Vietnam: What does the application for VAT refund for re-imported exports include?

Vietnam: What does the application for VAT refund for re-imported exports include?

According to the provisions of Clause 2, Article 33 of Decree 134/2016/ND-CP, as amended by Clause 18, Article 1 and Point d, Clause 20, Article 1 of Decree 18/2021/ND-CP, the VAT refund dossier for cases where exported goods need re-importation includes:

[1] Official Dispatch requesting a refund of export tax, import tax 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

Download or Official Dispatch requesting refund of export or import tax according to Form No. 09 Appendix VII Download issued with this Decree: 01 original copy.

[2] Payment documents for exported, imported goods in cases where payment has been made: 01 photocopy;

[3] Export and import contract and invoice according to the export and import contract for the case of buying and selling goods; entrusted export and import contract if it is in the form of entrusted export and import (if any): 01 photocopy;

[4] For goods that need to be re-imported due to foreign customers' refusal to receive goods or no recipient according to the shipping company's notice, there must be an additional notice from the foreign customer or an agreement document with the foreign customer regarding the repatriation of goods or a notice from the shipping company about there being no recipient, stating clearly the reasons, quantity, and type of goods returned in cases where goods are returned by customers: 01 photocopy;

In cases due to force majeure or taxpayers themselves detect errors in goods and re-importation, this document is not required, but the reason for re-imported goods must be clearly stated in the Official Dispatch proposing a tax refund;

[5] For exported, imported goods mentioned at Point b, Clause 1, Article 33 of Decree 134/2016/ND-CP, a notification document from postal enterprises, international express delivery services regarding the failure to deliver to the recipient must be additionally submitted: 01 photocopy;

Vietnam: What does the application for VAT refund for re-imported exports include? (Image from the Internet)

Is VAT refund part of tax administration content in Vietnam?

Pursuant to Article 4 of the Tax Administration Law 2019, the regulations are as follows:

Content of tax administration

1. Tax registration, tax declaration, tax payment, tax assessment.

2. Tax refund, tax exemption, tax reduction, no tax collection.

3. Postponement of tax debts; write-off of tax debts, late payment money, fines; exemption from late payment money, fines; no calculation of late payment money; extension of tax payment; gradual payment of tax debts.

4. Management of taxpayer information.

5. Management of invoices, documents.

6. Tax inspection, tax examination and implementation of prevention measures, control, promptly stop violations of the tax law.

7. Enforcement of administrative decisions on tax administration.

8. Handling administrative violations regarding tax administration.

9. Resolving complaints, denunciations regarding tax.

10. International cooperation on tax.

11. Propaganda, support for taxpayers.

Accordingly, according to the above regulations, VAT refund is indeed part of tax administration content.

What are the 8 principles of risk management in tax administration in Vietnam?

According to Article 4 of Circular 31/2021/TT-BTC which stipulates the principles of risk management in tax administration as follows:

- Applying risk management ensures the effectiveness and efficiency of tax administration; encourages and facilitates taxpayers to voluntarily comply well with tax and tax administration laws while preventing, detecting, and promptly dealing with violations of tax and tax administration laws.

- Risk management information is collected from internal and external sources of the tax authority (including information from abroad) in accordance with the law; centrally managed at the General Department of Taxation through an IT application system and processed, shared, and provided to tax authorities at all levels, and other state management bodies for tax administration purposes according to the law.

- Assessment and classification of tax law compliance and taxpayer risk levels are conducted automatically, periodically, according to one or a combination of methods stipulated in Circular 31/2021/TT-BTC based on legal provisions, tax administration processes, measures, based on taxpayer segmentation, criteria specified in Circular 31/2021/TT-BTC, and taxpayer data.

- Based on the results of assessing tax law compliance, classifying taxpayer risk levels, information available on tax administration support applications, information signs of violations, other risk signs provided at the decision-making time, the tax authority performs:

+ Decide on inspections, examinations, supervision, apply appropriate professional measures.

+ Develop plans to enhance overall compliance suitable with the resource capacity of the tax authority based on the analysis of the nature of behavior, reasons, and scale of each level of tax law compliance, risk level.

- In cases where the legal provisions, regulations in Circular 31/2021/TT-BTC and other risk management-related regulations, guidance are correctly applied, tax officials are exempt from personal liability as per the law.

- If risk management application encounters issues or does not meet the requirements for risk management application as stipulated in Circular 31/2021/TT-BTC, manual risk management is implemented by approving proposal documents or issuance documents signed by authorized personnel applying professional tax administration measures as stipulated in Tax Administration Law 2019 and accompanying documents.

- Any changes in information leading to changes in tax law compliance evaluation results and taxpayer risk classification, if the risk management application does not automatically adjust the compliance and risk levels, the update of evaluation results is manually executed by the tax official after receiving approval from authorized personnel.

- The application results of professional measures corresponding to risk ranking levels must be updated fully and accurately into the tax administration support applications of the tax authority or the risk management application for each specific case, serving the improvement and implementation of tax law compliance evaluation and taxpayer risk classification in the next cycle.