What are the 7 cases of inspection before refund in Vietnam?

What are the 7 cases of inspection before refund in Vietnam?

Based on Clause 2, Article 73 of the Law on Tax Administration 2019, the dossiers subject to inspection before refund include the following cases:

(1) The dossier of the taxpayer requesting a refund for the first time in each tax refund case according to tax law. If the taxpayer has submitted a tax refund claim to the tax administration authority for the first time but does not qualify for a refund, then the next refund request is still considered the first refund request.

(2) The dossier of the taxpayer requesting a refund within 2 years from the time of being penalized for tax evasion.

(3) The dossier of an organization that is undergoing dissolution, bankruptcy, termination of operation, sale, transfer, or state enterprise transfer.

(4) The tax refund claim classified as high-risk according to tax risk management classification.

(5) The tax refund claim falls under the pre-refund category, but upon expiration according to a written notice from the tax administration authority, the taxpayer does not provide an explanation or supplement the tax refund claim, or provides but fails to prove the declared tax amount is correct.

(6) tax refund claims for goods exported or imported without payment through a commercial bank or other credit institutions as prescribed by law.

(7) tax refund claims for goods exported or imported that require a inspection before refund as prescribed.

What are the 7 cases of inspection before refund in Vietnam? (Image from Internet)

What tax refund claims are subject to inspection before refund in Vietnam?

According to Clause 2, Article 22 of Decree 126/2020/ND-CP, in addition to the cases specified in Clause 1, Article 22 of Decree 126/2020/ND-CP, the dossiers subject to inspection before refund for exports and imports include:

(1) Taxpayers who, within 12 months up to the date of submitting a refund request, are determined by customs authorities to have committed customs violations and have been penalized more than twice (including acts of incorrect declaration leading to a shortfall in taxes payable or increase in exempted, reduced, refunded, uncollected taxes) with fines exceeding the authority of the Head of the Customs Department as per regulations on administrative violations.

(2) Taxpayers who, within 24 months up to the date of submitting a refund request, have been determined by customs authorities to have been penalized for smuggling or illegal transport of goods across borders.

(3) Taxpayers subject to enforcement of administrative decisions on tax administration.

(4) Goods subject to special consumption tax.

(5) Imported goods that must be re-exported to the originating country (or re-exported to a third country or into a non-tariff zone) not at the same border gate; exported goods that must be re-imported back to Vietnam not at the same border gate.

What is the time limit for resolving tax refund claims in Vietnam?

According to Article 75 of the Law on Tax Administration 2019, the resolution time limit for tax refund claims is as follows:

- For dossiers subject to pre-refund, no later than 6 working days from the tax administration authority's notification of dossier acceptance and resolution time limit, the authority must decide on the refund or notify the taxpayer if inspection before refund is needed or if the dossier is ineligible for a refund.

If the information declared on the refund dossier differs from the management authority's data, the tax authority will issue a written notification for the taxpayer to explain or supplement information. The time for explanation or supplements is not included in the refund dossier resolution time limit.

- For dossiers subject to inspection before refund, no later than 40 days from the tax administration authority's written acceptance notice, the authority must decide on the refund or deny the refund if the dossier is ineligible.

- If the refund decision is delayed beyond the regulation time limit due to the tax authority's fault, in addition to the refund amount, the authority must pay interest at 0.03% per day on the refundable amount for the number of delay days. Interest payments are sourced from the central budget as per state budget law.