Dec 2011 With effect from 1 January 2012, the applicable threshold for suspension of import value-added tax ("VAT") (known as "VAT on account") for companies that import raw materials which are subsequently exported, will be reduced to nil.
The new regulation allows companies to benefit from the VAT on account scheme if they merely import dutiable products, services, or investments for "partial" subsequent exportation. This is provided that the direct deductive method is adopted to calculate the import VAT due on inputs that will not be exported. Further there is no minimum customs value requirement for the import declaration for which the benefit will be applied for.
