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Gdt

Wind, solar power projects complain about VAT refunds

March 31, 2021 by vietnamnet.vn

Wind power developers, who are running against time to put their projects into operation prior to November 2021, now face another problem: they may not get a VAT (value added tax) refund because of certain regulations.

Wind, solar power projects complain about VAT refunds

Vo Duy Tan, director of Phong Lieu Wind Power JSC, said at a recent conference held by the Quang Tri provincial People’s Committee that problems in VAT refunds for wind power projects arose after the General Department of Taxation (GDT) sent a dispatch to provincial taxation agencies, noting that investors will only get a tax refund if they have electricity operating licenses.

According to Tan, the input VAT of the entire project is VND151.7 billion and in order to ease pressure on working capital, the company is applying for a tax refund. To get the tax refund, the company has to have an electricity operating license.

The problem is that under the Ministry of Finance’s (MOF) Circular 130 dated August 2016, once projects become operational, which means after construction period ends, they will not receive a VAT refund.

“This means that the project will never get a VAT refund,” he said.

Phong Lieu’s project is not the only one facing problems in VAT refunds. Tens of other projects are in the same situation.

Enterprises have asked the taxation department to reconsider the requirement on having an electricity operating license. They have committed to presenting the licenses soon after the projects begin operation.

The delay in tax refunds is expected to cause financial problems for investors and prolong project implementation. In some localities, the amount of proposed tax refunds that have not been settled are up to VND1 trillion.

A tax official said that tax refunds for projects in conditional business fields are implemented under the VAT Law, Government decrees and MOF circulars and dispatches on tightening VAT refund management.

These say that tax refunds won’t be given to enterprises that trade in conditional goods and services and cannot satisfy business conditions in accordance with the Enterprise Law and Investment Law.

Wind power developers, who are running against time to put their projects into operation prior to November 2021, now face another problem: they may not get a VAT (value added tax) refund because of certain regulations.

At a working session with 13 enterprises implementing electricity projects in Vietnam on March 18, Vu Xuan Bach, deputy general director of GDT, said the agency will try to resolve the complaints from wind power projects.

However, guidance from MOF and GDT on the issue, which the State Audit found as having problems in 2019, still has not been provided.

In a report dated February 12, 2019, the State Audit pointed out an unreasonable point in MOF’s Dispatch on July 30, 2015, which says that VAT refunds won’t be given to enterprises that trade in conditional goods and services and cannot satisfy the business conditions in accordance with the Enterprise Law and Investment Law.

This is not in line with Law No 31/2013/QH13 on amendments to the Law on Value added Tax, because the law does not mention conditional goods and services.

The State Audit also thinks that Item c, Clause 6, Article 1 of Decree 100/2016/ND-CP is not consistent with practice.

The decree doesn’t clearly stipulate the time that taxpayers have to show licenses for operation in conditional business fields.

Many enterprises can’t get licenses if they don’t have sufficient facilities. Once projects are able to meet requirements to get licenses, the projects have already become operational, and therefore, won’t get a VAT refund.

The State Audit proposed removing the regulation on not giving VAT refunds to enterprises that cannot satisfy the business conditions as stipulated in the Enterprise Law and Investment Law.

“The consultation and promulgation of MOF’s Dispatch 10492 / BTC-TCT dated July 30, 2015 on strengthening the management of VAT refund is contrary to the law on VAT refunds,” the State Audit stated.

A local taxation agency has proposed that the General Department of Taxation allow tax refunds under the proposal from the State Audit.

An auditing expert affirmed that the circulars by MOF and GDT are contrary to the principle of VAT, which says that once enterprises have paid VAT or borne input VAT in accordance with regulations, they must receive a tax deduction and refund, if any. This principle is applied in most countries.

To date, EVN has signed power purchasing contracts with 113 wind power projects with a total capacity of 6,038MW.

Luong Bang

Filed Under: feature wind power, FIT, EVN, vietnam economy, Vietnam business news, business news, vietnamnet bridge, english news, Vietnam news, vietnamnet news, Vietnam latest..., wind and solar power, wind power projects, Lake Turkana Wind Power Project, solar and wind power, wind power and solar power, solar power project, wind power project, solar power projects, Kamuthi Solar Power Project, Ultra Mega Solar Power Projects, 500kw solar power plant project report

Defense leader inspects Factory Z183

April 3, 2021 by en.qdnd.vn

After inspecting the factory’s production line and inquiring after the work performance of its staff and employees, General Truong had a working session with the unit’s leadership.

At the session, he highly valued the factory’s achievements over the past time, particularly in organizing Party congresses at all levels, fighting against the COVID-19 pandemic, and fulfilling its year-on-year growth target.

The Deputy Defense Minister required the factory’s leaders to focus on improving their business management, making use of their assigned equipment, enhancing scientific research and technical initiatives, and expanding their market.

In addition, the factory should accelerate human resource training and take care of employees’ spiritual and material lives, he noted.

* The same day, Deputy Defense Minister Rear Admiral Pham Hoai Nam had a working session with the General Department of Techniques (GDT).

At the event, Rear Admiral Nam applauded the general department’s task performance over the past time. Since the beginning of the year, the GDT has provided timely advice for the Central Military Commission and the Ministry of National Defense on military technical affairs, contributing to ensuring weapons and equipment for regular training and combat readiness missions as well as extraordinary tasks such as COVID-19 prevention and control and participating in the International Army Games 2020.

Also, relevant units of the GDT have effectively implemented scientific research, and launched competitions to test their troops’ skills and capabilities.

The Deputy Defense Minister required the GDT to improve the quality of technical maintenance in the whole military and upgrade equipment to meet their task performance in the current context.

Translated by Trung Thanh

Filed Under: Uncategorized

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