ANNUAL VAT EXEMPTION CERTIFICATE FOR OIL COMPANIES, THEIR SUBCONTRACTORS, AND MINING COMPANIES

The 2016 Tax Annex has amended the process of VAT exemption granted to oil companies, their subcontractors, and mining companies.

From now, they benefit of an unique exemption certificate (Cf. Att.1) valid for all their transactions made during a calendar year.

This procedure have been clarified by an administrative note made by the Tax Director as detailed below.

1 - The conditions to obtain the annual VAT exemption certificate

  • How to obtain the certificate ?

Oil companies, their subcontractors, and mining companies must send a request letter (Cf. Att.2) to the ‘’Directeur des Grandes Entreprises’’ for obtaining the annual VAT exemption certificate.

This request letter must be transmitted with the following documents :

  • Three signatures specimens ;
  • A list of the main suppliers of goods and services ;
  • A list of subcontractors or oil suppliers (only for oil companies) ;
  • A copy of research expenditures receipt ;

NB : Request letters sent to the ‘’Directeur des Grandes Entreprises’’ from oil companies subcontractors must be signed first, by the concerned oil company.

  • Required informations to be mentioned on this certificate ?

The annual VAT exemption certificate delivered by Tax Administration to oil companies, their subcontractors, and mining companies must mention the following informations :

  • A registration number ;
  • The duration ;
  • The stamp and signature of the ‘’Directeur des Grandes Entreprises’’.

In the absence of one of these mentions, the certificate is not valid.

NB : An annual decree soon available on the website of the Tax Direction will list oil companies and their subcontractors, and mining companies benefiting from the exemption of VAT.

This decree is valid from the date of its publication until december 31st of each year.

2 - How to use the annual VAT exemption certificate ?

For all purchases and services made by oil companies, their subcontractors, and mining companies, a secured stamped certificate must be delivered to their suppliers.

The certificate to deliver to suppliers must include :

  • A security hologram ;
  • The stamp of the company benefiting of the VAT exemption ;
  • The signature in conformity with one of the specimen ;
  • Details concerning the supplier (name of the supplier, his location, his stamp, his signature etc) ;
  • References number of the invoice ;
  • An authentification number given by the beneficiary company ;

In the absence of one of these mentions, the certificate is not valid.

A copy of the authenticated certificate must be retained by the beneficiary of the exemption in order to present it on administrative request.

3 - Invoices issued before the 2016 tax annex and pending exemption certificates requests

  • Invoices issued before the 2016 tax annex

Invoices issued before the 4th of January 2016 are admitted under the following conditions :

  • Be issued for less than 12 months (from 4 January 2016) ;
  • Not be in pending of VAT exemption certificate ;

  • Pending exemption certificats requests

Certificates requested before the 4th of January are treated according the former system.

However, companies can decide to withdraw their requests in order to apply the new procedure.

In this case, they must fill a form available on Tax Direction website. Once filled, this form must be submitted to tax office with copies of transmission slips.

For any further information, please contact us at the following email address[1] :

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Thanks & Best Regards,
Ursula DUTOZIET


[1] - Your email must be sent "To the attention of Mrs Ursula DUTOZIET, Tax Manager"