligible for consideration of tax refund (Clause 4 Article 1 of Circular No. 130/2016/TT-BTC ).
In addition, it should note that the maximum refundable VAT on exported goods, services must not exceed 10% of revenue from the export.
However, import duties on the re-exported goods shall be refunded only when such goods have not been used or undergone working or processing (Clause 2 Article 19 of the Law on Law on import and export duties).
At the same time, the re-export of goods must be done by the initial importer or a person authorized by the initial importer (Point a Clause 1 Article 34 of Decree No. 134/2016/ND-CP).
However, in order to be entitled to receive import duty refund, re-exported goods must be new, have not been used or undergone working or processing.
According to Clause 13 Article 1 of Law No. 21/2012/QH13, with regard to refundable import duty, a company may reserve for 10 years and may settle according to these forms: have the excess tax, late payment interest, and fines offset against the outstanding amounts, including the offset among the taxes; or offset against the tax, late payment interest, fines payable to the next payment; or receive the refund.
Accordingly, this provision only stops refunding VAT pertaining to investment projects of business establishments that fail to contribute capital sufficiently under the registered progress. With regard to business establishments that fail contribute capital sufficiently because the deadline for capital contribution under the progress is not reached, VAT pertaining to investment projects shall be still refunded.
However, if the goods are re-exported after July 1st, 2016, the refund of VAT shall be carried out according to Clause 3 Article 1 of Circular No. 130/2016/TT-BTC. Accordingly, enterprises shall not be refunded VAT on imported goods which must be re-exported, goods which are not exported at the customs operational areas.