To: Directors of Tax Departments of provinces and centrally affiliated cities.

In recent times, the General Department of Taxation has initiated a program that has led to 99% of tax refunds being made electronically. Particularly, approximately 80% of value-added tax (VAT) refund claims eligible for refund before inspection are being promptly processed and addressed within six working days of receiving complete applications from taxpayers. Prompt tax refund settlements, in compliance with the Tax Administration Law, enable enterprises to improve capital turnover, enhance efficiency in capital utilization, and foster production, commerce, and export development. However, taxpayers are still experiencing delayed settlement of their VAT refund claims, leading to public displeasure.

To ensure strict compliance with VAT refund regulations and facilitate business operations, in Official Dispatch No. 470/CD-TTg dated May 26, 2023 on the continuation of drastical and effective implementation of tasks and solutions to resolve production and business issues for the public and enterprises, the Prime Minister directed “the Ministry of Finance to urgently inspect, evaluate, and urge the General Department of Taxation to promptly and effectively guide the application process for VAT refunds”.

Implementing the direction of the Prime Minister at Official Dispatch No. 470/CD-TTg above, on May 26, 2023, the Ministry of Finance issued Official Letter No. 5427/BTC-VP announcing the Minister's direction to the Director General of the General Department of Taxation to urgently implement the Dispatch and direct the Tax Departments of the provinces and centrally affiliated cities to “promptly process VAT refund applications to eligible applicants in accordance with the law. Once approved, we provide guidance and refund the VAT to eligible applicants without delay; strengthen inspection to detect the use of fake invoices and profiteering in tax refund to appropriate state budget, and take strict legal actions against those who violate the law”.

The General Department of Taxation has requested the Director of the Department of Taxation to perform the following tasks without delay:

1. The Director shall take full responsibility for the management of VAT refund in the area, direct the tax refund in accordance with the authority and in line with the law, avoid backlog of tax refund applications in process, which leads to public displeasure; allocate adequate resources, urge the affiliated units to expedite the inspection process of tax refund applications that have been received and categorized as inspection before refunding tax. The tax refund must be given to eligible applicants and eligible cases within the prescribed time limit as per the law on taxes and tax administration.

2. Once the eligible tax refund amount in a VAT refund application has been verified, the tax authority must promptly issue a decision on the refund to the enterprise within the prescribed time limit.

If the eligible tax refund amount in a VAT refund application has been in verification process, the taxpayer should receive regular updates on the status of their refund application and estimated processing time, communicated publicly and transparently. Once the eligible tax refund amount has been verified, the tax refund shall be given promptly as per Article 34 of Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance, before the tax refund application is fully verified.

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4. Regarding VAT refund applications against which associations and businesses file complaints: hold an immediate dialogue with associations and businesses during the period from May 29, 2023 to June 2, 2023 to clarify the issues raised, summarize the complaints, and report the results to the General Department of Taxation. The Tax Department will proactively seek to resolve any issues that fall within its competence. In case the complaints are beyond the competence of the Tax Department, they shall report them to the General Department of Taxation for guidance.

5. An application for VAT refund is only received if it includes all the required forms and is submitted in line with the procedures specified in Article 28 of Circular No. 80/2021/TT-BTC. If the application is not approved due to insufficient procedures, the taxpayer must be notified in writing with a clear explanation for the rejection as prescribed in Article 32 of Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance.

6. Urgently review VAT declaration applications of enterprises engaged in production and business activities of goods, and services for export, and project-based enterprises in the area, and guide them in submitting applications for tax refund in compliance with regulations.

Strengthen the propagation of policies on tax refund applications and procedures in Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance so that enterprises can be proactive in preparing tax refund applications and ensure that their applications meet all necessary procedures before submitting them to tax authorities, which enables tax authorities to receive applications easily.

7. Strengthen the post-refund inspection of tax refund decisions to promptly detect the use of illegal invoices or illegal use of invoices, profiteering in tax refund in order to appropriate state budget, and take strict legal actions against those who violate the law. As for the refunded tax amount pending the response and verification results from the relevant agencies, the tax authority must clearly state in the inspection report/conclusion that there are insufficient grounds for that tax amount to be refunded. If the verification results from the relevant agencies show that the refunded tax amount is not eligible for refund, then the tax authority shall issue a decision on revocation of the tax refund, and impose a fine and late payment interest (if any) as prescribed in Articles 77, Article 113 of the Law on Tax Administration and Article 39 of Circular No. 80/2021/TT-BTC of the Ministry of Finance.

8. The Tax Department's Director shall direct the Communication Division to guide and support taxpayers in understanding and implementing policies regarding tax extensions, exemptions, reductions of taxes, fees, charges, and land rents approved by competent authorities. This will aid individuals and businesses, and boost production and commerce in the area.

The General Department of Taxation hereby requests the Directors of the Tax Departments of the provinces and centrally affiliated cities to implement the directives mentioned above promptly and with due diligence./.

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Công văn 2099/TCT-KK năm 2023 triển khai chỉ đạo của Thủ tướng Chính phủ, Bộ Tài chính về hoàn thuế giá trị gia tăng do Tổng cục Thuế ban hành