Select firms allowed to delay VAT on machinery imports

Businesses importing machinery in compliance with the government’s stimulus policy can delay value added tax (VAT) payment for 180 days under a decision by the Ministry of Finance on Monday.

The decision says the VAT deferment will apply to imports of machinery, equipment, components and vehicles used in projects to renovate machinery and improve technology.

The government is encouraging businesses to invest in machinery and technology under its stimulus package which subsidizes interest rates for two years.

Businesses obtaining the subsidy can delay paying the VAT for transactions between May 1 and December 31, 2009, according to the decision.

Businesses less than 365 days old can also benefit from this policy.

Minh Quang

thanhnien

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