3 recommendations of seafood businesses were promptly answered by the Ministry of Finance

VCN - Recommendations of seafood enterprises on declaring, calculating and paying Value Added Tax (VAT) at the commercial business stage for scrap and discarded products; Invoicing for returned goods; VAT refund, has been specifically answered by the Ministry of Finance.
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The problems of seafood businesses were answered promptly. Photo: L.T
The problems of seafood businesses were answered promptly. Photo: L.T

Declare VAT on scrap and discarded products

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), on December 8, 2023, the association sent a report on problems and difficulties in mechanisms, policies, and administrative procedures of seafood enterprises to the Government Office and Administrative Procedure Reform Advisory Council. Among them, there are 3 recommendations mentioned above for the Ministry of Finance.

The above recommendations and problems have been specifically answered for businesses by functional units of the Ministry of Finance.

Firstly, regarding the content of VASEP, we recommend that the Ministry of Finance consider issuing guidance documents for local tax departments and businesses to store scraps, waste products, and seafood by-products (whether of preliminarily processed or processed) but not yet processed into other products or just processed normally, do not have to declare, calculate and pay VAT at the commercial business stage. The Ministry of Finance said:

In cases where scraps and waste products are determined to be aquatic products that have not been processed into other products or have only undergone normal preliminary processing in the forms specified in Clause 1, Article 4 of Circular No. 219/2013/TT-BTC of the Ministry of Finance, if because an enterprise or cooperative pays VAT according to the deduction method to an enterprise or cooperative at the commercial business stage, it is not required to declare, calculate and pay VAT according to regulations specified in Clause 5, Article 5 of Circular No. 219/2013/TT-BTC.

However, in the case of scrap and waste products of seafood products that are determined to be processed goods, VAT must be declared and paid at the tax rate of the scrap and waste products which are sold out.

Second, regarding the recommendation that the Ministry of Finance, there is a unified guiding document for relevant parties to allow that regardless of any procedure or form of return, the buyer and seller are still allowed to choose themselves an compatible invoice form suitable with the business activities of the enterprise on the condition that it still ensures unified tax declaration, reflecting the true nature of the transaction between the two parties.

The Ministry of Finance replied: in principle, Decree No. 123/2020/ND-CP stipulates that only the seller issues invoices. Accordingly, when returning the goods, the seller issues an adjustment invoice or replaces the established invoice, recording a decrease in output revenue, and the buyer records a corresponding decrease in input revenue.

The Ministry of Finance further informed that currently, the Ministry is developing a Decree amending and supplementing Decree No. 123/2020/ND-CP, which is expected to specifically regulate the above content.

Check and verify tax refund documents showing signs of high risk

Regarding the third content related to VASEP's proposal to recommend the content of VAT refund, the Ministry of Finance also specifically answered each content.

Specifically, the issuance of codes by the Tax authority on electronic invoices is based on the information of enterprises, economic organizations, other organizations, business households, and business individuals created on the invoice. The seller must take full responsibility before the law for the legality and accuracy of the electronic invoice issued when selling goods or providing services as well as the information on the invoice when sending the invoice to the Tax authority for providing code for invoice.

For businesses that have abandoned their business addresses, the list of businesses that have abandoned their business addresses is currently updated and published by the Tax Department on the Tax agency's website. Taxpayers can access the website to know the business that abandoned its business address.

Regarding VAT refunds, in order to promptly prevent fraudulent acts in tax refunds, the Tax authority coordinates with relevant agencies to check and verify tax refund documents showing signs of high risk, here is a necessary measure and one of the professional measures of the Tax authority. When the enterprise fully meets the tax refund conditions, it will receive a VAT refund according to the law.

Previously, the General Department of Taxation issued Decision No. 78/QD-TCT dated February 2, 2023 on applying risk management based on the application of information technology, building an early warning function and approving Comparing invoice data with declarations to identify businesses with many signs of suspected fraud in the management and use of invoices, subjecting them to immediate examination and inspection, preventing the issue of false invoices in time, prevent fraud in VAT refunds and prevent loss of revenue to the state budget.

The General Department of Taxation issued the Tax Refund Process attached to Decision No. 679/QD-TCT dated May 31, 2023, Decision No. 1388/QD-TCT dated September 18, 2023 on applying risks in classifying documents VAT refund. Accordingly, tax refund settlement is implemented consistently on the principle of risk management according to the provisions of tax law and tax administration law.

In the coming time, the Ministry of Finance will continue to research, amend, supplement and complete legal regulations on VAT, tax management and electronic invoices and related laws to limit, prevent the establishment of "ghost businesses" to issue and illegally use electronic invoices to cheat on tax refunds and profit from the state budget.

By Le Thu/ Phuong Linh

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