Immediate tax refunds for tax refund applications meeting the requirements and regulations of the law in Vietnam

The tax authorities classify and assess risks. For tax refund applications that meet all conditions, the tax refund will be processed in accordance with the law.

With the objective of accompanying and supporting businesses and citizens, the General Department of Taxation always creates favorable conditions and shares with businesses in their business activities. However, this must conform to the law, and no one is allowed to violate legal regulations in Vietnam.

Therefore, to enhance tax management in general and VAT refunds in particular and to avoid loss of the state budget, the General Department of Taxation has directed local tax departments to strengthen control over VAT refunds. This is especially crucial for high-risk export goods. The departments are advised to focus on guiding tax authorities at all levels on risk identification criteria, delineate the scope for verification of intermediary businesses, and provide instructions for VAT refund verification and inspection.

On this basis, the tax authorities in Vietnam classify and assess risks. For tax refund applications that meet all the conditions for tax refund under the law, the refund will be processed immediately.

According to current tax policy regulations in Vietnam, unprocessed agricultural, forestry, and aquatic products sold directly by farmers are not subject to VAT. Businesses selling at intermediary commercial stages also do not need to declare or pay VAT, typically with VAT only applicable at the processing stage. Businesses are eligible for tax refunds on the portion of VAT paid at the processing stage if they meet the conditions for tax refunds.

However, recently, taking advantage of state policies to support businesses, false records and invoices have been detected during tax management processes. These were created or purchased unlawfully to avoid declaration and payment of taxes. Such cases will be investigated by tax authorities to ensure a healthy business environment.

Currently, tax authorities do not have investigative functions. Therefore, to ensure fair tax policy implementation among businesses participating in economic activities, the tax authority has increased coordination with investigative bodies to verify the authenticity of sales contracts. Verification not only serves tax management purposes and prevents budget losses but also ensures a fair competition environment for Vietnamese businesses.

Phuong Thuy

According to the General Department of Taxation's electronic information portal

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE