DECISION

ON THE PROMULGATION OF REGULATIONS ON VAT INSPECTION AND ELIGIBILITY FOR TAX REFUND BEFORE INSPECTION

MINISTER OF FINANCE

Pursuant to the Law on Tax Administration No.78/2006/QH11 dated November 29, 2006, Decree No. 85/2007/ND-CP dated May 25, 2007 of the Government detailing the implementation of a number of articles of the Law on Tax Administration, Decree No. 106/2010/ND-CP dated October 28, 2010 of the Government amending and supplementing a number of articles of Decree No. 85/2007/ND-CP and guiding documents;

Pursuant to the Law on Value Added Tax No.13/2008/QH12 dated June 03, 2008 and documents regulating and guiding the implementation;

Pursuant to the Decree No. 118/2008/ND-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the General Director of the General Department of Taxation;

DECIDES

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Article 2. This Decision takes effect after 45 days after its signing date.

General Director of the General Department of Taxation, the General Director of the General Department of Customs; Director of Department of Taxation and Customs Departments of centrally-affiliated provinces and cities and the relevant units shall implement this Decision. /.

PP. MINISTER
DEPUTY MINISTER




Do Hoang Anh Tuan

REGULATIONS

VAT INSPECTION AND ELIGIBILITY FOR TAX REFUND BEFORE INSPECTION
(Issued together with Decision No. 2404 / QD-BTC dated September 27, 2012 of the Minister of Finance)

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GENERAL PROVISION

1. Specifying the responsibilities of tax administration agencies in the inspection process of value added tax (VAT) refunding in accordance with the provisions of the Law on Value Added Tax and the Law on Tax Administration.

2. This regulation is applied in the settlement of tax refunding at the tax administration agencies and the inspection after tax refunding at the tax payer's workplace in case the VAT refunding dossier of taxpayers eligible for tax refund before inspection.

Part II

TAX REFUNDING CHECK

I. SETTLEMENT OF TAX REFUNDING AT TAX AGENCY

1. Tax agencies of all levels shall carry out settlement of VAT refunding dossiers eligible for tax refund before inspection under the provisions of the Law on Tax Administration, the Law on Value Added Tax, the Government’s Decrees and relevant guiding Circulars of the Ministry of Finance and the tax refunding process of General Department of Taxation.

2. Tax agencies directly managing taxpayers are responsible for comparison reconciliation of tax arrears and fines (including tax arrears and fines under the management of the customs agencies) of the taxpayer at the time of tax refunding on application (using digital signatures) to track information of tax arrears and fines associated with the General Department of Customs and offset the amount of tax, fines in arrears (if any) with the amount of tax refunded when making decisions on tax refunding as prescribed.

The clearing of tax amount and fine in arrears under the management of the customs authorities are carried out as follows:

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+ The next stage when the General Department of Taxation and the General Department of Customs develop the web application that uses digital signatures and information on tax arrears updated faster, the tax agencies shall look up information on the website to ensure the time is shortened.

The offsetting of refundable tax amount with the tax arrears and fines under the management of the customs agencies above mentioned also applies to dossiers of VAT refunding subject to tax refund after inspection.

3. In the process of settlement of dossiers of tax refunding, if the tax agencies determine there is tax amount not eligible for refunding and missing information needing explanation or supplementation, the tax agencies must send a written request to the taxpayer immediately for explanation and supplement as prescribed as a basis for tax refunding. In case of expiry of the notice but the taxpayer does not give additional explanation as required or has given the explanation (the second time) but does not prove that the tax declaration is correct, then the tax agencies shall refund tax after inspection as prescribed. For the tax eligible for refunding, the tax agencies shall temporarily refund the tax amount eligible for refunding without waiting for checking and verification the entire dossier to carry out the tax refunding.

II. CHECKING AFTER TAX REFUNDING AT THE TAXPAYER’S WORKPLACE

1. The tax agencies of all levels shall carry out the checking after tax refunding at the taxpayer’s workplace for dossiers of tax refunding eligible for tax refund before inspection in accordance with regulations of the Law on Tax Administration and guiding documents (excluding the case of VAT refunding to the taxpayer not subject to diplomatic privileges and immunities).

The Department of Taxation shall direct the tax refunding check to each Division, branch of Taxation, the number of dossiers of tax refund before inspection have been checked after tax refunding with the scale, complexity, processing in accordance with regulations, etc. aggregated in the general tax examination and inspection criteria of all Departments of Taxation.

The check after tax refunding shall comply with the provisions of the Law on Tax Administration, the Law on VAT, the Decrees of the Government and guiding Circulars of the Ministry of Finance and tax examination process and tax refunding process of the General Department of taxation.

The checking record after tax refunding shall specify: written settlement of tax refunding; tax refunding period (from period to period); tax amount refunded. In case of refunding, the tax amount eligible and ineligible for refunding detected through checking after refunding shall be required for funding recovery (if any; number of invoices and documents related to funding recovery); identifying act of violation of the tax law, proposing the handling of violation and the amount to be paid by check (if any).

2. The Tax agency shall check after tax refunding within a time limit of not more than one year from the date the tax agency issues the decision on settlement of tax refunding and later check for the following cases:

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b) Business establishments are refunded tax from the operation of business of real estate, trading and services;

c) Business establishments change business locations within 12 months from the time of Decision on tax refunding and earlier.

d) Business establishments have unusual changes between taxable revenues and tax amount refunded for a period of 12 months.

For the other decisions on tax refund before inspection, the tax agencies shall check after tax refunding according to the principle of risk (dossier with scale and complexity and great tax amount refunded, etc. are prioritized for first implementation) for a maximum time limit of not more than ten years from the date the tax agencies issue decision on tax refunding.

3. In case through check after tax refunding, the tax agencies detect taxpayers have the acts of violation on law on tax, the sanction shall be applied in accordance with the provisions of Decree No. 98/2007/ND-CP dated June 07, 2007 of the Government stipulating the handling of violations on tax law and carrying out enforcement of tax administrative decisions and guiding documents of the Ministry of Finance.

4. Report on checking result after tax refunding

a) Annually and monthly, the Department of Taxation and branch of taxation shall make report on checking results after VAT refunding of the previous month to the superior tax agencies under the content, form and time limit prescribed in the tax refunding process of the General Department of Taxation.

b) The General Department of Taxation shall sum up the result of check after tax refunding of Departments of Tax for report to the Minister of Finance.

Part III

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1. The General Department of Taxation is responsible for directing and guiding the Departments of Taxation to comply with this Regulation; monitoring, examining and supervising the work of the tax refunding as prescribed by law and in accordance with this Regulation.

Directing the Department of Taxation to examine and monitor the implementation of tax refunding at the Department of Taxation, Branch of Taxation and in accordance with Regulation. Making preliminary and aggregating report on situation of tax refunding together with preliminary summing-up and general reviewing of unit’s work biannually and annually. The Department of Taxation shall send preliminary and general reviewing report on tax refunding above mentioned to the General Department of Taxation within 05 (five) days from the day of preliminary summing-up and general reviewing of the unit.

The General Department of Taxation and Department of Taxation shall inspect the ax refunding process over the inferior tax agencies in accordance with regulation and irregularly inspect over the inferior tax agencies upon generation of great tax amount refunded and abnormally and suddenly increasing.

The General Department of Taxation shall assume the prime responsibility and coordinate with the General Department of Customs to develop the tax management application to exchange information and receive data on tax arrears and fines under the scope of management of the customs authorities to serve the tax agencies in the collection of debts for the customs agencies upon settlement of tax refunding to the taxpayers.

2. The General Department of customs:

- Coordinate with the General Department of Taxation in developing the application and transferring information, electronic databases on the tax arrears and fines under the management of the customs agencies to the General Department of Taxation.

- Directing the Customs Departments and Customs Branches to coordinate and confirm the tax arrears and fines promptly at the request of the tax agencies.

- Assuming the prime responsibility and coordinating with the General Department of Taxation to develop the tax management application to exchange information and receive data on tax arrears and fines under the management of the tax agencies to serve the customs authorities in coordinating to collect arrears for the tax agencies upon settlement of tax refunding for the taxpayers;

- Directing the customs agencies of all levels to implement procedures for clearing of tax arrears and fine under the management of the tax agencies before the refunding of import and export duties made similarly to the provisions at Point 2, Section I, Part II of this Regulation.

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Any problem arising in the course of implementation should be promptly reported to the Ministry of Finance (General Department of Taxation) for guidance on settlement.

Quyết định 2404/QĐ-BTC năm 2012 về Chế độ kiểm tra hoàn thuế giá trị gia tăng thuộc diện hoàn thuế trước, kiểm tra sau do Bộ trưởng Bộ Tài chính ban hành