Guidance on the management of value-added tax refund

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Tax refund procedures under the new rules are of concern to taxpayers. Photo Thu Hang.

Specifically, this circular provides guidance on the management of value-added tax refund of taxpayers of tax management agencies under the provisions of the State Budget Law, the Law on Value Added Tax, and Tax Administration Act and the guidance documents; including the receipt, settlement, inspection, inspection of value added tax refund; fund management of the value added tax refund; responsibilities of agencies, organizations and individuals involved in the management of value-added tax refund; Tax refund for goods from abroad, the Vietnamese people residing abroad upon exit; Refund of the value added tax wrongly paid or overpaid.

Taxpayers who are eligible for tax refund under the provisions of the Law on Value Added Tax determine the amount of value added tax for deduction or tax refund, submit declaration for tax refund, compile and send dossiers for VAT refund to the tax authorities.

Regarding the process for value added tax refund, the circular allows taxpayers to get the refund at tax offices or by post. Then the tax authorities will perform classification records of value added tax refund as follows: Tax refund under the provisions of the international treaties in which the Socialist Republic of Vietnam is a member, apart from tax refund under the agreement to avoid double taxation of foreign carriers; taxpayers request tax refund for the first time; taxpayers request tax refund for a period of 2 years from the time of the tax agencies handling tax evasion, tax fraud; taxpayers in the field of production and export request tax refund within 2 years from the time of the State management agencies handling smuggling, illegal transportation of goods across borders or commercial fraud; enterprises with the activities of merging, consolidation, division, separation, dissolution, bankruptcy, ownership transformation, termination of operations; transfer, sale, exchange or lease of state-owned enterprises, etc.

If the results of classified dossiers are subject to inspection before tax refund, the tax authorities shall send a notice of inspection before tax refund to taxpayers within 6 business days from the date of receiving the full dossiers requesting tax refund. If taxpayers implement electronic tax refund, notifications shall be sent to taxpayers through the electronic portal of General Department of Taxation.

Regarding the methods of determining the value added tax refund for taxpayers, in case of inspection before tax refund, the tax authorities shall check the records of taxpayers and information of taxpayers managed by the tax authorities in the database of value-added tax refund to inspect and refund under the regulations.

For tax refund dossiers subject to inspection before tax refund, the tax authorities shall carry out examination and inspection at the headquarters of the taxpayers. Based on the results of the tax inspection, tax audit, the tax authorities determine the refundable tax amounts of taxpayers. The amount of value added tax refund must be in accordance with the provisions of the Tax Administration Act and the documents guiding the implementation tax deduction and tax refund under the regulations.

In the process of settling the tax refund through examination, tax inspection, if the tax authorities discover that taxpayers have signs of law violation and are filed to the police for investigation or seized accounting records, invoices and receipts relating to the tax refund, the tax office shall notify taxpayers are not eligible for tax refund. Tax authorities will implement tax refund in case of receiving results or opinions of the police office or the competent authorities according to the law.

Circular No. 99/2016 / TT-BTC takes effect from August 13, 2016.

After the Ministry of Finance issued Circular 99, General Department of Taxation issued guidelines for Local Taxation Departments of monitoring value added tax refund records. Accordingly, from now to August 13, Local Taxation Departments must submit tax refund dossiers to implement monitoring for the following types of records: Tax refund dossiers subject to inspection before tax refund; Tax refund dossiers subject to tax refund before inspection within a year; tax refund dossiers of accumulated cases after at least twelve months from the first month or at least four quarters from the first quarter arising of value added tax which is not deductible or the value added tax of the input has not been deducted fully.

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The results of the dossiers which were sent to the General Department of Taxation until July 12, 2016 were: "The dossiers are not eligible for tax refund" Local Tax Departments shall send to the General Department of Taxation to continue to monitor the Dispatch No. 3357 / BTC-Tcy on March 14, 2016 of the Ministry of Finance on the management of value added tax refund in accordance with the law.