Procedures for electronic tax refund should be more simplified

A Customs newspaper reporter had a talk with Mr. Mac Quoc Anh (photo), General Secretary cum Vice Chairman of the Hanoi Small and Medium and Small Enterprises Association about this matter.

To implement E-Government at the request of Resolution No. 35/2016/NQ-CP on supporting and developing enterprises by 2020, the Ministry of Finance is requested to issue many measures including electronic VAT refund of the Taxation. Until now, after nearly half of pilot implementation in 13 provinces and cities, the electronic tax refund program is going to be implemented nationwide. What do you think about this application?

In the past, because the tax agencies did not apply information and technology, enterprises used to take a lot of time to implement the tax refund or several months due to document problems and even a year. Only large and reputable companies with experienced staff on financial work could receive the tax refund quickly. Those which did not have specialized staff with good knowledge of tax refund procedures, it might take a long time to implement the tax refund. Thus, many enterprises were tired of this stage.

Currently, the Taxation has piloted electronic tax refunds in 13 provinces and cities over the country with the expectation that e-tax software will help the process of tax returns faster and more accurately. When using this application, I think that enterprises will save a lot of time and travel costs because, in the past, most businesses used to use Excel software and paper documents, now all processes are handled electronically. Enterprises just stay at their offices or at home to implement the procedure for tax refund rather than come to the single window division. In particular, the FDI enterprises shall receive many benefits because they have used this application successfully in other countries.

In my opinion, the quick tax refund will help the State increase budget revenues. A tax refund is also a significant amount for enterprises to reinvest, operate their business as well as ensure the stability and reproduce. For the enterprise, tax refunds are also money, "blood" of the business, the faster, the money is circulated, the faster, enterprises grow, thereby contributing to the budget more and more. This will create an enabling business environment for enterprises.

Hanoi is one of the first cities that pilot the VAT refund application. How do the enterprises react, Sir?

Enterprises in Hanoi highly appreciated this application because it will save time, costs and human resources to implement procedures on a tax refund.

Enterprises do not meet difficulties in electronic equipment for an electronic tax refund because most enterprises invested in technology, especially accounting software compatible with the application. Through a survey, we found that the electronic tax refund helps enterprises save 50% of human resource besides the relevant costs. Moreover, from the beginning, the Tax agencies constantly organize training courses to guide enterprises to access and use this application easily and fluently.

However, it is still difficult to synchronize network establishments. This is a technical issue so I think it will take the time to solve.

In order, the electronic VAT refund application to be a practical application, contributing to promoting the business and production activities of enterprises, what must the Taxation do in the coming time, Sir?

Although the electronic tax refund application reduces and simplifies the procedures, many enterprises reacted that the procedures at many stages are still cumbersome. In the point of enterprises’ view, we hope the procedures are as simple and fast as possible. I expect that the Taxation will regularly contact and consult enterprises, thereby we can give comments on amending and reducing procedures and stages so that the application becomes better and more friendly with the business community because enterprises always wish simple administrative procedures which should only account for a small part of production and business.

Moreover, besides investments in technical infrastructure, the Taxation also makes a careful preparation and organizes a training course for tax officers. The application is good but the operators are not good, it is difficult to carry out.

The Taxation should further disseminate to tax agents because small and medium enterprises that do not have staff in charge of finance and accounting need support from the tax agents.

We also wish that the electronic VAT refund application shall be deployed synchronously over the country because many enterprises have their agents and branches in many other provinces and cities. When the application is deployed synchronously, the tax refund shall be implemented more fluently.

Thank you,