What is the list of 16 official documents guiding inspection and verification related to the VAT refund process in Vietnam?

What is the list of 16 official documents guiding inspection and verification related to the VAT refund process in Vietnam?

On November 9, 2023, the General Department of Taxation issued Official Dispatch 5004/TCT-TTKT 2023 on the implementation of VAT refund inspections to ensure uniform and synchronous implementation in accordance with the law on management of VAT, strengthening discipline and discipline in performing public duties as well as handling work in accordance with the responsibilities and tasks of civil servants and tax authorities in the inspection and verification of VAT refunds.

In the Appendix issued with Official Dispatch 5004/TCT-TTKT in 2023, there is a list of 16 Official Dispatches providing guidance on inspection, verification and verification related to the VAT refund process, including:

What principles must be followed when inspecting and verifying VAT refunds?

In Section 1 of Official Dispatch 5004/TCT-TTKT in 2023, it is stipulated that VAT refund inspection and verification must ensure the following principles:

- The Director of the Tax Department of the province or centrally run city decides on tax refund in cases of tax refund according to the provisions of tax law. Take full responsibility for VAT refund work within the assigned state management scope 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.

- Fully apply risk management principles specified in the Law on Tax Administration 2019, implementation guidance documents, business 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 for implementation.

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

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

What is the list of 16 official documents guiding inspection and verification related to the VAT refund process in Vietnam? (Image from the Internet)

What does the VAT refund inspection and verification include in Vietnam?

According to Section 2 of Official Dispatch 5004/TCT-TTKT in 2023, VAT refund inspection and verification includes the following contents:

- Promote review and synthesis of system information, apply information technology to connect database information to assess risks on tax management, invoice management... promptly carry out inspections, and supervision of tax refund according to the provisions of law.

- For pre-tax refund inspection dossiers, the Department of Taxation organizes the assignment and implementation of inspection of tax refund dossiers immediately upon receipt of the dossiers. During the inspection process, if force majeure reasons arise and the inspection cannot continue, the inspection team leader shall report to the person who issued the inspection decision to temporarily stop the inspection.

- After the tax refund processing time has passed and there has been no response from the authorities, the Tax Department has issued a document urging and requesting the authorities to comment on the reason for not being able to provide information; Complete inspections and tests on time and process tax refund documents according to regulations in Circular 80/2021/TT-BTC.

- In case an enterprise under an approved inspection and verification plan at the taxpayer's headquarters has a tax refund request dossier subject to pre-refund inspection, the Tax Department will prioritize the inspection of the refund request dossier, arrange resources to implement the plan in accordance with regulations on tax inspection and verification, regulations on tax refund settlement in the Law on Tax Administration and guiding documents.

On what basis is verification work when inspecting and verifying VAT refunds in Vietnam?

Pursuant to Section 3 of Official Dispatch 5004/TCT-TTKT in 2023, when inspecting and verifying VAT refunds, verification is based on the following grounds:

- Verification work must be based on specific signs of tax risks according to the functions and tasks of the tax authority. The verification proposal must have specific analysis and assessment based on signs of tax law violations and invoices collected by tax authorities or received from third parties. The proposed scope of verification should be based on legal regulations on taxes, tax administration and other legal regulations related to transactions of buying and selling goods and services to properly assess the taxpayer's responsibility in managing and using invoices as well as declaring and determining relevant tax obligations.

- Inspection and verification must be carried out in accordance with regulations to ensure processing time for documents subject to pre-tax refund inspection. In case the verification and inspection show signs of violations by subjects buying and selling goods at previous stages, the Tax Department will handle the violating taxpayers in accordance with the law.

- It is necessary to focus on using the electronic invoice system to shorten time and quickly identify the correct objects that need verification.

Best regards!