One of the issues that need to be resolved immediately to remove difficulties for businesses and people, as requested by the Prime Minister at Official Dispatch 470/CD-TTg (Updated here by ATA), is to complete the review for applications for value-added tax refunds.
In order to create a basis for tax authorities to speed up the process of receiving and processing tax refund dossiers for taxpayers, on May 31, 2023, the Director General of the General Department of Taxation issued Decision No. (“Decision 679”) on the tax refund process replaces Decision No. 905/QD-TCT dated July 1, 2011 (“Decision 905”). Decision 679 sets forth the principles of work implementation and provides detailed instructions on the steps for a tax refund.
1. Specifying the cases of tax refund and instruct the legal basis to adjust each case
(i) Tax refund according to the provisions of tax law:
- VAT refund;
- Refund of excise tax on biofuel according to Article 29 of Circular 80;
- Tax refund under Double Taxation Agreements and other international treaties.
(ii) Payment and refund of advanced tax and value-added tax refund service fees to commercial banks;
(iii) Tax refund for cases of ownership transformation, enterprise transformation, merger, consolidation, division, separation, dissolution, bankruptcy, or termination of operation;
(iv) Personal income tax refund for individuals who directly finalize tax with tax authorities;
(v) Other overpayment.
2. Principles for processing tax refund dossiers
Processing tax refund dossiers are subject to tax refund first.
Processing tax refund dossiers subject to pre-tax refund inspection.
3. Supplementing the method of receiving tax refund applications electronically
In addition to submitting documents by post or in person, Decision 679 adds an electronic method through the website of the General Department of Taxation. Accordingly, tax refund dossiers must be electronically signed by taxpayers to be accepted.
Time for the system to respond on the receipt/rejection of tax refund dossiers: no more than 15 minutes from the time of receipt of dossiers.
The process of submitting, receiving, supplementing dossiers, and returning results is done electronically, which will be quick and convenient, thereby saving taxpayers time and effort.
4. All tax refund dossiers will be entered and processed on the TMS system
TMS: Centralized tax management application, is an information technology application system for tax management of the tax industry. Through this system, the records will be classified and resolved more quickly and efficiently. At the same time, it also helps to reduce the system of documents and documents "handover" between departments in the process of processing records.
5. Shortening the time limit for processing tax refund dossiers
According to the provisions of Decision 679, all work related to the examination and classification of dossiers to the notification of acceptance of tax refund dossiers will be carried out within 03 working days from the date of issuance notice of receipt of tax refund application dossiers.
Decision 679 takes effect from May 31, 2023.
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