What are cases where a tax refund claim is subject to inspection before refund in Vietnam?
What are cases where a tax refund claim is subject to inspection before refund in Vietnam?
Pursuant to Article 73 of the Law on Tax Administration 2019, it is stipulated as follows:
Classification of tax refund claims
1. Tax refund claims are classified into claims subject to inspection before refund and claims subject to refund before inspection.
2. The claims subject to inspection before refund include:
a) claims of taxpayers requesting a tax refund for the first time for each case according to tax law. If the taxpayer submits a tax refund claim to the tax administration authority for the first time but it is not entitled to a refund as prescribed, the next request is still considered the first-time request;
b) claims of taxpayers requesting a tax refund within 02 years from the time of being penalized for tax evasion;
c) claims of organizations in the process of dissolution, bankruptcy, cessation of activities, sale, transfer, and delivery of state enterprises;
d) tax refund claims classified as high-risk tax claims under the risk management classification in tax management;
dd) tax refund claims subject to refund before inspection that have expired according to written notice from the tax authority while the taxpayer has neither explained nor supplemented the tax refund documentation or has explained and supplemented the documentation but failed to prove the declared tax amount is accurate;
e) tax refund claims for export and import goods not made through payment with commercial banks or other credit institutions as per legal regulations;
g) tax refund claims for export and import goods subject to inspection before refund according to the Government of Vietnam's regulations.
3. claims subject to refund before inspection are the claims of taxpayers not specified in clause 2 of this Article.
4. The Minister of Finance shall detail the provisions of this Article.
The claims subject to inspection before refund include the following 7 cases:
[1] claims of taxpayers requesting a tax refund for the first time for each case according to tax law. If the taxpayer submits a tax refund claim to the tax administration authority for the first time but it is not entitled to a refund as prescribed, the next request is still considered the first-time request;
[2] claims of taxpayers requesting a tax refund within 02 years from the time of being penalized for tax evasion;
[3] claims of organizations in the process of dissolution, bankruptcy, cessation of activities, sale, transfer, and delivery of state enterprises;
[4] tax refund claims classified as high-risk tax claims under the risk management classification in tax management;
[5] tax refund claims subject to refund before inspection that have expired according to written notice from the tax authority while the taxpayer has neither explained nor supplemented the tax refund documentation or has explained and supplemented the documentation but failed to prove the declared tax amount is accurate;
[6] tax refund claims for export and import goods not made through payment with commercial banks or other credit institutions as per legal regulations;
[7] tax refund claims for export and import goods subject to inspection before refund according to the Government of Vietnam's regulations.
What are cases where a tax refund claim is subject to inspection before refund in Vietnam? (Image from the Internet)
When is the place for inspection before refund in Vietnam?
According to clause 2, Article 74 of the Law on Tax Administration 2019, it is regulated as follows:
place for tax refund claim inspection
1. claims subject to refund before inspection are inspected at the headquarters of the tax authority.
2. claims subject to inspection before refund are inspected at the headquarters of the taxpayer or the headquarters of relevant agencies, organizations, or individuals.
Therefore, the place for inspecting claims subject to inspection before refund is at the headquarters of the taxpayer or the headquarters of related agencies, organizations, or individuals.
What is the time limit for inspection before refund in Vietnam?
The time limit for processing the inspection before refund is stipulated in clause 2, Article 75 of the Law on Tax Administration 2019 as follows:
time limit for processing tax refund claims
- For claims subject to refund before inspection, within 06 working days from the date the tax authority notifies the acceptance of the claim and the time limit for processing the tax refund claim, the tax authority must decide to issue a refund to the taxpayer or notify that the taxpayer’s claim is transferred to inspection before refund if it falls under the cases specified in clause 2, Article 73 of this Law or notify no refund if the claim does not meet refund conditions.
In case the information declared on the refund claim differs from the management information of the tax authority, the tax authority shall issue a written notice for the taxpayer to explain or supplement the information. The time for explanation or supplementation of the information is not counted in the time limit for processing the tax refund claim.
- For claims subject to inspection before refund, no later than 40 days from the date the tax authority issues a written notice of acceptance of the claim and the time limit for processing the tax refund claim, the tax authority must decide to issue a refund to the taxpayer or not to issue a refund if the claim does not meet refund conditions.
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Therefore, the deadline for inspection before refund is no later than 40 days from the date the tax authority issues a written notice of acceptance of the claim and the time limit for processing the tax refund claim, the tax authority must decide to issue a refund to the taxpayer or not to issue a refund if the claim does not meet refund conditions.
