Latest instructions on return of tax refund result in Vietnam

Latest instructions on return of tax refund result in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Instructions on return of tax refund result in Vietnam

According to Article 38 of Circular 80/2021/TT-BTC, the return of tax refund result in Vietnam is guided as follows:

- The tax authority shall send the notice of ineligibility for tax refund, the tax refund decision or the decision on tax refund to the VAT refund agent to the taxpayer, relevant organizations and agencies via the website of General Department of Taxation within the issuance date of the decision or notice, or within the next working day at the latest.

- In case the Department of Taxation issues a tax refund decision or a decision on tax refund to the VAT refund agent to a taxpayer under the management of the sub-department of taxation, the Department of Taxation shall send the decision to the sub-department of taxation for monitoring.

- In case the taxpayer offsets the refundable amount against tax debt of another taxpayer or against tax payable at another tax authority according to Article 34 of Circular 80/2021/TT-BTC, the tax authority shall issue a tax refund decision and send it to the state budget revenue-managing tax authority and tax authority of the receiving province for recording.

2. Instructions on implementation of specialized measures during processing of tax refund applications in Vietnam

Instructions for implementation of specialized measures during processing of tax refund applications according to Article 35 of Circular 80/2021/TT-BTC are as follows:

- The customs authority shall be responsible for information about exports and imports on the customs declaration according to customs laws and tax administration laws.

In case the customs declaration is not available on the database provided by the customs authority, the processing authority shall send request relevant customs authorities in writing to provide database as the basis for processing the VAT refund application.

- On the basis of result of analysis, risk assessment, in order to serve management of VAT refunds, or tax offences or customs offences are suspected during inspection, the tax authority shall provide information about the taxpayer's offences for the customs authority to serve customs supervision and inspection as per regulations.

The General Department of Taxation shall, every quarter on the 20th of the succeeding month or whenever necessary, send the written request to General Department of Customs for application of channeling criteria to inspect and supervise exports and imports having high risk of incorrect tax refund.

The written request shall specify the criteria and method for inspection and supervision of exports and imports by enterprise, category, area, field according to the Law on Customs.

Within 05 working days from the receipt of the written request from General Department of Taxation, General Department of Customs shall apply channeling criteria to inspect and supervise exports and imports. In case the request is rejected or there are difficulties, General Department of Customs shall send a written response to General Department of Taxation within this time limit and provide explanation.

- In case through tax inspection, it is discovered that the taxpayer purchases goods and services from another taxpayer (supplier) that commits tax evasion, the tax authority shall include inspection of the supplier in the inspection plan, or request the supervisory tax authority of the supplier to carry out the inspection and provide information about the supplier compliance to tax laws as the basis for tax refund.

- In case the taxpayer has payment transactions that are relevant to an organization or individual that has suspicious transactions according to the warning list of the Banking Supervision and Inspection Agency; or the taxpayer's bank transfer confirmations are found to be inadequate or unconformable:

+ The processing authority shall send a written request to the credit institution or payment service provider for information (including account statements) of the payer (or transferor), the beneficiary or their related persons as the basis for VAT refund;

+ The processing authority shall send a written request to the border checkpoint customs authority for information about the cash (in foreign currencies or VND) that is brought into Vietnam through the border checkpoint within 05 working days from the receipt of the request as the basis for refund of VAT on goods exported through road checkpoint as per regulations.

- In case the tax authority, through inspection during the tax refund process, suspects that the taxpayer has committed violations of law and has transfer the case to the police for investigation, or the taxpayer's accounting books, invoices and documents relevant to the claimed refund have been confiscated by a competent authority, the tax authority shall send a notice of ineligibility for tax refund according to Form No. 04/TB-HT in Appendix I of Circular 80/2021/TT-BTC to the taxpayer.

The tax authority shall refund tax when upon availability of result or receipt of opinions from the police or competent authorities or when the application is adequate as per regulations.

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