What is processing applications for refund of over payments in case the application eligible for refund before inspection in Vietnam?

1. What is processing applications for refund of over payments in case the application eligible for refund before inspection in Vietnam?

Pursuant to Point b, Clause 1, Article 45 of Circular 80/2021/TT-BTC stipulating processing applications for refund of over payments in case tax refund application eligible for refund before inspection as follows:

b) For tax refund applications eligible for refund before inspection

On the basis of the taxpayer's refund application and information about the taxpayer's tax obligations and paid tax on the tax administration system, the tax authority shall determine the taxpayer's eligibility for refund and the refundable amount of tax, late payment interest and fines.

b.1) In case the taxpayer is eligible for tax refund, the tax authority shall compare the claimed amount specified in the refund application with the tax declaration dossier of the taxpayer and info about fulfillment of the taxpayer's tax obligations on the tax administration system in order to determine the refundable amount and the time of occurrence of the refundable amount in accordance with tax laws.

b.2) If information is not adequate for determination of the taxpayer's eligibility for 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 to the day on which the tax authority receives the taxpayer's explanation or supplementary documents shall not be included in the time limit for processing the tax refund application.

2. What is processing applications for refund of over payments in case tax refund applications subject to inspection before refund in Vietnam?

Pursuant to Point c, Clause 1, Article 45 of Circular 80/2021/TT-BTC, processing applications for refund of over payments in case tax refund applications subject to inspection before refund is as follows:

c) For tax refund applications subject to inspection before refund

If the tax authority, while inspecting the tax refund application, determines that the application is eligible for refund, the tax authority shall refund tax to the taxpayer without waiting for the result of verification of the entire tax refund application; in case verification is necessary or the taxpayer is required to provide explanation or supplementary documents, tax shall be refunded when all conditions are satisfied as per regulations.

In case the pre-refund inspection record shows that the taxpayer has both refundable tax and unpaid tax, late payment interest or fine, the tax authority shall issue a decision on penalties for tax offences and offset the refundable tax specified in the refund decision (Form No. 02/QD-HT in Appendix I hereof).

Best Regards!