Question: Our company specializes in manufacturing school equipment with a 10% input VAT deduction and a 5% output VAT deduction, resulting in an excess of VAT due to the difference between input and output. Can our company claim a refund for the excess VAT?
Answer:
Based on Article 8 and Article 9 of Circular No. 219/203/TT-BTC dated December 31, 2013, issued by the Ministry of Finance, providing guidelines on VAT principles for input VAT deduction.
Based on Article 3, Article 1 of Circular No. 130/2016/TT-BTC dated August 12, 2016, issued by the Ministry of Finance, providing guidelines for implementing Decree No. 100/2016/ND-CP dated July 1, 2016, issued by the Government, regulating the detailed implementation of the amended and supplemented provisions of the Law on Value-added Tax, the Law on Special Consumption Tax, and the Law on Tax Administration, and amending certain provisions in circulars on taxes.
In the case where a company specializing in manufacturing school equipment has an input VAT deduction of 10% and an output VAT deduction of 5%, if there is VAT that has not been deducted, the company is not eligible for a VAT refund for the uncredited VAT. The unrefundable VAT amount will be carried forward to the following period for further deduction.
