Firms to get VAT extension

October 27, 2012 | 09:42

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Some small fry and labour-intensive businesses will continue enjoying a three-month value added tax extension.

The Ministry of Finance has just released Document 175/2012/TT-BTC to guide additional three month extension of value added tax (VAT) for enterprises, which should have been paid in June. This is to be included in Resolution 13/NQ-CP dated May 10, 2012 as part of solutions for easing firms' difficulties.

Accordingly, instead of VAT payments for June, 2012 in January, 2013 as stipulated in Resolution 13, these enterprises will have until April, 2013 to pay this tax. The VAT payments for April and May, 2012 will still be paid in January, 2013 as previously regulated.

Under Resolution 13, extension of tax payment was applied for small and medium-sized enterprises (excluding enterprises operating in the field of lottery, securities, finance, banking, insurance, and production of commodities and services subjected to special consumption tax); and labor-intensive enterprises engaging in production and processing of agriculture, forestry and aquaculture products; garments; footwear, electronic equipment; socio-economic infrastructure works.

Deputy Minister of Finance Vu Thi Mai said this policy would partly help enterprises decrease difficulties in sourcing capital to stabilise their business and production in amid a difficult economy.

The extension is expected to benefit 200,000 businesses, thus allowing businesses to have VND11 trillion ($528 million) worth of capital to serve their production and business needs.