Strengthen the review of dossiers, cases of tax refund, handling of overpaid tax

Through the inspection of tax refunds, handling of overpaid tax amounts, and the process of monitoring the implementation of the preferential tariff program following Articles 7a and 7b of Decree 125/2017/ND-CP, Decree No. 57/2020/ND-CP and Decree 101/2021/ND-CP, the General Department of Vietnam Customs found that there were some shortcomings such as the tax refund dossiers were subject to refunds first and checks later, but were classified into inspection dossiers first, and refunded later; the processing time for dossiers subject to advance refunds exceeded six working days from the date the customs authority announced the acceptance of the dossier and the time limit for processing tax refund dossiers.

Specifically, in the classification of tax refund dossiers, some units did not comply with the provisions of Article 73 of the Law on Tax Administration No. 38/2019/QH14, Article 22 of Decree 126/2020/ND-CP of the Government and Clause 2, Article 12 of Circular 06/2021/TT-BTC of the Ministry of Finance; the processing time for tax refund dossiers was not guaranteed as prescribed in Article 75 of the Law on Tax Administration No. 38/2019/QH14.

At the same time, the implementation of tax refund for goods imported for production that was put into production for export but had not been exported to foreign countries or exported to a non-tariff zone as prescribed in Clause 1, Article 36 of Decree 134/2016/ND-CP; implement tax refund following procedures for handling overpaid tax for taxpayers who have paid import and export tax but they do not have import and export goods or the actual imported and exported goods are less than imported and exported goods for which tax has been paid.

Ha Nam Ninh Customs officers review documents and vouchers in the customs professional process. Photo: H.Nụ

According to the provisions in point a, clause 1, Article 19 of the Law on Import and Export Tax, and Clause 1, Article 37 of Decree 134/2016/ND-CP, there are still many shortcomings.

Besides that, many units have not yet conducted inspection and examination for dossiers eligible for tax refund in advance following the risk principle in tax administration and within five years of the date of issuance of the tax refund decision prescribed in Clause 1 of this Article, defined in Clause 1, Article 77 of the Law on Tax Administration No. 38/2019/QH14, and Clause 4, Article 12 of Circular 06/2021/TT-BTC.

Therefore, to implement tax refunds and overpaid taxes in accordance with regulations, the General Department of Vietnam Customs requested provincial and municipal customs departments to receive and settle tax refund deadlines in accordance with regulations prescribed in the Law on Tax Administration No. 38/2019/QH13, Decree 126/2020/ND-CP, and Circular 06/2021/TT-BTC.

In particular, for tax refund dossiers subject to inspection before refund but classified as subject to refund first and checks later, the units need to organize an on-site inspection at the taxpayer's headquarters for all cases following the provisions of Clause 3, Article 12 of Circular 06/2021/TT-BTC.

Inspecting and reviewing cases of tax refund on goods imported for production but which have been put into production for export and exported products following the provisions in Article 36 of Decree 134/2016/ND- CP. In case tax has been refunded for goods imported for production that have been put into production for export but have not been exported overseas or have not been exported into a non-tariff zone, it will recover the amount of tax that has already been refunded as prescribed.

Carrying out tax refund procedures (not carrying out procedures for handling overpaid tax) for cases in which taxpayers have paid import and export tax but have not imported or exported goods or imported and exported goods less than imported and exported goods that paid tax following the provisions of Clause 1, Article 37 of Decree 134/2016/ND-CP.

In case the customs office has refunded the taxpayer following the procedures for handling the overpaid tax, it shall notify the taxpayer to submit the tax refund dossier as prescribed in Article 12 of Circular 06/2021/TT-BTC; tax refund dossiers as prescribed in Clause 3, Article 37 of Decree 134/2016/ND-CP. Customs authorities shall carry out procedures for receiving and processing tax refund dossiers according to the provisions of Article 12 of Circular 06/2021/TT-BTC.

Inspecting dossiers subject to advance refunds as prescribed in Clause 1, Article 77 of the Law on Tax Administration No. 38/2019/QH13, Clause 4, Article 12 of Circular 06/2021/TT-BTC, Article 21 on the process of tax exemption, tax reduction, tax refund, non-collection, handling of tax, late payment interest, and fines for overpaid import and export goods issued together with Decision No. 3994/QD-TCHQ dated December 31, 2021 of the Director General of Vietnam Customs.

At the same time, the units need to coordinate with local tax authorities to collect and exchange information for conducting on-site inspections at taxpayers' offices. Strictly control tax refunds in accordance with the regulations.

The leader of the unit directs to review and assess the risk of tax refund in the whole unit, promptly detect errors to correct and handle customs officers, leaders and related divisions which are performed improperly.