What is determination of refundable tax for tax refund applications eligible for refund before inspection in Vietnam?
What is determination of refundable tax for tax refund applications eligible for refund before inspection in Vietnam? What are principles for handling in case the refundable tax determined by the tax authority is different from the refund claimed by the taxpayer in Vietnam? Thankyou.
1. Determination of refundable tax for tax refund applications eligible for refund before inspection in Vietnam
Pursuant to Point b, Clause 1, Article 34 of Circular 80/2021/TT-BTC stipulating determination of refundable tax for tax refund applications eligible for refund before inspection as follows:
b) For tax refund applications eligible for refund before inspection
On the basis of the taxpayer's tax refund application and information about the taxpayer in the database, the tax authority shall inspect the tax refund application at the tax authority in order to determine eligibility for tax refund. To be specific:
b.1) In case the taxpayer is eligible for tax refund, the tax authority shall compare the claimed amount specified in the tax refund application with the tax declaration dossier of the taxpayer. The refundable amount shall be conformable with the Law on Tax Administration and its guiding documents.
b.2) If information is not adequate for determination of the taxpayer's eligibility for tax refund, the tax authority shall send the taxpayer a request for explanation and supplementary documents according to Form No. 01/TB-BSTT-NNT enclosed with Decree No. 126/2020/ND-CP within 03 working days from the day on which the tax authority receives the tax refund application. In case the taxpayer submits an electronic application, the request shall be sent via the information portal of General Department of Taxation.
Within 10 working days from the day on which the request is issued by the tax authority, the taxpayer shall provide explanation or supplementary documents to the tax authority.
If the taxpayer fails to provide explanation or supplementary documents by the deadline or the explanation and supplementary documents are not able to prove that the declared tax is correct, the tax authority shall send the taxpayer a notice that the tax refund application is subject to inspection before refund according to Form No. 05/TB-HT in Appendix I hereof within 06 working days from the day on which the tax refund application is received according to Article 32 of this Circular.
The period of time from the issuance date of the request for explanation or supplementary documents to the day the tax authority receives the taxpayer's explanation or supplementary documents shall be excluded from the tax refund application processing time of the tax authority.
2. In case the refundable tax determined by the tax authority is different from the refund claimed by the taxpayer in Vietnam
Pursuant to Point a, Clause 1, Article 34 of Circular 80/2021/TT-BTC, principles for handling in case the refundable tax determined by the tax authority is different from the refund claimed by the taxpayer are as follows:
a) In case the refundable tax determined by the tax authority is different from the refund claimed by the taxpayer:
a.1) In case the claimed refund is greater than the refundable tax, the taxpayer will receive the refundable amount.
a.2) In case the claimed refund is smaller than the refundable tax, the taxpayer will receive the claimed amount.
Best Regards!
