On June 15, the General Department of Taxation issued Official Dispatch No. 2426/TCT-KK requesting the Tax Departments of provinces and centrally-run cities to report the results of implementing the General Department of Taxation's direction on value-added tax (VAT) refund as required in Official Dispatch No. 2099/TCT-KK before 4:00 p.m. every Friday.
Implementing the direction of the Prime Minister in Official Dispatch No. 470/CD-TTg and the direction of the Minister of Finance in Official Dispatch No. 5427/BTC-VP on VAT refund, on June 15, 2023, the General Department of Taxation issued Official Dispatch No. 2426/TCT-KK requesting the Tax Departments of provinces and centrally run cities to report the results of implementing the direction of the General Department of Taxation on VAT refund in Official Dispatch No. 2099/TCT-KK dated May 26, 2023 before 4:00 p.m. every Friday, and send the report to the General Department of Taxation via the Tax Declaration and Accounting Department.
Accordingly, the General Department of Taxation requests the Tax Departments of provinces and centrally-run cities to report the following contents:
Firstly, report the results of the dialogue with local Associations and enterprises according to the content stated in Point 4 of Official Dispatch No. 2099/TCT-KK including: name of Association, enterprise that conducted the dialogue, implementation time, content of the dialogue, results of tax refund settlement of the taxpayer participating in the dialogue (refund request file, amount requested for refund, amount of tax refund resolved, amount of tax refund not yet resolved, expected time of tax refund for the enterprise) according to the form attached to this Official Dispatch.
Second, report on problems related to VAT refund policy and VAT refund management; make proposals and recommendations.
Third, for tax refund dossiers that have been received and are being processed for tax refunds subject to pre-refund inspection, with a time period of more than 40 days since the receipt of the dossier, the General Department of Taxation requests the Director of the Tax Department to assign the focal department (for example, the legal appraisal department or internal inspection department) to coordinate and work directly with the Inspection - Examination Departments and Tax Branches that are in charge of processing tax refund dossiers to clarify the existing content, thereby proposing solutions to speed up the processing of tax refunds for taxpayers.
At the same time, periodically within the time limit stated in this dispatch, report to the General Department of Taxation the settlement status of key tax refund dossiers according to the list attached to this dispatch by the General Department of Taxation, including:
Tax code, taxpayer name, tax refund period, requested refund amount, date of issuance of the Decision on inspection/audit at the taxpayer's headquarters, date of completion of inspection/audit at the taxpayer's headquarters, number of extensions/postponements/delays of inspection/audit at the taxpayer's headquarters or provision of document information (if any), progress of verification/comparison of invoices of origin of purchased goods (if any), related problems (if any) and clearly state the expected deadline for issuing the Tax Refund Decision.
Nearly 100% of tax refund records are electronically submitted.
Regarding tax refund work in the area, Mr. Nguyen Huu Hung, Deputy Director of Hanoi Tax Department, said that from January 1, 2023 to June 7, 2023, Hanoi Tax Department issued 555 decisions on value-added tax (VAT) refunds, with the refunded amount of VND 2,126 billion. The tax department is continuing to process 263 cases corresponding to the requested refund amount of VND 3,728 billion in VAT.
“Currently, in Hanoi, over 98% of VAT refund dossiers are processed electronically and on time by the Hanoi Tax Department. VAT refunds are processed in accordance with legal regulations and instructions from the Ministry of Finance and the General Department of Taxation,” Mr. Nguyen Huu Hung informed.
Regarding the situation of handling tax refund dossiers for wood and wood products in the area, on the Ho Chi Minh City side, the leader of the city's Tax Department said that from January 1, 2022 to May 17, 2023, the tax department has processed tax refunds for 61 dossiers, corresponding to the refunded amount of over 163 billion VND.
According to the leader of the Ho Chi Minh City Tax Department, in the process of handling tax refund dossiers, for dossiers that need to be verified, the tax authority mainly verifies the intermediary enterprises that sell goods directly to the tax refund enterprises (F1 enterprises). Specifically, in the 58 dossiers that the tax authority verifies the intermediary enterprises, 50 dossiers are verified to F1 intermediary enterprises, accounting for 86%, 8 dossiers are verified to F2 intermediary enterprises, accounting for 14%.
Also through verification, the Ho Chi Minh City Tax Department discovered that 48 intermediary enterprises abandoned their business addresses, temporarily suspended operations, and transferred their records to the police agency, specifically: 30 F1 enterprises temporarily suspended operations, 13 F1 enterprises abandoned their business addresses, 4 F2 enterprises temporarily suspended operations, and 1 F2 enterprise abandoned its business address.
Reflecting on the difficulties in tax refund, Mr. Nguyen Dang Loi, General Director of Dong Xuan Knitting Company, said that since November 2022, the company has submitted a tax refund dossier to the Hanoi Tax Department requesting a refund of over 12 billion VND in VAT. However, the company has not yet received a tax refund, because in the tax refund request dossier, there are a number of invoices for purchasing materials from enterprises that supplied goods to the company but did not declare and pay taxes, the company has stopped doing business or has fled, so the tax authority has put it in the high-risk category pending verification.
Mr. Nguyen Dang Loi proposed that for completed business documents, tax authorities and state management agencies should allow businesses to get tax refunds first, while those with signs of risk and need to wait for verification should be stopped. With tax refunds, businesses will have more capital to rotate and promote production and business.
Sharing about the difficulties and obstacles in VAT refund, Mr. Nguyen Huu Hung said that in the process of resolving VAT refund, the tax authority has recorded a number of difficulties and obstacles arising. In particular, some tax refund requests have high risks in terms of goods, forms, export partners; using invoices of enterprises that have stopped, closed, abandoned their business addresses or have transactions with non-existent foreign partners, do not admit to having import transactions..., need to verify and compare details to accurately determine the amount of tax eligible for refund according to regulations with a large scope, level, and coordination point of verification, leading to a long time for verification and resolution.
In order to properly handle VAT refunds in accordance with the law, contributing to removing difficulties for enterprises' production and business, the Hanoi Tax Department will continue to fully implement the 8 contents and tasks identified by the General Department of Taxation in Official Dispatch 2099/TCT-KK and focus on implementing a number of solutions to ensure quality and shorten the time to process tax refunds for enterprises.
Accordingly, the Hanoi Tax Department continues to thoroughly grasp and supervise tax officials to comply with legal regulations and tax refund procedures with a sense of responsibility, accompanying taxpayers at the highest level; continue to apply information technology in the tax refund inspection process to shorten processing time while still ensuring efficiency and accuracy in tax refund work.
At the same time, the Hanoi Tax Department will also closely and effectively coordinate with relevant units and agencies to shorten the verification time as a basis for determining and concluding in the most timely manner on the amount of tax eligible for refund settlement. Timely report to competent authorities on problems and difficulties in the process of implementing legal regulations, providing guidance on tax refund procedures...
“To facilitate tax refunds for businesses, the Hanoi Tax Department hopes to receive cooperation from businesses in the process of tax refunds, especially proactive compliance with legal regulations and guidance from tax authorities as well as proactively reviewing and ensuring the legality of tax refund requests. The Hanoi Tax Department will process tax refunds in accordance with regulations and to the right subjects, contributing to removing difficulties and promoting production and business,” Mr. Hung shared.
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