What are regulations on classification of tax refund application in Vietnam?

What are regulations on classification of tax refund application in Vietnam?

Pursuant to Article 73 of the Tax Administration Law 2019, the tax refund application is classified into two types: applications subject to pre-refund inspection and applications subject to pre-inspection refund.

According to Clause 1, Article 33 of Circular 80/2021/TT-BTC, applications subject to pre-refund inspection are applicable in the following cases:

- The application of the taxpayer requesting a refund for the first time of each refund case as prescribed by tax law. In case the taxpayer has a refund application submitted to the tax administration agency for the first time but does not fall under the refund regulations, the subsequent refund request is still identified as the first-time refund request. Specific cases include:

+ Refund under the provisions of the Value Added Tax law, including:

++ Refund of value-added tax for goods and services purchased for investment projects;

++ Refund of value-added tax for goods and services purchased for production and business of export goods and services;

++ Refund of value-added tax for non-refundable ODA aid programs and projects;

++ Refund of value-added tax for domestically purchased goods and services funded by non-refundable aid, which does not belong to the official development assistance of foreign agencies and organizations.

+ First-time refund under the provisions of the Excise tax law.

+ First-time refund for each contract or agreement signed with organizations and individuals in Vietnam under the provisions of the Double Taxation Avoidance Agreement and other international treaties to which the Socialist Republic of Vietnam is a member.

- The taxpayer’s application requesting a refund within 2 years from the time of being penalized for tax evasion;

In case the taxpayer has multiple refund requests within 2 years, if at the first refund request after the time of being penalized for tax evasion, the tax authority examines the taxpayer's refund application, which does not exhibit the act of false declaration leading to a shortfall of the payable tax amount or an increase in the refundable tax amount as prescribed in Article 142 of the Tax Administration Law 2019.

Or the act of tax evasion stipulated in Article 143 of the Tax Administration Law 2019, then the subsequent refund requests, the taxpayer's refund applications are not subject to pre-refund inspection.

In case of detection of subsequent refund requests where the taxpayer engages in false declaration of refund applications, the act of tax evasion stipulated in Articles 142, 143 of the Tax Administration Law 2019, then the refund request applications are still subject to pre-refund inspection within the specified period of 2 years, from the time of being penalized for tax evasion.

- Refund applications upon the transfer of state-owned enterprises, dissolution, bankruptcy, termination of operations, or sale of organizations and enterprises;

In case the taxpayer under this regulation falls under the tax finalization inspection for termination of operations, the tax authority will resolve the refund based on the inspection results, without classifying the application under pre-refund inspection.

- Refund applications classified as high tax risk according to tax risk management classification;

- Refund applications subject to pre-refund but exceed the time limit stated in the tax authority's written notice where the taxpayer does not explain or supplement the refund application, or has explanations and supplements to the refund application but does not prove the declared tax amount is correct;

- Value-added tax refund applications for exported and imported goods not paid through commercial banks or other financial institutions as prescribed by law.

According to Clause 2, Article 33 of Circular 80/2021/TT-BTC, applications subject to pre-inspection refund apply in the following case: The taxpayer's application does not fall under pre-refund inspection.

What are regulations on classification of tax refund application in Vietnam? (Image from the Internet)

Which agency is responsible for receiving the tax refund application in Vietnam?

According to Clause 1, Article 72 of the Tax Administration Law 2019, the tax administration agency is responsible for receiving tax refund applications as follows:

- The tax authority directly managing the taxpayer receives the tax refund applications for the cases eligible for tax refunds as prescribed by tax law. The tax authority managing the collection receives the applications for refunds of overpaid amounts; in the case of refunds of overpaid amounts after corporate income tax finalization, personal income tax finalization, the tax authority managing the corporate income tax finalization, personal income tax finalization of the taxpayer receives the applications for refunds of overpaid amounts;

- The customs authority managing the collection receives the tax refund applications for cases eligible for tax refunds as prescribed by tax law; if foreigners or overseas Vietnamese expatriates exit with goods eligible for tax refunds, the customs authority handling the exit procedures receives the tax refund applications.

What is the place for checking the tax refund application in Vietnam?

According to Article 74 of the Tax Administration Law 2019, depending on the type of tax refund application, the location for checking the tax refund application may differ. To be specific:

- Applications subject to pre-refund are checked at the headquarters of the tax administration agency.

- Applications subject to pre-inspection refund are checked at the headquarters of the taxpayer or the premises of related agencies, organizations, and individuals.