If the export duty has been paid without exports in Vietnam, shall the amount of paid export be refunded?

If the export duty has been paid without exports in Vietnam, shall the amount of paid export be refunded?

According to Clause 1 and Clause 2, Article 37 of Decree 134/2016/ND-CP stipulating tax refunds for cases where taxpayers have paid import and export duties but do not have goods imported or exported or the amount of goods imported or exported is less than what was taxed; refunds are not applicable in cases with the following minimum tax amount:

Tax refunds for taxpayers who have paid import, export duties but do not have goods imported, exported or have imported, exported less than the taxed amount; no tax refund for cases with a minimum tax amount

1. Taxpayers who have paid import and export duties but do not have imported or exported goods or have imported/exported less than the taxed amount are eligible for a refund corresponding to the actual amount of goods not exported, imported or exported/imported less.

2. In cases eligible for export or import tax refunds as stipulated in Articles 33, 34, 35, 36, and 37 of this Decree, if the refundable tax amount is below 50,000 VND as per the customs declaration for tax refund procedures, no refund will be made.

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At the same time, based on Clause 2, Article 19 of the Law on Export and Import Tax 2016 stipulating cases for tax refunds as follows:

Tax refunds

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2. Goods specified in Points a, b, and c of this Clause 1 shall be eligible for a tax refund if unused, unprocessed, or unmanufactured.

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Thus, taxpayers who have paid export tax but have no export goods will receive a tax refund when satisfying the following two conditions:

- The refundable tax amount as per the customs declaration for tax refund procedures must exceed 50,000 VND.

- The export goods have not been used, processed, or manufactured.

If the export duty has been paid without exports in Vietnam, shall the amount of paid export be refunded? (Image from the Internet)

Vietnam: What does the application for duty refund for cases where export duty has been paid without exports include?

According to Clause 3, Article 37 of Decree 134/2016/ND-CP as amended by Clause 18, Article 1 of Decree 18/2021/ND-CP stipulating the application for duty refund for cases where export duty has been paid without exports includes one of the following two documents:

- 01 original Official Dispatch requesting export or import tax refund for exported or imported goods sent via the electronic data processing system of the customs authority according to the information criteria in Form No. 01 Appendix VIIa issued with Decree 18/2021/ND-CP.

- 01 original Official Dispatch requesting export, import tax refund according to Form No. 09 Appendix VII issued with Decree 18/2021/ND-CP.

What are procedures for tax refund for cases where export duty has been paid without exports in Vietnam?

Pursuant to Clause 4, Article 37 of Decree 134/2016/ND-CP stipulating the procedure for tax refunds in cases where export duty has been paid without exports as follows:

Tax refunds for taxpayers who have paid import, export duties but do not have goods imported, exported or have imported, exported less than the taxed amount; no tax refund for cases with minimum tax amount

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4. The procedures for submitting, receiving, and processing application for duty refunds are carried out according to the law on tax management.

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Simultaneously, according to Article 12 of Circular 06/2021/TT-BTC detailing tax refund procedures, the process for tax refunds in cases where export duty has been paid without exports will be conducted as follows:

- Step 1: Submit a application for duty refund

+ The taxpayer sends an Official Dispatch requesting a tax refund through the system according to the information criteria specified in Form No. 2 Appendix II issued with Circular 06/2021/TT-BTC, along with related documents as stipulated in Article 37 of Decree 134/2016/ND-CP.

+ In the case of paper dossiers, the taxpayer sends an Official Dispatch requesting a tax refund according to Form No. 03/TXNK Appendix I issued with Circular 06/2021/TT-BTC, along with related documents as stipulated in Article 37 of Decree 134/2016/ND-CP.

- Step 2: Receive and respond to the application for duty refund information

+ The customs authority where the customs declaration of exported, imported goods with a refundable tax amount is registered, carries out receiving and responding to the tax refund request dossier via the System.

+ In the case of submitting a paper dossier, the customs authority stamps receipt, logs the receipt, and processes the paper dossier.

- Step 3: Classify the application for duty refund

+ Dossiers subject to prior inspection for a tax refund are processed according to Article 22 of Decree 126/2020/ND-CP;

+ Dossiers eligible for a prior tax refund are those not falling under the cases specified in point a, clause 2, Article 12 of Circular 06/2021/TT-BTC.

+ Notify the taxpayer:

++ Within three working days from the date of receiving the application for duty refund, the customs authority notifies the taxpayer of the acceptance of the dossier, classification, and the time limit for resolving the application for duty refund through the System according to Form No. 3 Appendix II issued with Circular 06/2021/TT-BTC, or in the case of a paper notice according to Form No. 04/TXNK Appendix I issued with Circular 06/2021/TT-BTC.

++ If clarification or supplements are needed, the customs authority notifies the taxpayer through the System according to Form No. 4 Appendix II issued with Circular 06/2021/TT-BTC, or in the case of a paper notice according to Form No. 05/TXNK Appendix I issued with Circular 06/2021/TT-BTC.

- Step 4: Check the application for duty refund

+ In cases of prior tax refund: The customs authority where the tax refund amount arises inspects at the customs authority's headquarters according to Clause 1, Article 74 of the Law on Tax Administration 2019, checking the information in the tax refund request dossier against system information to determine refund eligibility, the tax amount to be refunded.

+ In cases of pre-refund inspection:

++ Within three working days from the date of signing the notification to the taxpayer about the dossier acceptance under the pre-refund inspection, the Head of Sub-Department of Customs where the refund request dossier is received must issue a Decision to inspect at the taxpayer's headquarters according to Form No. 07/TXNK Appendix I issued with Circular 06/2021/TT-BTC and send it to the taxpayer within three working days from the date of signing.

++ Within five working days from the date of signing the inspection Decision, the customs authority must conduct an inspection at the taxpayer's headquarters. The inspection period shall not exceed five working days. Before starting the inspection, the head of the inspection team must announce the inspection Decision, making a Record of announcement Decision according to Form No. 08/TXNK Appendix I issued with Circular 06/2021/TT-BTC to the authorized representative of the taxpayer.

++ In the case where the application for duty refund is complex and cannot conclude the inspection within five working days, the inspection team needs to extend the time for verification and gathering documents. At the latest, one working day before the inspection's end, the head of the inspection team must report in writing to the person who signed the inspection Decision to issue a Decision to extend the inspection time according to Form No. 09/TXNK Appendix I issued with Circular 06/2021/TT-BTC, and the extension shall not exceed five working days.

- Step 5: Issue a Tax Refund Decision

+ The Head of Sub-Department of Customs issues a Tax Refund Decision according to Form No. 13/TXNK Appendix I issued with Circular 06/2021/TT-BTC, sends a scanned copy of the Tax Refund Decision to the taxpayer and related agencies (if any) via the System, and the original Tax Refund Decision to the taxpayer and related agencies (if any).