2014-06-06 15:12:00

According to Civil Code, a claim is extinguished if it is not exercised within ten years. The Ministry of Finance made an amendment to Article 29 of Enforcement Rules of Value-added and Non-value-added Business Tax Act: the time period for business entities to submit VAT Input vouchers for deduction is extended from 5 years to 10 years. The new rule will be in effect on May 2nd, 2014. According to the concept of VAT, the “VAT Input” from the purchase payments can be used as deduction from “VAT Output” which is income from sales or services. For example, a VAT Input voucher obtained by a business entity on May 30th, 2014 can be used for deduction until May 29th, 2024.