How to handle late issuance of the tax refund decision due to the fault of the tax authority in Vietnam?

Is the taxpayer informed of the tax refund schedule in Vietnam?

Based on Clause 5, Article 16 of the Law on Tax Administration 2019:

Rights of taxpayers

1. To receive support and guidance in tax payment processes; to be provided with information and documents to fulfill tax obligations and benefits.

2. To receive documents related to tax obligations from competent authorities during inspections, examinations, and audits.

3. To request explanations from tax authorities regarding tax calculations, tax assessments; to request verification of the quantity, quality, type of export and import goods.

4. To have information kept confidential, except for information required to be provided to competent state authorities or publicly disclosed tax information as prescribed by law.

5. To enjoy tax incentives, tax refunds as prescribed by tax law; to be informed of the tax refund schedule, the amount of tax not refunded, and the legal basis for the non-refunded tax amount.

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The taxpayer has the right to be informed of the tax refund schedule.

How to handle late issuance of the tax refund decision due to the fault of the tax authority in Vietnam? (Image from the Internet)

What is the time limit for issuing a tax refund decision in Vietnam?

Based on Clauses 1, 2, Article 75 of the Law on Tax Administration 2019, the tax refund claim processing times are as follows:

For dossiers subject to a pre-refund audit, the tax authority must issue a tax refund decision or notify the taxpayer of the transfer of their dossier for a pre-refund inspection, or notify the taxpayer of non-refund if the dossier is not eligible for a refund no later than 6 working days from the date the tax authority notifies the taxpayer of the acceptance of the dossier and the processing time.

For dossiers subject to a pre-refund inspection, the tax authority must issue a tax refund decision or notify the taxpayer of non-refund if the dossier is not eligible for a refund no later than 40 days from the date the tax authority notifies the taxpayer in writing of the acceptance of the dossier and the processing time.

How to handle late issuance of the tax refund decision due to the fault of the tax authority in Vietnam?

Based on Clause 3, Article 75 of the Law on Tax Administration 2019:

Tax refund claim processing time

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3. Beyond the time limits stipulated in Clauses 1 and 2 of this Article, if the late issuance the tax refund decision is due to the fault of the tax authority, in addition to the refund amount, the tax authority must also pay interest at a rate of 0.03% per day on the refunded amount and the delayed days. The interest payment is sourced from the central budget as stipulated by the law on the state budget.

if the late issuance the tax refund decision (beyond the refund time) is due to the fault of the tax authority, the tax authority must refund the tax amount.

Additionally, the tax authority must also pay interest at a rate of 0.03% per day on the refunded amount and the number of delayed days.

What are submission methods of tax refund claims in Vietnam?

Based on Article 72 of the Law on Tax Administration 2019:

Receipt and response to tax refund claim

1. The tax authority is responsible for receiving tax refund claims as follows:

a) The tax authority directly managing the taxpayer receives the tax refund claim for cases eligible for a tax refund as stipulated by tax law. The tax authority managing the tax collection receives the tax overpayment refund dossier; in case of refunding the tax overpayment according to the corporate income tax settlement, personal income tax settlement, the tax authority receives the corporate income tax settlement, personal income tax settlement dossier of the taxpayer to receive the tax overpayment refund dossier;

b) The customs authority where the tax collection is managed receives tax refund claims for cases eligible for a tax refund as stipulated by tax law; in case foreigners or overseas Vietnamese exiting the country have goods eligible for a tax refund, the customs authority at the exit procedures point receives the tax refund claim.

2. Taxpayers submit tax refund claims through the following methods:

a) Direct submission at the tax authority;

b) Submission by post;

c) Electronic submission through the electronic transaction portal of the tax authority.

3. Within 3 working days from the date of receiving the tax refund claim, the tax authority shall classify the dossier and notify the taxpayer of the acceptance of the dossier and the processing time or notify the taxpayer in writing if the dossier is incomplete.

4. The Minister of Finance shall detail this Article.

taxpayers can submit tax refund claims through the following 3 methods:

- Direct submission at the tax authority;

- Submission by post;

- Electronic submission through the electronic transaction portal of the tax authority.