DGT Circular Letter No. SE-32/PJ/2016 dated 18 July 2016
PROCEDURES FOR IMPLEMENTING AND ADMINISTERING OF GRANTING EXEMPTION FROM VAT ON IMPORT AND/OR TRANSFERRING PARTICULAR STRATEGIC TAXABLE GOODS FACILITY
Taxable entrepreneur which eligible for getting exemption from VAT are:
- Taxable entrepreneur who Importing machinery and manufacturing equipment in one package excluding spare parts, either build in or knock down, which will be used for producing taxable goods belong to such taxable entrepreneur.
- Taxable entrepreneur who receive machinery and manufacturing equipment in one package excluding spare parts, either build in or knock down, which will be used for producing taxable goods belong to such taxable entrepreneur.
Taxable entrepreneur must get statement of dispensation on VAT strategic taxable goods before importing and/or receiving such goods.
Taxable entrepreneur must apply such document to DGT through head of tax office.
Head of tax office must make a decision at the latest 5 days after receiving a complete application.
Head of tax office may annul the statement of dispensation when there is:
- Mistyping and/or miscalculation.
- Any data and/or information which show the taxable entrepreneur is not eligible for obtaining such facility.
When there is mistyping and/or miscalculation taxable entrepreneur may ask for annulment and reissuance of statement of dispensation attached with original statement of dispensation and reason for annulment.
Head of tax office must reissue new statement of dispensation within 2 days after receiving a complete request.
When there is a new data and/or information which shows the taxable entrepreneur is not eligible for the facility, head of tax office may issue statement of annulment of statement of dispensation ex officio.
