How to handle the case where the tax imposed by the tax authority is greater than the tax payable in Vietnam?

How to handle the case where the tax imposed by the tax authority is greater than the tax payable in Vietnam?

Based on Article 53 of the Law on Tax Administration 2019 regarding the responsibility of tax authorities in tax liability imposition as follows:

Responsibility of tax authorities in tax liability imposition

1. The tax authority must notify the taxpayer in writing of the reasons for tax liability imposition, the basis for tax liability imposition, the determined tax amount, and the deadline for paying the tax.

2. In cases where the tax authority determines tax through tax inspections, tax audits, the reasons, basis, determined tax amount, and deadline for paying the tax must be recorded in the tax inspection report, tax audit report, or the tax handling decision of the tax authority.

3. If the determined tax amount of the tax authority is greater than the payable tax amount according to the complaint resolution decision of the competent authority or the court's verdict, the tax authority must refund the overpaid tax amount.

4. If the determined tax amount of the tax authority is less than the payable tax amount according to the complaint resolution decision of the competent authority or the court's verdict, the taxpayer is responsible for making additional payments. The tax authority is responsible for the tax liability imposition.

Thus, if the determined tax amount of the tax authority is greater than the payable tax amount, the tax authority must refund the overpaid tax amount.

What are cases where exports and imports are subject to tax liability imposition in Vietnam?

Based on Clause 1, Article 52 of the Law on Tax Administration 2019, exports and imports are subject to tax liability imposition in the following cases:

- The taxpayer relies on illegal documents to declare and calculate tax; fails to declare or inaccurately, incompletely declares information related to determining tax obligations;

- If after the prescribed period, the taxpayer does not provide, refuses, delays, or extends the provision of documents, accounting records, proofs, documents, data related to accurately determining the payable tax amount as prescribed;

- The taxpayer fails to prove, explain, or within the prescribed period fails to provide explanations related to determining tax obligations according to the law; fails to comply with customs authority’s inspection, audit decisions;

- The taxpayer fails to reflect or fails to fully, honestly, and accurately reflect the data in accounting books to determine tax obligations;

- The customs authority has sufficient evidence and grounds to determine incorrect value declaration inconsistent with the actual transaction value;

- Transactions executed do not conform with economic nature, actual occurrence, affecting the payable tax amount;

- The taxpayer cannot independently calculate the payable tax amount;

- Other cases discovered by the customs authority or other agencies where declarations, tax calculations do not comply with the law.

When is the deadline for paying determined tax on exports and imports in Vietnam?

Based on Clause 6, Article 17 of Decree 126/2020/ND-CP regarding the deadline for paying determined tax on exports and imports as follows:

- The deadline for paying determined tax is implemented following the provisions in Clause 4, Article 55 of the Law on Tax Administration 2019:

+ The deadline for paying taxes on supplementary declarations, paying the determined tax amount is applied according to the initial customs declaration tax payment deadline;

+ The deadline for paying taxes on goods requiring analysis, verification to accurately determine the payable tax amount; goods without official prices at the time of customs declaration registration; goods with actual payment items, and goods with adjustment items added to customs value not yet determined at the time of customs declaration registration is implemented according to the regulations of the Minister of Finance.

- exports and imports are subject to tax liability imposition but the taxpayer fails to declare on the customs declaration or declares on the customs declaration but the declaration is canceled as per customs law, imported goods processed, manufactured not remaining in their original condition as when initially imported, imported goods exempted from tax, not subject to tax being used as collateral for loans by taxpayers unable to repay debts are handled by credit institutions as per law, imported goods subject to auction as per the decision of the competent authority, court verdict, decision fall under the cases required to pay tax, the tax payment deadline is the date of issuance of the tax liability imposition decision.

- In cases of tax liability imposition for imported goods for processing, export production, imported goods not subject to tax, other goods covered by multiple customs declarations but remaining in original condition upon import, if the customs authority cannot accurately determine the quantity of goods per customs declaration, the declaration applied for tax payment deadline is the final import declaration with subject goods under tax liability imposition during the inspection, audit period.