Vietnam – VAT When Transferring Part Of The Project.

31 August 2021

Binh Duong Tax Department issued Official Letter No. 12482/CTBDU-TTHT dated 12 August 2021 on VAT when transferring part of the project with the following contents:

 

• An investor has the right to transfer all or part of an investment project to another investor when the conditions are satisfied as regulated by the law. In case of transferring a project subject to the issuance of an Investment Registration Certificate, the investor shall submit a dossier enclosed with the investment project transfer contract to adjust the investor to the project implementation.

 

• Conditions for transferring of all or part of a real estate project:

 

• Real estate projects to be transferred must meet statutory conditions;

 

• The transferee must be a real estate enterprise, acquire financial competence and commit to keeping conducting the business as prescribed in regulations of law, and ensure that the project is conducted under proper progress and plan.

 

• The transferor has a Certificate of the land regarding all or a portion of the transferred project.

 

• Organizations and individuals will not have to declare, calculate, and pay VAT when transferring investment projects for the production and trading of goods and services subject to VAT to enterprises and cooperatives.

 

• Enterprises are not required to declare, calculate and pay VAT for the transfer of part of the investment project to another company that continues to implement the project meeting the conditions (1) the transfer complied with the law; (2) meets the conditions for the investment project under the Law on Investment and the Law on Real Estate Business; and (3) to serve the production and business of goods and services subject to VAT when conducting the transfer.

 

• If the above conditions are not satisfied, the enterprise must declare, calculate, and pay VAT according to regulations.