New regulations on VA refunds: increased supervision by the General Department of Taxation

The Ministry of Finance issued Circular 99/2016/ND-CP on 29 June to provide guidelines on the management of VAT refunds, including the process of handling VAT refund applications, obligations of tax payers and tax authorities in the process, measures to deal with high tax risk cases, etc (“Circular 99”).

• Taxpayers can submit VAT refund applications directly or by post to their local tax authorities. If the local tax authorities implement e-VAT refunds, taxpayers can submit the application via the electronic information gateway of the General Department of Taxation – in this case the GDT and local tax authorities will circulate information on the VAT refund status on the system, and the tax payer will be able to access this.

• The required documents for a VAT refund application follow Circular 156/2013/TT-BTC dated 6 November 2013.

• The deadline to issue a VAT refund decision is 6 working days for “refund first, audit later” cases and 40 days for “audit first, refund later” cases, from the submission of a complete VAT refund application.

• The local tax authorities shall work with relevant organizations (banks, customs departments, tax authorities managing suppliers of the taxpayer, police departments) to identify high tax risk cases.

Circular 99 also sets out the role of the General Department of Taxation (“GDT”) in funding VAT refunds and supervising VAT refunds made by local tax authorities. It is expected that the GDT will more closely supervise the VAT refund processes of local tax authorities going forward.

Circular 99 will become effective on 13 August, replacing Circular 94/2010/TT-BTC on VAT refunds for export goods, Decision 2404/QD-BTC on VAT audits for “refund first, audit later” VAT refunds, and Circular 150/2013/TT-BTC on management of VAT refund funds.

For more information, click PwC Vietnam Newsbrief – New regulations on VAT refund_EN and PwC Vietnam Newsbrief – New regulations on VAT refund_VN

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