Compulsory document inspection at the premises of tax payers and post- tax refund

If the taxpayer doesn’t submit the payment receipts from the bank at the time of application for tax- refund or tax cancellation, the application is subjected to tax inspection at the premises of taxpayers or post – refund inspection. Photo: T.Trang.

A representative of the Customs Department analyzed that according to current regulations, the application of tax refunds on goods imported for manufacturing of goods for export or export to non-tariff areas is similar to the actual imported goods and is eligible for non-payment of export duty on exported goods providing that their materials are ensured to be totally imported.

With regards to the payment documents, as stipulated in Clause 1, Article 58 of the Tax Administration Law No. 78/2006 / QH11, which was amended and supplemented in Clause 17 Article 1 of the Law on Tax Administration No. 21/2012 / QH13, the records require written requests for tax refund and related documents.

As regulated in Clause 3 of Article 128 of Circular No. 38/2015 / TT-BTC of the Ministry of Finance, if it is determined that goods are made entirely of imported materials which are not subjected to export tax, the application for cancellation of export tax consists of payment documents if the payment is made via a bank.

Thus, in order to prove that exported goods are made entirely of imported materials and are actually exported, the claim for tax refund and tax exemption should enclose detailed payment vouchers of both imported materials and exported goods in the case where the payment is made via a bank

An application is subject to inspection before tax refund or tax cancellation if the taxpayer has not provided bank transfer receipts at the time of submitting the application for tax refund or tax cancellation as stipulated in Point g Clause 2 Article 41 of Decree No. 83/2013 / ND-CP of the Government, Point 6 of Clause 129 of Circular No. 38/2015 / TT-BTC of the Ministry of Finance.

In terms of tax guarantee on ported goods, Representatives of General Customs Department said, according to clause 3 Article 128 of Circular No.38/2015/ TT-BTC, if the goods are determined to be made entirely from imported materials and not subjected to export tax, the taxpayer must state the number of goods on the customs

To complete declaration of customs procedures, the taxpayer must pay full exporting tax or is guaranteed by credit institutions in the amount of tax payable. The Customs Authority will issue final decisions of tax refund or tax cancellation after investigating and getting sufficient evidence on the origin of exported goods.

On the examination of the Customs Agencies, a representative of the General Customs Department said, cases of tax inspection at the premises of taxpayers, before tax refund and post- refund inspection are defined in Clause 3 Article 49 of Decree No. 83/2013/NĐ-CP, Clause 3, Clause 4 Article 59, Article 130 of Circular No. 38/2015 / TT-BTC. Accordingly, the Director of Customs Department issues an inspection decision and the Head of the Customs Sub-Department controls the inspection procedures. The site inspection is carried out within 05 working days from the day on which the decision is signed. For complicated cases, the Director of Customs Department will issue a decision to extend the time limit for inspection but not more than 05 working days.

Tax inspection at the premises of taxpayers and post-refund inspection is a compulsory procedure under the provisions of the Law on Tax administration. However, the representatives of the Customs Department also emphasized that in order to facilitate enterprises importing raw materials to produce goods for export, Clause 7 Article 16 of the Law on export tax, import duty of 107/2016 / QH13 (took effective from 1-9-2016) has specified materials, supplies and components imported for manufacturing export goods subject to import duty exemption.