What are cases of disgorgement of tax refund in Vietnam?
What are cases of disgorgement of tax refund in Vietnam? What is implementation of post-refund inspection for taxpayers in Vietnam? Please advise.
1. What are cases of disgorgement of tax refund in Vietnam?
Pursuant to Article 40 of Circular 80/2021/TT-BTC providing for disgorgement of tax refund as follows:
1. In case the tax authority or a competent authority, through inspection, discovers that tax is refunded against the regulations, the taxpayer shall return the excess refund and pay late payment interest thereon in accordance with Article 59 of the Law on Tax Administration and Article 21 of this Circular for the period from the day on which State Treasury refunds tax or offsets refundable tax against other state budget revenues under the refund disgorgement decision (Form No. 03/QD-THH in Appendix I hereof), decision or document of the competent authority.
2. If the taxpayer that discovers the unconformable refund themselves shall submit supplementary documents according to Article 47 of the Law on Tax Administration and Article 7 of Decree No. 126/2020/ND-CP; return the excess refund and pay late payment interest in accordance with Article 59 of the Law on Tax Administration and Article 21 of this Circular for the period from the day on which State Treasury refunds tax or offsets refundable tax against other state budget revenues.
3. In case the taxpayer has received the refund of VAT on exports but the exports are returned by the seller, the taxpayer shall submit supplementary documents according to Article 47 of the Law on Tax Administration and Article 7 of Decree No. 126/2020/ND-CP; return the VAT refund on the returned goods and pay late payment interest in accordance with Article 59 of the Law on Tax Administration and Article 21 of this Circular for the period from the day on which State Treasury refunds tax or offsets refundable tax against other state budget revenues.
4. The taxpayer may declare deduction of the unconformable refund if conditions for VAT deduction are fully satisfied according to VAT laws from the tax period succeeding the period in which the error is found in the cases specified in Clause 2 of this Article on declare it in the tax declaration dossier of the tax period in which the decision on refund disgorgement is received, or the decision/document of the competent authority mentioned in Clause 1 of this Article.
2. What is implementation of post-refund inspection for taxpayers in Vietnam?
Pursuant to Article 39 of Circular 80/2021/TT-BTC on post-refund inspection for taxpayers as follows:
1. Tax authorities shall carry out post-refund inspections in accordance with Section 1, Section 2, Section 3 Chapter XIII of the Law on Tax Administration and regulations of law on inspection.
2. When the result of post-refund inspection at the taxpayer's premises is available and if the refunded tax is found to be unconformable, the tax authority shall issue a decision on refund disgorgement according to Form No. 03/QD-THH in Appendix I hereof, impose penalties and late payment interest (if any) as per regulations.
Best Regards!
