What are the places for inspection of tax refund claims subject to inspection before refund in Vietnam?

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

Under Clause 2, Article 73 of the Law on Tax Administration 2019, the tax refund claims subject to inspection before refund in Vietnam include:

- Tax refund claims submitted for the first time in the cases specified by tax laws. If a taxpayer’s first tax refund claim is rejected, the next claim will be considered the first.

- Any claim submitted within 02 years from the day on which the penalties on the taxpayer’s tax evasion is imposed;

- Claims submitted by organizations that are dissolved, bankrupt, shut down, sold or transferred to state-owned enterprises;

- High-risk claims as classified by the risk management system;

- Any tax refund claim eligible for refund before inspection but the taxpayer fails to provide explanation or documents proving the declared tax, or the explanation or documents provided by the taxpayer is not convincing enough;

- Claims for refund of taxes on exports or imports that are not paid for via a commercial bank or credit institution as prescribed by law;

- Claims for refund of tax on exports or imports subject to inspection before refund prescribed by the Government.

What are the places for inspection of tax refund claims subject to inspection before refund in Vietnam? (Image from the Internet)

What are the places for inspection of tax refund claims subject to inspection before refund in Vietnam?

Under Clause 2, Article 74 of the Law on Tax Administration 2019:

Inspection place

1. Claims eligible for refund before inspection shall be inspected at tax authorities.

2. Claims subject to inspection before refund shall be inspected at the premises of the taxpayers or relevant entities.

Therefore, tax refund claims subject to inspection before refund shall be inspected at the premises of the taxpayers or relevant entities.

What is the time limit for processing the tax refund claims subject to inspection before refund in Vietnam?

The time limit for processing the tax refund claims is stipulated in Article 75 of the Law on Tax Administration 2019 as follows:

Time limits for processing tax refund claims

1. In case a claim is eligible for refund before inspection, within 06 working days from the day on which the tax authority issues the notice of receipt of the claim, the tax authority shall decide whether to provide the refund, demand inspection before refund in the cases mentioned in Clause 2 Article 73 of this Law, or reject the claim if it is unqualified.

In case information on the tax refund claim is different from that of the tax authority, the tax authority shall request the taxpayer in writing to provide explanation and additional information. The time needed for providing explanation and additional information shall not be included in the time limit for processing tax refund claims.

2. In case a claim is subject to inspection before refund, within 40 working days from the day on which the tax authority issues the notice of receipt of the claim, the tax authority shall decide whether to provide the refund or reject the claim.

3. If the tax authority fails to issue the tax refund decision by the deadline specified in Clause 1 and Clause 2 of this Article, the tax authority shall pay an interest at 0,03% per day on the refundable and the number of days late. The interest shall be paid by central government budget in accordance with regulations of law on state budget.

In case a claim is subject to inspection before refund, within 40 working days from the day on which the tax authority issues the notice of receipt of the claim, the tax authority shall decide whether to provide the refund or reject the claim.

Note: If the tax authority fails to issue the tax refund decision by the deadline as specified, the tax authority shall pay an interest at 0,03% per day on the refundable and the number of days late. The interest shall be paid by central government budget in accordance with regulations of law on state budget.

Additionally, based on Article 76 of the Law on Tax Administration 2019, the power to decide tax refund is as follows:

- The Director of the General Department of Taxation, Directors of Provincial Departments of Taxation shall decide tax refund in eligible cases as prescribed by tax laws.

- The heads of tax authorities receiving claims for refund of overpaid tax shall decide refund of overpaid tax in accordance with this Law.

- The Director of the General Department of Customs, Directors of Customs Departments and Sub-departments of Customs to which tax is overpaid shall decide tax refund in accordance with tax laws.