VAT drawback reaches 96% of estimate

	Punish 0.05% over total tax if not pay fine on time
	Strictly managing VAT refunds in the last months of 2016
	Supervision of drawback via the Tax Management System

The General Department of Tax continues to strictly control the VAT drawback from now to the end of the year. Photo: Thu Hang.

According to the General Department of Tax, until October 25^th 2016, the whole amount of the VAT refunded via the treasuries was 94,073 billion VND (equivalent to 96% of the estimate – the National Assembly approved the fund for the VAT drawback of 98,000 billion VND). Therefore, the remaining estimate of 3,927 billion VND will have been used by the end of this year. The statistics show that during the first 9 months of the year 2016, Tax administrations received 18,322 dossiers with the VAT drawback of 94,952 billion VND. In addition, 2,426 dossiers of 2015 passed to 2016 proposed 14,062 billion VND as the amount of refunded VAT. Of these, the amount of advance drawback and post audit accounted for 56.93% of the total refunded VAT. Refunded export duties made up 52.3% of the entire drawback. The amount of taxes of advance audit and post drawback accounted for 43.07% of the whole VAT. The foresaid amounts were followed by refunds for investment projects: 21.6% of the total refunded number; drawbacks for the remaining deducted VAT of 12 continuous months: 20.9%; OAD refund and others: 0.7% compared to the entire drawback.

According to the General Department of Tax, they keep strict management over the VAT drawback, ensuring application to the right persons, ensuring compliance with the tax legislation, inspecting 100% of high risk cases before refunding and enhancing inspection and post drawback audit at the same time.

Currently, the General Department of Tax is studying and developing an e-tax drawback procedure and simultaneously analyzing professional requirements that need to be computerized for meeting the drafted procedure of e-tax drawback (iHTKK, etax, TMS). In November 2016, e-drawback was piloted in 5 tax departments in Ha Noi, Ho Chi Minh City, Dong Nai, Hai Phong and Binh Duong. In December 2016, the project will be expanded in Da Nang, Can Tho, Quang Ninh, Kon Tum, Khanh Hoa, Vinh Phuc, Binh Thuan and Thai Nguyen. The target of 95% of tax-payers to be refunded via electronic means would be reached in 2017.

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Furthermore, implementing Resolution No 19 -2016/NQ-CP and Resolution No. 71/NQ-CP by the Government, the General Department of Tax has made reports to the Ministry of Finance and the Government and issued documents for directing provincial tax departments to actively control tax drawback activities as regulated in the light of the approved estimate and facilitate tax-payers; developing a coordination mechanism between the General Department of Tax and the State Treasury for e-tax drawback performance.