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ADDENDUM 7
Published on: Mar 29, 2006 • 4:35 PM Author: Tenderi
Republic of Montenegro
Government of the Republic of Montenegro
DIRECTORATE FOR PUBLIC WORKS
Our reference: 01-739/1
Podgorica, March 28, 2006
In conformity with Article 18 of the Public Procurement Law hereby follows:
ADDENDUM 7
To Tender Documents No.05-1/06 for Construction and Commissioning of High School of Medicine and Bureau for Educational Services, Examination Centre and Centre for Vocational Education, following questions received from the tenderers having purchased tender documents.
In response to a Tenderer's questions:
1. According to the TENDER the Contractor should be a Hungarian legal entity. It means that Contractor does not have a taxepayer status in Crna Gora. If so, Contractor should pay all the VAT in Crna Gora after the export from Hungary (import VAT) and after all the goods and services Contractor purchases in Crna Gora, but he is not able to recollect this VAT.
Does that mean that the Tenderee should give all the prices including non reclaimable Crna Gora VAT?
2. Referring to your answers received until today, the system of VAT calculation reclaim of VAT and export-VAT - is still not clear.
We kindly ask you to provide a model clearly showing the mechanism of paying and reclaiming VAT in case we open a representative office in Crna Gora. This model should clearly state VAT payment and reclaim system payable after product exported from Hungary.
Providing this question will not be specified, we have to consider VAT in our offer-price as a non-refundable cost.
3. We kindly ask you to provide information about local (Crna Gora) laws, regulations...etc. that can refer to Contractor during execution of the project (in connection with this tender). If possible please send these documents in English.
Issue of the High School of Medicine
4. On the south fassade see external fixed horizontal blinds (by aluminium or any other material). There isnt item for it in Bill of Quantity. Please confirm that these elements arent part of the bid.
Please find asnwer of the Ministry of Fiance to Question 1:
1. A legal entity from Hungary undertaking construction works in Montenegro should register its subsidiary/office for payment of value added tax in Montenegro. Pursuant to the Rulebook on form and material of the VAT payer tax return (OJ of the Republic of Montenegro, No.6/02), the registration form is submitted to the authorized taxation body in this case Tax Administration Local Office Podgorica.
Please find asnwer of the Ministry of Fiance to Question 2:
2. The Hungarian business office should apply VAT by tax rate of 17% to the value of the constructed works. This office shall fill out the tax registration form for VAT Calculation for each month disregarding the fact if the works are or are not constructed for the respective month. Pursuant to the Rulebook on form and material of the VAT calculation form (OJ of the Republic of Montenegro, No. 79/05), the form shall be submitted not later than 15th day of the month for the previous month. The registration form contains export VAT for the value of the constructed works. Export VAT filled out in the form is reduced for VAT amount paid upon import and VAT contained in the received invoices that the local suppliers delivered to the Hungarian business office. In case the import VAT is higher than the export VAT, the Hungarian business branch is allowed to claim return of the excess VAT, provided the branch has no other unsettled liabilities.
VAT return is realized within 60 days as of the date of submission of the tax return.
If the Hungarian business unit is not registered for VAT payment, this unit shall delegate authorities to its representative in charge of administration works with respect to the VAT calculation and payment.
The simplest and most favourable option for the Hungarian business office is to get registered in Montenegro for VAT payment.
Please find following answer to Question 3:
3. At the Contract signing the successful Contractor wiil bw provided with all relevant information on local laws and regulations referring to the construction of works.
Please find following answer to Question 4:
4. Any item not included in the Bill of Quantity (Book II, Tender Documents) does not enter of this tender.
Please confirm receipt of this letter.
Faithfully,
Zarko Zivkovic, CE
DIRECTOR
Government of the Republic of Montenegro
DIRECTORATE FOR PUBLIC WORKS
Our reference: 01-739/1
Podgorica, March 28, 2006
In conformity with Article 18 of the Public Procurement Law hereby follows:
ADDENDUM 7
To Tender Documents No.05-1/06 for Construction and Commissioning of High School of Medicine and Bureau for Educational Services, Examination Centre and Centre for Vocational Education, following questions received from the tenderers having purchased tender documents.
In response to a Tenderer's questions:
1. According to the TENDER the Contractor should be a Hungarian legal entity. It means that Contractor does not have a taxepayer status in Crna Gora. If so, Contractor should pay all the VAT in Crna Gora after the export from Hungary (import VAT) and after all the goods and services Contractor purchases in Crna Gora, but he is not able to recollect this VAT.
Does that mean that the Tenderee should give all the prices including non reclaimable Crna Gora VAT?
2. Referring to your answers received until today, the system of VAT calculation reclaim of VAT and export-VAT - is still not clear.
We kindly ask you to provide a model clearly showing the mechanism of paying and reclaiming VAT in case we open a representative office in Crna Gora. This model should clearly state VAT payment and reclaim system payable after product exported from Hungary.
Providing this question will not be specified, we have to consider VAT in our offer-price as a non-refundable cost.
3. We kindly ask you to provide information about local (Crna Gora) laws, regulations...etc. that can refer to Contractor during execution of the project (in connection with this tender). If possible please send these documents in English.
Issue of the High School of Medicine
4. On the south fassade see external fixed horizontal blinds (by aluminium or any other material). There isnt item for it in Bill of Quantity. Please confirm that these elements arent part of the bid.
Please find asnwer of the Ministry of Fiance to Question 1:
1. A legal entity from Hungary undertaking construction works in Montenegro should register its subsidiary/office for payment of value added tax in Montenegro. Pursuant to the Rulebook on form and material of the VAT payer tax return (OJ of the Republic of Montenegro, No.6/02), the registration form is submitted to the authorized taxation body in this case Tax Administration Local Office Podgorica.
Please find asnwer of the Ministry of Fiance to Question 2:
2. The Hungarian business office should apply VAT by tax rate of 17% to the value of the constructed works. This office shall fill out the tax registration form for VAT Calculation for each month disregarding the fact if the works are or are not constructed for the respective month. Pursuant to the Rulebook on form and material of the VAT calculation form (OJ of the Republic of Montenegro, No. 79/05), the form shall be submitted not later than 15th day of the month for the previous month. The registration form contains export VAT for the value of the constructed works. Export VAT filled out in the form is reduced for VAT amount paid upon import and VAT contained in the received invoices that the local suppliers delivered to the Hungarian business office. In case the import VAT is higher than the export VAT, the Hungarian business branch is allowed to claim return of the excess VAT, provided the branch has no other unsettled liabilities.
VAT return is realized within 60 days as of the date of submission of the tax return.
If the Hungarian business unit is not registered for VAT payment, this unit shall delegate authorities to its representative in charge of administration works with respect to the VAT calculation and payment.
The simplest and most favourable option for the Hungarian business office is to get registered in Montenegro for VAT payment.
Please find following answer to Question 3:
3. At the Contract signing the successful Contractor wiil bw provided with all relevant information on local laws and regulations referring to the construction of works.
Please find following answer to Question 4:
4. Any item not included in the Bill of Quantity (Book II, Tender Documents) does not enter of this tender.
Please confirm receipt of this letter.
Faithfully,
Zarko Zivkovic, CE
DIRECTOR
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