On April 5, 2022, How is the General Department of Customs of Vietnam conducted remedial measures the tax refund and handle of the overpaid tax?

Main Content

• Classifying of tax refund application in Vietnam
• Process of refunding tax for goods imported for production and business that have been produced for export without exporting abroad or a non-tariff zone
• Refunding tax by procedures for handling overpaid tax for taxpayers who have already paid import and export tax
• How is remedial measures process of tax refund and handling overpaid tax required?

According to Official Dispatch 1163/TCHQ-TXNK dated April 5, 2022, the General Department of Customs of Vietnam showed a number of existence and proposed plans to rectify and inspect on tax refund and handle of overpaid tax, specifically as follows:

Classifying of tax refund application in Vietnam

- Issue

Classifying of tax refund application is not up to the provisions of Article 73 of the Law on Tax Administration No. 38/2019/QH14, Article 22 of Decree 126/2020/ND-CP dated 19 October 2020 of the Government, Clause 2, Article 12 of Circular 06/2021/TT-BTC dated January 22, 2021 of the Ministry of Finance of Vietnam.

For example: Tax refund application are subject to check after refunding, but it is classified into dossiers in contrast

- Remedial measures

For tax refund application that subject is under inspection before refunding, but it is classified to check after refunding, the inspection must be organized at the taxpayer's office for all of these cases according to the provisions of Clause 3, Article 12 of Circular 06/2021/TT-BTC.

The processing time of tax refund dossiers no in accordance with regulations:

- Issue

The processing time for tax refund application is not in accordance with the provisions of Article 75 of the Law on Tax Administration No. 38/2019/QH14.

For example, the processing time for dossiers subject to advance refund is more than 06 working days since the date the Custom's office gives notice of the acceptance of the dossier and the time limit for processing tax refund application,...

- Remedial measures

Receiving and settling tax refund deadlines in accordance with the Law on Tax Administration No. 38/2019/QH13, Decree 126/2020/ND-CP, Circular 06/2021/ TT-BTC.

the General Department of Customs of Vietnam conducted remedial measures the tax refund and handle of the overpaid tax

Process of refunding tax for goods imported for production and business that have been produced for export without exporting abroad or a non-tariff zone

- Issue

Tax refund for goods imported for production and business that have been put into production for export, but not exported abroad or not exported to a free trade zone as prescribed in Clause 1, Article 36 of Decree 134 /2016/ND-CP dated September 1, 2016 of the Government.

- Remedial measures

Inspecting and reviewing cases of tax refund on goods imported for production and business which have been put into production for export and exported products as prescribed in Article 36 Decree 134/2016/ND-CP. In case tax has been refunded for goods imported for production and business that have been put into production for export but have not been exported abroad or have not been exported into a free trade zone, the now recover the refunded tax amount according to regulations (Dispatch 6830/TCHQ-TXNK dated November 21, 2018, Official Letter 7565/TCHQ-TXNK dated December 25, 2018 of the General Department of Customs).

Refunding tax by procedures for handling overpaid tax for taxpayers who have already paid import and export tax

- Issue

Tax refund shall be carried out according to the procedures for handling overpaid tax for taxpayers who have paid import tax or export tax without imported or exported goods or imported or exported goods less than Import and export goods for which tax has been paid, according to the provisions of Point a, Clause 1, Article 19 of the Law on Import Tax and Export Tax No. 107/2016/QH13, Clause 1, Article 37 of Decree 134/2016/ND-CP dated 01 September 2016 of the Government.

- Remedial measures :

Carrying out tax refund procedures (do not carry out procedures for handling overpaid tax) in case the taxpayer has paid import or export tax without imported goods, or imported or exported goods are less than imported or exported goods for which tax has been paid in accordance with the provisions of Clause 1, Article 37 of Decree No. 134/2016/ND-CP. If the customs authority has refunded the taxpayer according to the procedures for handling the overpaid tax, it shall notify the taxpayer to submit the tax refund dossier as prescribed in Article 12 of Circular No. 06. 2021/TT-BTC, tax refund dossiers as prescribed in Clause 3, Article 37 of Decree No. 134/2016/ND-CP. The customs authority shall carry out procedures for receiving and processing tax refund dossiers according to the provisions of Article 12 of Circular No. 06/2021/TT-BTC.

How is remedial measures process of tax refund and handling overpaid tax required?

- Issue

Inspecting and checking dossiers eligible for tax refund in advance according to the principle of risk in tax administration has not been carried out and within 5 years from the date of issuance of the tax refund decision specified in Clause 1. Article 77 of the Law on Tax Administration No. 38/2019/QH14, Clause 4, Article 12 of Circular No. 06/2021/TT-BTC.

- Remedial measures :

Conducting inspection for dossiers subject to advance refund as prescribed in Clause 1, Article 77 of the Law on Tax Administration No. 38/2019/QH13, Clause 4, Article 12 of Circular No. 06/2021 /TT-BTC, Article 21 Process of tax exemption, reduction, tax refund, non-collection, handling of tax, late payment interest, and overpaid fines for exported and imported goods issued together with the Decision No. 3994/QD-TCHQ dated December 31, 2021 of the General Director of Customs.

- Coordinating with local tax authorities to collect and exchange information for inspection at taxpayers' offices.

- Strictly controlling tax refund in accordance with the Law on Import Tax and Export Tax No. 107/2016/QH13, Decree No. 134/2016/ND-CP, Decree No. 18/2021/ND-CP, Law on Management Tax No. 38/2019/QH14, Decree No. 126/2020/ND-CP, Circular No. 06/2021/TT-BTC. The Department's leaders direct the review and risk assessment of tax refund work in the whole unit, promptly detect errors to correct and handle officials, civil servants, leaders and related departments currently incorrect.