Process of handling overpaid tax of the previous year

According to the General Department of Vietnam Customs, point g, Clause 1, Article 26, chapter 9 of Decision No. 3394/QD TCHQ dated December 31, 2021 of the Director General of Vietnam Customs on the inspection of documents prescribes: "In case of VAT refund is overpaid in the previous year but the tax refund decision is issued after March 31 of the following year, the customs authority needs to collect information from the local tax office to serve the tax refund. The customs authority shall send a request to the tax office of the locality where the enterprise is managed to provide information and data on declaration for tax payment and tax finalization report of the taxpayer to serve the tax refund.”

HCM City Customs officers carry out procedures for businesses. Photo: Thu Hòa

Compared with the current regulations, the customs authority needs to collect information from the local tax office to serve the tax refund in the case of refunding the overpaid VAT of the previous year but issuing a tax refund decision after March 31 of the following year for specific cases.

Accordingly, the cases are specified as follows: Within 12 months from the date of submission of the overpaid VAT refund dossier, the taxpayer commits violations of Law on customs, Law on Tax and other laws that are being prosecuted by competent authorities for criminal cases.

The taxpayer is a member company in the same corporation but this corporation is being prosecuted for a criminal case or another member of the same corporation is being prosecuted for a criminal case.

Taxpayers whose VAT amount requested for refund is VND500 million or more; the taxpayer fails to explain the inconsistencies in the dossier requesting a refund of overpaid VAT; other cases that the customs authority has suspected during the processing of handling taxpayer's overpaid VAT refund dossier.

Also according to the General Department of Vietnam Customs, the Customs authority must monitor and urge coordination with the Tax authority. Immediately after receiving the tax agency's opinion, based on the legal documents and request dossiers of the taxpayer, the customs authority shall send a document in response to the taxpayer.

For cases of refunds of overpaid VAT of the previous year but the customs authority has sufficient grounds to determine that the enterprise has not declared tax deduction or refund at the tax office, the customs authority does not need to collect more information from the local tax authority.