VAT on Machines Imported for Manufacturing Have Been Waived

The Ministry of Finance has amended the Value Added Tax (VAT) Law to streamline the process of importing machinery and equipment used for manufacturing purposes by waiving VAT taxes.

The recent changes eliminate the need for manufacturers to submit certificates of origin, cash deposits, or letters of guarantee in order to qualify for, and subsequently receive, a VAT exemption on machines, equipment, and production lines imported for industrial production and services.

Instead, manufacturers are now required to provide a pledge, either personally or through a legal representative, with a certified signature by banks, to the tax or customs authorities. This pledge assures that the applicable taxes will be paid if and when they are due.

These amendments contribute to simplifying procedures and reduce administrative burdens for manufacturers, facilitating the importation of essential machinery and equipment for production purposes.