Rights and obligations of commercial banks and enterprise operating goods eligibled for VAT refunds

VCN - In order for the relevant laws to be effective, in Circular 92/2019/TT-BTC amending and supplementing a number of articles of Circular 72/2014/TT-BTC on refund of Value Added Tax on goods of foreigners and overseas Vietnamese taken with them upon exit which will take effect from July 1, 2020 (referred to as Circular 92) specifying rights and obligations of commercial banks and enterprises operating goods eligible for VAT refunds.
tin nhap 20200224133515
Customs officials of Tan Son Nhat International Airport Customs Branch implemented VAT refund procedures for goods of foreigners taken with them upon exit. Photo: Thu Hòa

For sales enterprises

According to the General Department of Vietnam Customs, the authority in charge of drafting Circular 92, the VAT refund management system for goods of foreigners purchased in Vietnam taken with them upon exit (VAT-RS system) was put into operation since 2015 by the Customs authority has no function of tracing back to determine that the foreigner's invoice presented is correct as produced by the enterprise.

In addition, when an enterprise operating goods eligible for VAT refund changes the sales location and name of the enterprise but has not reported to the tax and customs authority for updating the VAT refund system for foreigners and the website of tax authorities yet. Thus, when looking up the list of enterprises eligible for VAT refunds on the VAT refund system for foreigners and the tax office's website, it did not match the invoice and tax refund declaration. So, the border gate customs authority declined to refund tax.

For synchronizing and detailling regulations of these provisions in order to be suitable with reality, in Clause 3, Article 1 of Circular 92, Clauses 2, 6, 7 and 8 of Article 6 of Circular 72/2014/TT -BTC in the direction of adding rights and obligations of the enterprises operating goods eligible for VAT refund in filling full information into the VAT-RS system. At the same time, dealing with case of system failure and management, use of invoices and electronic tax refund declaration as prescribed in Clause 1, Article 1 of Circular 92 amending and supplementing Clause 3, Article 14 and Clauses 2 and 3 of Article 15; Clause 1, Article 18 of Circular 72/2014/TT-BTC.

Accordingly, Circular 92 stipulated that enterprises registering the right address and take responsibility before law for VAT refund registration. In case of adjustment or termination of selling goods eligible for VAT refunds, they must make adjustments or termination as in Article 14 of Circular 72/2014/TT-BTC.

Circular 92 also specified the conditions, dossiers, and procedures for selecting enterprises operating goods eligible for VAT refunds. Accordingly, enterprises operating goods eligible for VAT refunds to be selected must meet the following conditions: They must have head offices, branches and shops of enterprises; location of shop for enterprises; they must comply with the regulations on accounting, invoices and documents as prescribed; VAT declaration and payment following the deduction method.

In addition, Circular 92 also amended the provisions in Clause 3, Article 14 of Circular 72/2014/TT-BTC in the direction of applying strict sanctions for enterprises that violate the regulations. Depending on the seriousness of violations, the tax authority would handle from the administrative sanctions to the termination of the sale of goods eligible for VAT refunds.

For banks participating

On July 24, 2017, the General Department of Vietnam Customs issued Decision 2377/QD-TCHQ regulating the standard of messages exchanged between the General Department of Vietnam Customs and commercial banks and enterprises in the system of VAT refund for foreigners. However, the VAT-RS system was only designed to exchange information with commercial banks. In particular, commercial banks had to design compatible information indicators to exchange information with Customs authorities. So far, no banks have joined the VAT-RS system of the General Department of Vietnam Customs.

Therefore, in Clause 4, Article 1 of Circular 92 supplemented that commercial banks are granted accounts to access and participate in the VAT-RS system as prescribed.

Also, Clause 11, Article 1 of Circular 92 specified conditions and procedures for selecting commercial banks as VAT refund agents. According to the General Department of Vietnam Customs, the documents provided by that the commercial bank for selection must be available documents issued by competent state authorities.

Circular 92 specified clearly that commercial banks must perform checking boarding/ship boarding cards; invoice and VAT refund declaration; check the system of information on people on exit, goods and confirm of the customs authority agreed to refund tax and the amount of tax refund; send VAT invoice information on the VAT-RS system to the Customs and Tax authorities.

In case the information about the name of passenger on the boarding card was not consistent with the information on the invoice and tax refund declaration that was checked and verified by the customs authority, the commercial bank should exchange and verify with the customs authority. If the information exchanged with the Customs authority did not match the information on the boarding card, the commercial bank would refuse to refund the tax and notify on the system.

By Đảo Lê/Thanh Thuy

Related News

Reduce operating interest rates to promptly support businesses

Reduce operating interest rates to promptly support businesses

VCN - For the first time in two years, the State Bank of Vietnam (SBV) has decided to cut some operating interest rates from 0.5-1%. According to experts, this is a very flexible and timely decision.
Ensuring the stable development of the real estate market

Ensuring the stable development of the real estate market

VCN - The Government has just issued Resolution No. 33/NQ-CP dated March 11, 2023 on a number of solutions to remove and promote the safe, healthy and sustainable development of the real estate market. The Government requires regular monitoring and effective supervision of the market situation in order to promptly take appropriate measures and solutions to prevent the market from "hot development" or "freezing", the situation of launching rumors spread, and speculation blew up real estate prices to make a profit, the imbalance between supply and demand and ensure healthy operation according to the market mechanism.
Which group of objects can use e-invoices generated from cash registers?

Which group of objects can use e-invoices generated from cash registers?

VCN - To help taxpayers better understand electronic invoices (E-Invoices) created from cash registers connected to tax authorities so that they are no longer afraid to use them, Ms. Nguyen Thi Lan Anh, Director of The Tax Administration Department of Small and Medium Enterprises, Business Households and Individuals (General Department of Taxation) has shared more details about this content.
Hanoi: Determine to launch effectively e-invoice initialized from cash register

Hanoi: Determine to launch effectively e-invoice initialized from cash register

VCN - Hanoi Tax Department strengthens guidance and supports and urges taxpayers in the group to deploy electronic invoices (e-invoice) created from cash registers connected to tax authorities.

Latest News

Customs creates maximum facilitation for agricultural exports

Customs creates maximum facilitation for agricultural exports

VCN - With that goal, Customs at all levels always give priority to propagating and mobilizing enterprises, individuals and organizations to coordinate with Customs authorities to carry out administrative reform and customs modernization activities.
Goods imported from export processing enterprises must pay tax

Goods imported from export processing enterprises must pay tax

VCN - According to the provisions of the Law on Import and Export Duties, if a domestic enterprise imports products of export processing enterprises, they must pay tax.
GDVC perform tasks in second quarter of 2023

GDVC perform tasks in second quarter of 2023

VCN- On April 4, the General Department of Vietnam Customs (GDVC) held an online conference to review performance in the first quarter and set out the task in the second quarter of 2023.
Facilitates import and export enterprises amid difficult context

Facilitates import and export enterprises amid difficult context

VCN – Making great efforts to create favourable conditions for businesses and promoting import and export growth are key contents concluded by Deputy Director General Hoang Viet Cuong at the online conference to review performance in the first quarter and set out the task in the second quarter of 2023, held by the General Department of Vietnam Customs (GDVC) on April 4.

More News

Da Nang International Terminal a certified 4-star terminal

Da Nang International Terminal a certified 4-star terminal

VCN- Da Nang International Terminal officially becomes the first terminal certified a 4-star terminal in Vietnam by SkyTrax.
Dong Nai Customs: understand the business situation to develop effective support solutions

Dong Nai Customs: understand the business situation to develop effective support solutions

VCN – Administrative reform and business support have been effectively promoted by Dong Nai Customs Department when businesses in the province are facing many difficulties and a sharp decline in imports and exports.
Lang Son: Import-export turnover grow 71%

Lang Son: Import-export turnover grow 71%

VCN - Since the Chinese side reopened import and export activities, the flow of goods cleared through border gates in Lang Son province has increased significantly. Accordingly, in the first quarter, the total import and export turnover of goods through Lang Son province increased by 71% over the same period in 2022.
HCM City Customs Department facilitates and resolves difficulties for enterprises

HCM City Customs Department facilitates and resolves difficulties for enterprises

VCN – The Customs branches under HCM City Customs Department has provided solutions to facilitate trade and resolves difficulties for enterprises.
Lang Son: Goods rushing to border gate increases sharply, potential risk of congestion

Lang Son: Goods rushing to border gate increases sharply, potential risk of congestion

VCN - At this time, on average, there are about 500 vehicles transporting goods from inland to Lang Son waiting to carry out export procedures to China every day. By the end of March 27, the number of vehicles transporting goods backlogged in border areas reached 950 vehicles, including 787 vehicles transporting agricultural products waiting for export procedures.
Bac Ninh Customs committees to listen and share difficulties with enterprises

Bac Ninh Customs committees to listen and share difficulties with enterprises

VCN – Bac Ninh Customs Department held the first dialogue with the enterprise about the customs field in 2023 on March 29.
Ho Chi Minh City Customs removes obstacles for logistics businesses

Ho Chi Minh City Customs removes obstacles for logistics businesses

VCN - At the morning coffee program recently held by Ho Chi Minh City Logistics Association (HLA), with the participation of 70 logistics enterprises, leaders of Ho Chi Minh City Customs Department answered many issues related to the management policy of cargo handled before and after customs clearance at the seaport.
Bac Ninh Customs considers satisfaction of businesses to assess efficiency of customs reform

Bac Ninh Customs considers satisfaction of businesses to assess efficiency of customs reform

VCN – The facilitation and streamlining of administrative procedures; receiving and processing 100% of administrative procedures in a timely fashion are goals set by Bac Ninh Customs Department to better serve businesses and people.
HCM City Customs make efforts in budget collection

HCM City Customs make efforts in budget collection

VCN - Many goods imported through HCM City port in the first two months of the year declined, pulling the State budget revenue of the Ho Chi Minh City Customs Department down by more than VND1,000 billion. In addition to trade facilitation, HCM City Customs Department continues to implement measures to combat revenue loss to increase budget revenue in a difficult period.
Read More

Your care

The system has not recorded your reading habits.

Please Login/Register so that the system can provide articles according to your reading needs.

Latest Most read
Customs creates maximum facilitation for agricultural exports

Customs creates maximum facilitation for agricultural exports

VCN - With that goal, Customs at all levels always give priority to propagating and mobilizing enterprises, individuals and organizations to coordinate with Customs authorities to carry out administrative reform and customs modernization activities.
Goods imported from export processing enterprises must pay tax

Goods imported from export processing enterprises must pay tax

VCN - According to the provisions of the Law on Import and Export Duties, if a domestic enterprise imports products of export processing enterprises, they must pay tax.
GDVC perform tasks in second quarter of 2023

GDVC perform tasks in second quarter of 2023

VCN - According to the report at the conference, the Customs revenue in the first quarter decreased by 17% to VND 91,267 billion compared with the previous year, meeting 21.5% of the estimate.
Facilitates import and export enterprises amid difficult context

Facilitates import and export enterprises amid difficult context

VCN - The Customs sector has made a great effort and achieved remarkable results, especially in anti-smuggling and drug prevention.
Da Nang International Terminal a certified 4-star terminal

Da Nang International Terminal a certified 4-star terminal

VCN - Recently, Da Nang International Terminal Investment and Operation Joint Stock Company (AHT) announced that Da Nang International Terminal is certified by Skytrax as the first 4-star terminal in Vietnam. Skytrax is an international air transport rati
Mobile Version