List of 16 Official Dispatches guiding the inspection, examination, and verification of the VAT refund process in Vietnam

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1. List of 16 Official Dispatches guiding the inspection, examination, and verification of the VAT refund process in Vietnam

Previously, on the basis of synthesizing reports and information from Departments of Taxation and relevant authorities, the General Department of Taxation issued official documents providing guidance on inspection, examination, and verification of contents related to the VAT refund process at different times according to certain contexts.

The issuance of the above official dispatches is necessary in the context of guiding documents on the Law on Tax Administration dated 2019; risk management procedures have not yet been issued, and tax authorities have received many warnings about fraud and violations of the law on value-added tax refunds to profit from the state budget. Thereby, it has contributed to warning and promptly informing tax authorities at all levels about signs of risk in tax management in general and VAT refund inspection and examination in particular.

Up to now, the system of legal documents on tax administration has been fully promulgated, along with professional processes and sets of criteria and risk assessment indicators in tax management as well as supporting applications have been and are being urgently developed according to assigned authority including Decision No. 679/QD-TCT dated May 31, 2023 of the General Department of Taxation on promulgating the Tax Refund Process, Decision No. 970/QD-TCT dated July 14, 2023 of the General Department of Taxation on promulgating the tax inspection process, Decision No. 1388/QD-TCT dated September 18, 2023 of the General Department of Taxation on the application of risk management in classifying VAT refund dossiers and selecting taxpayers to develop post-refund inspection and audit plans. Thereby, it basically meets the requirements of modern tax management in accordance with the risk management principles of the Law on Tax Administration.

In the appendix issued with Official Dispatch 5004/TCT-TTKT 2023 on the list of Official Dispatches guiding the inspection, examination, and verification of the VAT refund process, specifically:

2. Principles for conducting inspections and checking VAT refunds in Vietnam

In order to ensure uniform and synchronous implementation in accordance with legal regulations on tax administration, strengthen discipline in performing public duties as well as solve problems in accordance with the responsibilities and duties of civil servants and tax authorities in the inspection and examination of VAT refunds according to the following principles:

- The Director of the Tax Department of the province or centrally run city decides on tax refunds in cases of tax refund according to the provisions of tax law; take full responsibility for VAT refund work within the scope of assigned state management in accordance with the provisions of the Law on Tax Administration 2019 and guiding documents.

Thoroughly grasp all officials and civil servants about the industry's discipline, powers, obligations, and responsibilities of officials and civil servants assigned to inspect and examine VAT refunds.

Based on the specific characteristics of tax management in each area, Drectors of Tax Departments have measures to strengthen the management and supervision of officials and civil servants assigned tasks related to the progress of processing VAT refund documents.

- Fully apply the risk management principles stipulated in the Law on Tax Administration, guiding documents, professional processes, and relevant sets of criteria and risk indicators.

The assessment and analysis of tax and invoice risks must be based on each specific file and the reality of tax management in the area of implementation.

- Post-tax refund inspection and examination must be carried out drastically to strictly control VAT refunds and ensure compliance with policies and legal regulations.

The Tax Department assigns duties and tasks for post-tax refund inspections specifically and clearly to each department.

Require each officer and civil servant to firmly grasp the assigned area and field. In the event of detecting abnormalities while performing official duties, it is necessary to urgently report them to the competent authority for consideration and decision.

Best regards!

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