The Government issued Decree No. 49/2022/ND-CP dated 29 July 2022 to amend and supplement the regulations on details and guidelines of the Law on Value-Added Tax. This Decree takes effect on 12 September 2022 with some notable contents as follows:

• The cases where land prices are deducted for VAT calculation are as follows:

• • To be allocated land by the State to invest in infrastructure to build houses for sale, the land price deductible for VAT calculation includes land use levy payable to the state budget and compensation and ground clearance (if any).
  • At the auction of land use rights, the land price which is deducted for VAT calculation is the auction-winning land price.
  • Renting land for the construction of infrastructure, building houses for sale, the land price deductible for VAT calculation is the land rent levy payable to the state budget and compensation and ground clearance (if any).
  • If a business operation is transferred a land use right by an organization or individual, the land price deductible for VAT calculation will be the land price at the time of receiving the land use right transfer, excluding the value of infrastructure.
  • If a business operation is contributed with land use right by an organization or individual, the land price deductible for VAT calculation will be the price stated in the capital contribution contract.
  • If a real estate business fulfills the form of build-transfer (BT) payment by the value of land use rights, the land price deducted for VAT calculation will be the price at the time of signing the BT contract.
• 03 cases that a business operation is not refunded VAT but is carried over the tax amount that has not yet been deducted from an investment project according to the law on investment to the next period, including:

• • Investment projects of business operation in conditional business lines when the business conditions are not satisfied as prescribed.
  • Investment project of a business operation in conditional business lines is not guaranteed to maintain sufficient business conditions during its operation.
  • Investment projects on the exploitation of natural resources and minerals are licensed from 01 July 2016 or investment projects on the production of goods, in which the total value of natural resources, minerals, and energy costs accounts for more than 51% of product cost according to investment projects, excluding projects of exploration and development of oil and gas fields.