Newest procedures for VAT tax refund of the investment projects in Vietnam

Newest procedures for VAT tax refund of the investment projects in Vietnam​ (Image from the internet)

On September 9, 2024, the Ministry of Finance of Vietnam issued Decision 2111/QD-BTC on the announcement of amended administrative procedures in the field of Tax under the management of the Ministry of Finance of Vietnam.

Newest procedures for VAT tax refund of the investment projects in Vietnam

- Implementation Sequence:

+ Step 1. The taxpayer eligible for a VAT tax for the investment project prepares the refund request Application and submits it to the tax authority in Vietnam.

In case the taxpayer submits the Application electronically: The taxpayer accesses the electronic portal chosen by them (the electronic portal of the General Department of Taxation/the electronic portal of the competent state authority including: the national public service portal, the ministry-level public service portal, the provincial public service portal compliant with the regulations on implementing the one-stop-shop and inter-agency one-stop-shop mechanisms for administrative procedures, and connected with the General Department of Taxation's electronic portal (hereinafter referred to as the competent state agency's electronic portal)/the electronic portal of service provider T-VAN) to file the tax refund declaration and accompanying electronic appendices (if any), electronically sign the documents, and send them to the tax authority through the chosen electronic portal.

+ Step 2. Tax authority acceptance process:

++ In case the Application is submitted directly at the tax authority:

+++ Application reception: tax officials check the completeness of the Application as per regulations.

++++ Incomplete Application: tax officials request the taxpayer to complete the Application as per regulations.

++++ Complete Application: tax officials send a Receipt Notice regarding the acceptance of the Application using form 01/TB-HT issued with Appendix I of Circular 80/2021/TT-BTC to the taxpayer and record the reception in the tax management application system.

+++ Application review and processing:

++++ Accepted/Not accepted Application: The tax authority sends an Acceptance/Non-acceptance Notice regarding the refund request using form 02/TB-HT issued with Appendix I of Circular 80/2021/TT-BTC within 03 (three) working days from the date of receiving the refund request Application.

++++ Application not eligible for refund: The tax authority sends a Notice of Non-eligibility for the refund using form 04/TB-HT issued with Appendix I of Circular 80/2021/TT-BTC within 03 (three) working days from the date of receiving the refund request Application.

++++ Accepted Application for processing: The tax authority processes the taxpayer's refund request Application and returns the results as per the Law on Tax Administration and the guiding documents.

++ In case the Application is sent via postal mail:

+++ Application reception: tax officials stamp the reception, record the date of receiving the Application, and file it in the tax management application system.

+++ Application review and processing:

++++ Accepted/Not accepted Application: The tax authority sends an Acceptance/Non-acceptance Notice regarding the refund request using form 02/TB-HT issued with Appendix I of Circular 80/2021/TT-BTC within 03 (three) working days from the date of receiving the refund request Application.

++++ Incorrect procedure Application: The tax authority sends a Notice of Incorrect Procedures using form 03/TB-HT issued with Appendix I of Circular 80/2021/TT-BTC within 03 (three) working days from the date of receiving the refund request Application.

++++ Application not eligible for refund: The tax authority sends a Notice of Non-eligibility for the refund using form 04/TB-HT issued with Appendix I of Circular 80/2021/TT-BTC within 03 (three) working days from the date of receiving the refund request Application.

++++ Accepted Application for processing: The tax authority processes the taxpayer's refund request Application and returns the results as per the Law on Tax Administration and the guiding documents.

++ In case the Application is submitted through electronic transactions, the reception, review, and acceptance of the tax refund Application by the tax authority will be conducted through the electronic data processing system:

+++ Application reception: The General Department of Taxation's electronic portal sends a Receipt Notice to the taxpayer confirming the submission of the tax refund Application using form 01/TB-HT issued with Appendix I of Circular 80/2021/TT-BTC within 15 minutes of receiving the refund request Application from the taxpayer.

+++ Application review and processing:

++++ Accepted/Not accepted Application: The tax authority sends an Acceptance/Non-acceptance Notice using form 02/TB-HT issued with Appendix I of Circular 80/2021/TT-BTC within 03 (three) working days from the date of the electronic reception notice.

++++ Application not eligible for refund: The tax authority sends a Notice of Non-eligibility for the refund using form 04/TB-HT issued with Appendix I of Circular 80/2021/TT-BTC within 03 (three) working days from the date of receiving the electronic refund request Application.

++++ Accepted Application for processing: The tax authority processes the taxpayer's refund request Application and returns the results as per the Law on Tax Administration and the guiding documents.

+ Step 3. The tax authority processes the accepted refund request Applications:

++ For the pre-refund audit Applications: The tax authority examines the taxpayer's Application at the tax office to determine the eligibility for the refund.

+++ Application eligible for a refund: The tax authority processes the refund and issues a Refund Decision using form 01/QDHT issued with Appendix I of Circular 80/2021/TT-BTC if the taxpayer has no outstanding tax debt; or a Refund Decision that offsets state budget revenue using form 02/QDHT along with the Appendix of the refundable tax amount, late payment interest, and fines to be offset using form 01/PL-BT (if any) issued with Appendix I of Circular 80/2021/TT-BTC if the taxpayer has outstanding tax debt or requests to offset the refundable tax amount with other debts or obligations; or a Notice of Non-eligibility for refund using form 04/TB-HT (if any) issued with Appendix I of Circular 80/2021/TT-BTC.

+++ Insufficient information to determine refund eligibility: The tax authority issues a Request for Explanation and Additional Information using form 01/TB-BSTT-NNT issued with Decree 126/2020/ND-CP to the taxpayer within 03 (three) working days from the date the tax authority receives the refund request Application; if the taxpayer submits the refund electronically, the Notice is sent via the General Department of Taxation's electronic portal.

Within 10 (ten) working days from the date the tax authority issues the Notice, the taxpayer is responsible for submitting an explanation or additional information as per the tax authority's request.

++++ If the taxpayer provides a valid explanation or additional documents proving the declared tax is correct: The tax authority processes the refund and issues a Refund Decision using form 01/QDHT issued with Appendix I of Circular 80/2021/TT-BTC if the taxpayer has no outstanding tax debt; or a Refund Decision that offsets state budget revenue using form 02/QDHT along with the Appendix of the refundable tax amount, late payment interest, and fines to be offset using form 01/PL-BT (if any) issued with Appendix I of Circular 80/2021/TT-BTC if the taxpayer has outstanding tax debt or requests to offset the refundable tax amount with other debts or obligations; or a Notice of Non-eligibility for refund using form 04/TB-HT (if any) issued with Appendix I of Circular 80/2021/TT-BTC.

++++ If the taxpayer fails to explain or supplement the Application by the deadline stated in the tax authority's Notice; or provides an explanation or supplement but fails to prove the declared tax is correct: The tax authority transfers the refund Application to the audit before refund processing and sends a Notice of Application Transfer to Audit Before Refund using form 05/TB-HT issued with Appendix I of Circular 80/2021/TT-BTC to the taxpayer within 06 (six) working days from the date of Application acceptance.

++ For the audit before refund Applications: The tax authority examines the taxpayer's Application at the taxpayer's premises or at the premises of relevant agencies, organizations, or individuals.

Based on the audit results, the tax authority processes the refund and issues a Refund Decision using form 01/QDHT issued with Appendix I of Circular 80/2021/TT-BTC if the taxpayer has no outstanding tax debt; or a Refund Decision that offsets state budget revenue using form 02/QDHT along with the Appendix of the refundable tax amount, late payment interest, and fines to be offset using form 01/PL-BT (if any) issued with Appendix I of Circular 80/2021/TT-BTC if the taxpayer has outstanding tax debt or requests to offset the refundable tax amount with other debts or obligations; or a Notice of Non-eligibility for refund using form 04/TB-HT (if any) issued with Appendix I of Circular 80/2021/TT-BTC.

- Mode of implementation:

+ Direct submission at the tax authority;

+ Or via postal mail;

+ Or electronically through the General Department of Taxation's electronic portal; or the competent state authority's electronic portal; or through the T-VAN service provider.

- Components and number of Applications:

+ Components of the Application, include:

++ Request form for repayment of state budget revenues using form 01/HT issued with Appendix I of Circular 80/2021/TT-BTC;

++ A copy of the Investment Registration Certificate or investment certificate or investment license for cases requiring registration for an Investment Registration Certificate;

++ For projects with construction works: A copy of the Land Use Right Certificate or land allocation decision or land lease contract from the competent authority; construction permit;

++ A copy of the capital contribution certificate;

++ For investment projects of business establishments in conditional investment and business sectors during the investment phase, as per investment and sector-specific regulations already granted by the competent state authorities with business licenses in conditional investment and business sectors following Clause 3, Article 1 of Decree 49/2022/ND-CP: A copy of one of the following forms of permit or certificate or confirmation document, approval for business in conditional investment and business sectors;

++ Decision to establish the Project Management Board, Decision on project management assignment by the investment project owner, Organizational and operational regulations of the branch or Project Management Board (if the branch or Project Management Board is processing the refund).

For taxpayers who have not sent electronic invoices to the tax authorities, they must additionally submit: Invoice and document list of purchased goods and services using form 01-1/HT issued with Appendix I of Circular 80/2021/TT-BTC.

+ Number of Applications: 01 (set).

- Processing time limit:

The tax authority processes and returns the results within the stipulated time:

+ For pre-refund audit Applications, no later than 06 working days from the date the tax authority issues a written acceptance notice;

+ For audit before refund Applications, no later than 40 days from the date the tax authority issues a written acceptance notice.

More details can be found in Decision 2111/QD-BTC which comes into force in Vietnam from September 9, 2024.

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