VAT, PIT, and SCT refund process in Vietnam under Decision 679/QD-TCT

On May 31, 2023, the Director General of the General Department of Taxation issued Decision 679/QD-TCT on tax refund process.

1. VAT, PIT, and SCT refund process in Vietnam

The tax refund process issued with Decision 679/QD-TCT includes the following contents:

Receipt of tax refund applications

Receive tax refund applications according to the provisions of Article 32, Article 43 of Circular 80/2021/TT-BTC, and Decree 126/2020/ND-CP for the following cases, specifically:

- Tax refund according to tax laws:

+ Dossier requesting a value-added tax refund as prescribed in Article 28 of Circular 80/2021/TT-BTC (except point g, Clause 2, Article 28 of Circular 80/2021/TT-BTC).

+ Dossier requesting a refund of the special consumption tax on biofuel as prescribed in Article 29 of Circular 80/2021/TT-BTC.

+ Dossier requesting a tax refund according to the Double Taxation Avoidance Agreement and other international treaties specified in Article 30 of Circular 80/2021/TT-BTC.

- Payment and refund of advance tax and value-added tax refund service fees to commercial banks:

The request for refund is as prescribed in Point g of Clause 2 of Article 28 of Circular 80/202l/TT-BTC.

- Tax refund for cases of ownership conversion, business conversion, merger, consolidation, division, separation, dissolution, bankruptcy, and termination of operations:

+ Dossier requesting a refund of input value added tax that has not been fully deducted as prescribed in Article 31 of Circular 80/2021/TT-BTC.

+ Overpaid refund documents specified in Clause 3 of Article 42 of Circular 80/2021/TT-BTC.

- Personal income tax refund for individuals who directly settle taxes with tax authorities:

+ Tax refund documents for individuals with income from salaries and wages directly settle taxes with tax authorities according to the provisions of Point b, Clause 1, Article 42 of Circular 80/2021/TT-BTC.

- Refund of other overpayments:

+ Dossier for refund of overpayment of taxes and other revenues specified in Clause 2, Article 42 of Circular 80/2021/TT-BTC.

+ Personal income tax refund documents for income from salaries of organizations and individuals paying income from salaries and wages and performing tax finalization for authorized individuals prescribed in Point a, Clause 1, Article 42 of Circular 80/2021/TT-BTC.

Classification of tax refund documents

Classification of pig tax refund dossiers specified in Article 33 and Article 44 of Circular 80/2021/TT-BTC, specifically:

- Classify tax refund documents according to tax laws.

- Classify payment documents, refund advanced tax money, and refund value-added tax refund service fees to commercial banks.

- Classification of tax refund documents for cases of ownership conversion, business conversion, merger, consolidation, division, separation, dissolution, bankruptcy, and termination of operations.

- Classify personal income tax refund dossiers for individuals who directly settle taxes with tax authorities.

- Classify other overpaid refund documents.

Handling tax refund documents

Handle tax refund applications according to the provisions of Article 34 and Article 45 of Circular 80/2021/TT-BTC:

- Handle tax refund applications subject to advance tax refund.

- Handle tax refund dossiers subject to pre-refund inspection.

Evaluation of  tax refund documents

Appraisal of documents subject to appraisal according to the provisions of the Regulations on granting legal opinions on draft requests for developing legal documents and draft legal documents and appraise draft administrative documents issued by tax authorities at all levels together with Decision 1033/QD-TCT and replacement, amended, and supplemented documents (if any).

Tax refund decision

Tax refund decisions are as follows:

- Issue a Tax Refund Decision or a Tax Refund Decision cum State Budget Revenue Offset, Notice of non-refundable tax (as prescribed in Article 36, Article 46 of Circular 80/2021/TT-BTC).

- Issue a payment decision to the bank as a value-added tax refund agent according to the provisions of Article 36 of Circular 80/2021/TT-BTC and Article 21 of Circular 72/2014/TT-BTC.

Issuance of a refund order

Refund state budget revenue or Order to refund and offset state budget revenue according to regulations on the implementation of the state budget accounting regime and the professional operations of the State Treasury.

Tax refund recovery

Withdraw tax refund according to the provisions of Article 40 and Article 50 of Circular 80/2021/TT-BTC.

2. Determination of the tax amount eligible for a tax refund for tax refund dossiers subject to advance tax refund according to law in Vietnam

According to the provisions of Article 15 of Decision 679/QD-TCT, determining the tax amount eligible for a tax refund includes the following steps:

Step 1. Compare tax refund documents

Based on the taxpayer's tax refund dossier according to the provisions of the Law on Tax Administration and information about taxpayers managed by the Tax Authority in the database to determine subjects and cases eligible for refund,.

The comparison results are fully updated in the Tax Refund Proposal Form.

Step 2. Notice requesting taxpayers to explain and supplement information and documents.

Step 3. Accept information and additional documents from taxpayers or specialize in classifying tax refund dossiers to telegraph and check before tax refund.

Step 4. Determine the amount eligible for a tax refund

The tax refund application processing department will base its decision on the results of performing the above tasks to determine the tax amount requested for refund to meet tax refund conditions. The tax amount requested for refund is not eligible for tax refund and will be transferred to further deduction. The tax amount requested for refund is not eligible for tax refund and is not eligible for tax deduction; clearly state the reason based on applicable legal documents in notices and documents sent to taxpayers.

Key word: tax | tax refund | in Vietnam | Vietnam | value added tax |

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