Thông tư 99/2016/TT-BTC

CIRCULAR

ON MANAGEMENT OF VALUE ADDED TAX REFUND

Pursuant to the Law on Tax administration No. 78/2006/QH11 dated November 29, 2006; the Law No. 21/2012/QH13 on amendments to the Law on Tax administration dated November 20, 2012; Law on amendments to Tax Laws No. 71/2014/QH13 dated November 26, 2014 and guiding documents;

Pursuant to the Law on Value-added tax No. 13/2008/QH12 dated June 3, 2008; Law on amendments to the Law on Value-added tax No. 31/2013/QH13 dated June 19, 2013; Law on amendments to the Law on Value-added tax, the Law on special excise tax and the Law on Tax administration No. 106/2016/QH13 dated April 6, 2016 and guiding documents;

Pursuant to the Law on State budget No. 83/2015/QH13 dated June 25, 2015 and guiding documents;

Pursuant to the Government’s Decree No.215/2013/ND-CP dated December 23, 2013 defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the request of the Director General of the General Department of Taxation.

The Minister of Finance promulgates a Circular providing guidelines for management of value added tax refund.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

1. This Circular provides guidelines for management of value-added tax (VAT) refund to taxpayers under management of tax authorities in accordance with regulations of the Law on State budget, the Law on Value-added tax, the Law on Tax administration and guiding documents; including: receipt, process, and inspection of VAT refund; management of estimated budget for VAT refund; responsibilities of relevant agencies, organizations, and individuals in management of VAT refund.

2. Refund of VAT on goods bought by the foreigners and overseas Vietnamese and taken along with when leaving Vietnam in accordance with Circular No. 72/2014/TT-BTC dated May 30, 2014 of the Ministry of Finance.

3. Refund of overpaid VAT in accordance with Article 47 of the Law on Tax administration No. 78/2006/QH11 which is amended in Clause 13 Article 1 of the Law on Tax administration No. 21/2012/QH13 on amendments to the Law on Tax administration and guiding documents.

Article 2. Regulated entities

1. Taxpayer eligible for VAT refund in accordance with the Law on value-added tax.

2. Tax authorities include:

a) General Department of Taxation, Departments of Taxation, Sub-departments of Taxation;

b) General Department of Customs, Customs Departments, Sub-departments of Customs.

3. Department of Government Budget affiliated to the Ministry of Finance.

4. Vietnam State Treasury, State Treasuries of provinces and central-affiliated cities (hereinafter referred to as provinces), State Treasuries of districts and provincial-affiliated cities (hereinafter referred to as districts).

5. Other regulatory agencies, organizations and individuals in connection with management of VAT refund.

Article 3. Rules for VAT refund management

1. Each taxpayer eligible for VAT refund as prescribed in the Law on Value-added tax shall determine the refundable VAT, and then make a claim for VAT refund (hereinafter referred to as claim) and send it to the supervisory tax authority.

2. Claims for VAT refund shall be processed in accordance with regulations of law, Article 59 of the Law on Tax administration No. 78/2006/QH11 dated November 29, 2006 (hereinafter referred to as the Law on Tax administration No. 78/2006/QH11) and Clause 8 Article 1 of the Law on Tax administration No. 21/2012/QH13 dated November 20, 2012 on amendments to the Law on Tax administration (hereinafter referred to as the Law on Tax administration No. 21/2012/QH13) and their guiding documents.

3. Rules for risk management in processing VAT refund claims shall be specified in Clause 1 of the Law on Tax administration No. 21/2012/QH13; Clause 2 Article 1 of Law on amendments to the Law on Value-added tax, the Law on special excise duty and the Law on Tax administration No. 106/2016/QH13 dated April 6, 2016 (hereinafter referred to as Law No. 106/2016/QH13) and guiding documents shall be applied.

4. Tax authorities shall apply information technology in accordance with law on electronic transactions in receipt, process, and management of VAT refund, and connection and communication between relevant agencies in process of VAT refund to taxpayers.

Article 4. Budget for VAT refund

1. Budget for VAT refund shall be included in the annual budget estimates approved by the National Assembly.

2. Director General of the General Department of Taxation shall manage the budget for VAT refund and administer VAT refund expenditures within the budget estimates approved by competent authorities.

3. Directors of Departments of Taxation shall manage and use the budget for VAT refund to provide for taxpayers within their competence and take responsibility for their decisions on tax refunds as prescribed by law.

Article 5. Database and application of information technology in management of VAT refund

1. The database of VAT refund is a system of data about taxpayers eligible for VAT refund, which is a part of the database system of overall tax management of tax agencies. The creation, collection, process, usage, share, storage, and security of database of VAT refund shall comply with regulations of law in force.

2. Tax authorities shall apply information technology in management of VAT refund, including: receipt, process of tax refund documents, notifications of results of tax refund documents, and communication between relevant agencies in VAT refund.

Article 6. Application of risk management in management of VAT refund

1. The risk assessment of management of VAT refund shall comply with Clause 1 Article 1 of the Law on Tax administration No. 21/2012/QH13; Circular No. 204/2015/TT-BTC dated December 21, 2015 of the Ministry of Finance on application of risk management in tax administration (hereinafter referred to as Circular No. 204/2015/TT-BTC)

2. Risk management in management of VAT refund

a) Classification of claims, including: Claims eligible for tax refund before inspection and claims subject to inspection before tax refund as prescribed in Clause 1 Article 1 of the Law on Tax administration No. 21/2012/QH13, Clause 3 Article 1 of Law No. 106/2016/QH13; the tax authorities shall classify high-risk claims as pre-inspection claims.

b) Formulation of inspection plans after VAT refund in accordance with Clause 18 Article 1 of the Law on Tax administration No. 21/2012/QH13, Clause 4 Article 41 of the Decree No. 83/2013/ND-CP: the inspection after refund shall be carried out in conformity with the Rules for risk management within 10 years, from the date on which the decision on tax refund is made.

Article 7. Application of customs-based measures for cases of tax refund-related high risks

1. Customs authorities shall provide customs declarations and relevant information for tax authorities via the website of General Department of Customs in accordance with Regulation on communication and cooperation between customs authorities and tax authorities. Customs authorities shall take responsibility for information about exported and imported goods specified in customs declarations in accordance with law on customs and tax administration.

If a customs declaration does not exist in the database of a customs authority, the tax authority shall request the customs authority in writing to provide such declaration as a basis for processing VAT refund to the taxpayer.

2. When a tax authority, according to results of analysis, risk assessment, requirements for management of VAT refund or inspection, has reasonable doubts about any violations against the laws on taxation, it shall provide the violation’s information committed by the taxpayer for the customs authority so as to carry out necessary customs inspection as prescribed.

Quarterly, General Department of Taxation shall, on the 20^th of the month succeeding the quarter or in exceptional circumstances, request General Department of Customs in writing to apply customs-based line classifications so as to inspect exported and/or imported goods subject to tax refund-related high risks. The request shall clarify the criteria and method of inspection of imported and/or exported goods of the enterprise; commodities; areas and export/import operation in accordance with the Law on Customs.

Within 5 working days from receipt of the request sent by General Department of Taxation, General Department of Customs shall apply customs-based line classification and carry out inspection imported/exported goods. In case of non-application of line classification or difficulties arising, General Department of Customs shall communicate with General Department of Taxation within the aforesaid time limit and provide explanation for the non-application.

Article 8. Application of taxation-based measures for cases of tax refund-related high risks

1. During a taxation inspection, if a taxpayer is found that it/he/she has bought goods/services from another taxpayer (supplier) that be in doubt about tax evasion or tax fraud, the tax authority shall include the supplier in its inspection plan; or request the supervisory tax authority of the supplier to include such supplier in the inspection plan, and then carry out such an inspection and provide the information about the supplier’s compliance with taxation law as the basis for the VAT refund process.

2. In case of occurrence of payment between a taxpayer and an organization or individual having its name included in a warning list of entities related to doubtful transactions issued by Bank Supervision and Inspection Agency; or in case where a bank transfer confirmation with insufficient or inconsistent information obtained by a taxpayer is found by a taxation inspection:

a) The tax authority shall request the concerned credit institution or provider of payment intermediary services to provide information (including account statement) about the payer (or transferor), beneficiary of the sum of money in the bank transfer (or person related to the beneficiary) serving as basis for VAT refund;

b) The tax authority shall request the checkpoint customs authority in writing to provide information about the sum of cash (foreign currency or VND) brought in Vietnam through the checkpoint within 5 working days from the date on which the written request for process of VAT refund in terms of goods exported through land checkpoint sent by the tax authority.

3. If a taxpayer shows signs of tax evasion or tax fraud through a taxation inspection as prescribed in law on taxation and also shows signs of crime, the tax authority shall transfer documents to police authorities for handling in accordance with the Criminal Procedure Code.

4. After the time limit for taxation inspection, if the tax authority does not receive any reply or confirmation sent by concerned authorities prescribed in this Article:

a) With regard to claims subject to inspection before tax refund, if the tax authority determines that the amount eligible for tax refund differs from the amount requested for refund by the taxpayer, the procedures below shall be followed:

- If the requested amount is greater than the eligible amount, the taxpayer shall be refunded with the eligible amount.

- If the requested amount is less than the eligible amount, the taxpayer shall be refunded with the requested amount.

If the tax authority determines that the amount eligible for tax refund and the amount requested for refund by the taxpayer are the same, such amount of tax shall be refunded without pending verification of all documents in the claim; with regard to the requested amount subject to verification, the taxpayer is required to provide explanation and additional information or documents and the tax shall be refunded upon the full satisfaction of requirements as prescribed.

b) With regard to post-inspection claims, the tax authority shall finish the inspection within the time limit as prescribed. If the tax amount is refunded and pending verification results of relevant authorities, the tax authority shall clarify the insufficient grounds for determination of tax amount eligible for refund in the inspection record. Upon the verification results of relevant authorities, if the tax authority determines that the refunded amount is not eligible for refund, it shall issue a decision on withdrawal of the refunded amount and impose a fine on the taxpayer as prescribed by law.

Article 9. Responsibilities of tax authorities in receipt and process of claims

1. Each supervisory tax authority of taxpayers shall receive claims from taxpayers.

2. Each Department of Taxation shall process claim submitted by each taxpayer, including: classification of the claim; determination of refundable VAT amount; determination of amount of tax debts, fines, late payment interests deducted from refundable VAT amount; request for VAT refund; assessment of claim; issuance of decision on tax refund; and payment of tax refund to the taxpayer except for the case prescribed in Clause 3 of this Article.

3. Each of Sub-departments of Taxation in charge of taxpayers that are affiliated to Departments of Taxation of Hanoi, Ho Chi Minh, Binh Duong and Dong Nai is authorized to perform the following procedures to each taxpayer: classification of the claim; determination of refundable VAT amount; determination of amount of tax debts, fines, late payment interests deducted from refundable VAT amount; request for VAT refund before transferring the application to the Department of Taxation for assessment of claim; issuance of decision on tax refund; and payment of tax refund to the taxpayer.

Chapter II

CLAIMS FOR VAT REFUND

Article 10. Preparing and sending claims

1. Each claim consists of:

- The completed form No. 01/DNHT issued together with Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance) (hereinafter referred to as Circular No. 156/2013/TT-BTC).

- Other documents prescribed in Articles 50 through 56 (excluding Article 53) of Circular No. 156/2013/TT-BTC.

2. Each taxpayer being enterprise or organization eligible for VAT deduction or refund as prescribed in law on VAT and tax administration shall prepare and send a claim to its supervisory tax authority.

Each branch or affiliate of taxpayer prescribed in Clause 1 Article 45 of Law on enterprises No. 68/2014/QH13 being not accounting unit of financial statement as prescribed in Clause 4 Article 3 of the Law on Accounting No. 88/2015/QH13 that submit a claim shall obtain an authorization issued by the head office of the enterprise/organization in accordance with law on authorization.

3. A taxpayer may file an electronic claim online or file a physical claim directly or by post to the supervisory tax authority . In particular:

a) The taxpayer shall file an electronic claim via the website of General Department of Taxation from the date on which the tax authority accept the electronic VAT refund as prescribed in Circular No. 110/2015/TT-BTC dated July 28, 2015 of the Ministry of Finance on guidelines for electronic transactions in taxation (hereinafter referred to as Circular No. 110/2015/TT-BTC).

b) The taxpayer shall file a physical claim directly or by post to the supervisory tax authority.

4. If a taxpayer has filed a claim to a tax authority, but send a request for cancellation of such claim subsequently, the taxpayer is entitled to amend or supplement the requested tax amount for refund which is subsequently deducted from VAT amount in the following declaration period specified in the VAT declaration from the date on which the request for cancellation is made, provided that all requirements for VAT deduction are satisfied.

Article 11. Receiving claims

1. Receiving electronic claims

a) The website of General Department of Taxation shall automatically receive electronic claims filed by taxpayers.

b) The tax management system shall automatically keep record of electronic claims filed by taxpayers and transfer them to tax authorities for process as prescribed in Clause 2 and Clause 3 Article 9 of this Circular; and then send notifications of submission of electronic claims(using Form No.01/TB-TDT) issued together with Circular No. 110/2015/TT-BTC to taxpayers and supervisory tax authorities of taxpayers via the website of General Department of Taxation .

2. Receiving physical claims

a) Claims directly filed at tax authorities:

The “single window” department of the supervisory tax authority of a taxpayer shall receive and verify the sufficiency of the claim as prescribed. In case of insufficient claim, the “single window” department shall notify and instruct the taxpayer to complete the claim. In case of sufficient claim, the “single window” department shall keep record of such claim on the tax management system.

b) Claims filed by post:

The administration department of the supervisory tax authority of a taxpayer shall receive the claim of the taxpayer, keep record of it as prescribed, and then transfer the claim to the “single window” department for process in accordance with Point a of this Clause.

c) The Sub-department of Taxation shall send the claim to the Department of Taxation; and then the Department of Taxation shall process the claim as prescribed in Clause 2 Article 9 of this Circular within the working day or no later than the consecutive working day excluding the case prescribed in Point d of this Clause.

d) With regard to the Sub-department of Taxation in charge of claim prescribed in Clause 3 Article 9 of this Circular: the “single window” department shall transfer the claim to the Sub-department of Taxation in charge within the working day or no later than the consecutive working day.

3. Receiving date of claim

a) For electronic claims: the date in the notification of submission of electronic claim prescribed in Point b, Clause 1 of this Article.

b) For claims filed directly or by post: the submission date of claim as prescribed in Point b and Point c Clause 1 of Article 58 of Circular No. 156/2013/TT-BTC.

Article 12. Classifying claims

1. The tax authority shall classify claims as prescribed in Clause 1 and Clause 18 Article 1 of the Law on Tax administration No. 21/2012/QH13; Clause 3 Article 1 of Law No. 106/2016/QH13, in particular:

a) A claim shall be subject to inspection before tax refund if one of the following requirements are satisfied:

- VAT refund is made in accordance with treaty/treaties to which the Socialist Republic of Vietnam is a signatory, excluding the refund prescribed in Double Taxation Agreement of foreign transport companies.

-  A taxpayer files an initial claim.

If a taxpayer has filed an initial claim but it is not eligible for refund as prescribed, the subsequent claim shall still be considered initial claim.

- A taxpayer files a claim within 2 years from the date on which such taxpayer has been charged with tax evasion or tax fraud by a tax authority.

With regard to a tax payer who has filed multiple claims within 2 years, if the initial claim filed, from the date on which such taxpayer has been charged with tax evasion or tax fraud by a tax authority, is not considered inaccurate declaration resulting in deficit of tax payable or surplus of refundable amount prescribed in Clause 33 Article 1 of the Law on Tax administration No. 21/2012/QH13, or tax evasion or tax fraud prescribed in Article 108 of the Law on Tax administration and Clause 34 Article 1 of the Law on Tax administration No. 21/2012/QH13, any subsequent claims filed by such taxpayer shall not be subject to pre-inspection refund. If the taxpayer, in subsequent claims, still make inaccurate declaration, commit tax evasion or fraud as prescribed in Clause 33 and Clause 34 Article 1 of the Law on Tax administration No. 21/2012/QH13, Article 108 of the Law on Tax administration No. 78/2006/QH11, those claims are still subject to inspection before tax refund for 2 years, from the date on which such taxpayer has been charged with tax evasion or tax fraud.

- A taxpayer producing or trading exported goods that files a claim within 2 years, from the date on which such taxpayer incurs a penalty for smuggling or trafficking of goods across the border or trade fraud.

The tax authority shall, according to the decision on sanction against the smuggling or trafficking of goods across the border or trade fraud issued by competent authority on the database of tax refund management at the time of assessment, to treated it as a claim subject to inspection before tax refund. Within 2 years from the date on which the competent authority has issued a decision on sanction against the smuggling or trafficking of goods across the border or trade fraud at the time of assessment.

- The enterprise is engaged in acquisition, consolidation, division, dissolution, bankruptcy, conversion of business entity, shutdown; assignment, sale, business contracting or lease of state enterprises;

- High-risk taxpayers as prescribed in the Law on Tax administration are taxpayers ranked high risk, serious risk and taxpayers whose operation period is under 12 months prescribed in Circular No. 204/2015/TT-BTC.

- After the deadline as notified by the tax authority, the taxpayer fails to provide explanation or additional information or documents or the explanation or documents fails to prove that the declared tax amount is accurate even that they are provided.

b) Claims eligible for tax refund before inspection are those no specified in Point a of this Clause.

2. If a claim is subject to inspection before tax refund, the tax authority shall notify the taxpayer of the conversion of the claim subject to inspection before tax refund (using Form No. 01/HT-TB issued together with Circular No. 156/2013/TT-BTC) within 6 working days from the date on which sufficient claim is received as prescribed in Point a Clause 3 Article 58 of Circular No. 156/2013/TT-BTC If the taxpayer has filed an electronic claim, the notification shall be sent to the taxpayer via the website of General Department of Taxation.

Article 13. Verifying refundable VAT

1. For claims eligible for tax refund before inspection

The tax authority shall, according to claims filed by taxpayers and taxpayers’ information in the database of VAT refund, carry out inspection of eligible taxpayers and claims, in particular:

a) If a claim is not eligible for refund as prescribed in the Law on Value-added tax or the Law on Tax administration, within 3 working days from the date on which sufficient claim is received, the tax authority shall notify the taxpayer in writing of the rejection (using Form No. 02/HT-TB issued together with Circular No. 156/2013/TT-BTC) In case of an electronic claim, the notification shall be sent via the website of General Department of Taxation.

b) In case of eligible taxpayer and claim, the tax authority shall collate the requested refund amount and tax declaration of taxpayer. The refundable VAT amount has been declared in accordance with the Law on Tax administration and providing guidance; and satisfies requirements for tax deduction or refund prescribed in Clause 6 and Clause 7 Article 1 of the Law on Value-added tax No. 31/2013/QH13 dated June 19, 2013 (hereinafter referred to as the Law on Value-added tax No. 31/2013/QH13) and guiding documents.

c) If there are insufficient grounds for determining whether a claim and the taxpayer are eligible, the tax authority shall request the taxpayer in writing to provide explanation and additional information or documents (using Form No. 01/KTTT issued together with Circular No. 156/2013/TT-BTC) as prescribed in Clause 2 Article 60 of Circular No. 156/2013/TT-BTC  within 3 working days from the date on which the claim is received. In case of an electronic claim, the notification shall be sent via the website of General Department of Taxation. Within 10 working days from the date of notification, the taxpayer shall provide explanation or necessary amendments according to such notification. After the aforesaid time limit, the tax authority shall change it a claim subject to inspection before tax refund.

- If the information about the refundable VAT amount under the management of a regulatory agency which has established a regulation on communication and cooperation with the tax authority, the tax authority may not require taxpayer to provide explanation and additional information or documents.

- If the taxpayer has provided explanation and additional information or documents that do not justify the accurate declared tax amount, or has provided such explanation and additional information after the deadline required by the tax authority prescribed in Clause 2 Article 58 of Circular No. 156/2013/TT-BTC: The head of the tax authority shall approve the change of claim’s category from claim eligible for tax refund before inspection to claim subject to inspection before tax refund ; and notify the taxpayer in writing of such change (using Form No. 01/HT-TB issued together with Circular No. 156/2013/TT-BTC) within 6 working days from the receipt date of claim as prescribed in Point a Clause 3 Article 58 of Circular No. 156/2013/TT-BTC.

d) The period of time from the notification of amendments sent by the tax authority to receipt date of such additional information sent by the taxpayer shall not be included in the time limit for process of claim for the tax authority.

2. For claims subject to inspection before tax refund

a) The tax authority shall conduct an inspection visit at the premises of the taxpayer in accordance with Articles 78, 79 and 80 of the Law on Tax administration No. 78/2006/QH11 and guiding documents, and procedures for taxation inspection of tax agencies. According to the results of taxation inspection, the tax authority shall determine the refundable VAT amount given to the taxpayer. The refundable VAT amount has been declared in accordance with the Law on Tax administration and guiding documents; and satisfies requirements for tax deduction or refund prescribed in Clause 6 and Clause 7 Article 1 of the Law on Value-added tax No. 31/2013/QH13 and guiding documents.

b) During the taxation inspection, the tax authority shall apply the measures prescribed in Articles 7 and 8 of this Circular to determine the refundable VAT amount given to the taxpayer.

3. During the process of tax refund, if the tax authority, according to a taxation inspection, has detected a taxpayer showing signs of legal violations and has transferred the claim to police authority or a taxpayer having a competent authority seized accounting records and documentary evidence in connection with the requested tax amount, the tax authority shall notify the taxpayer of ineligible claim. The tax authority shall process the tax refund only when the police authority or competent authority provides results or findings or sufficient claim is provided as prescribed.

Article 14. Determining outstanding tax debts, late payment interests, and fines eligible for being offset against refundable VAT amounts

1. The tax authority shall determine outstanding tax debt, late payment interest, and fine (hereinafter referred to as tax arrears) to offset refundable VAT amount against such tax arrears amount of each taxpayer.

2. The taxpayer shall have the following kinds of tax arrears (excluding the tax arrears that are written off or paid in installments prescribed in Articles 32 and 39 of the Decree No. 83/2013/ND-CP dated July 22, 2013 of the Government on guidelines for the Law on Tax administration and Law on amendments to the Law on Tax administration):

a) Tax arrears under management of tax agencies on the tax management system;

b) Tax arrears (excluding customs fees and charges) notified by customs authority according to regulation on communication and cooperation between the customs authority and the tax authority;

c) Tax arrears payable to government budget according to written requests of competent authorities in accordance with regulations of law.

3. After offsetting the refundable VAT amount against tax arrears amount prescribed in Clause 2 of this Article, if the taxpayer being the head office of enterprise still have refundable VAT amount, but its dependent cost-accounting branch has an amount of tax arrears that are more than 90 days overdue under management of the tax authority on the tax management system, the tax authority shall continue offset such refundable VAT amount against the tax arrears amount. In case of multiple dependent cost-accounting branches  which incur tax arrears, the tax authority shall deduct the tax arrears in ascending chronological order.

If a dependent cost-accounting branch still has refundable VAT amount, it shall offset such amount against the tax arrears that are more than 90 days overdue incurred by the head office of enterprise.

4. The supervisory tax authority of taxpayers shall take responsibility for the tax arrears amounts displayed in the tax management system; the agency or organization that request tax arrears payable to government budget to be offset shall take responsibility for the figures provided for tax authority.

5. If a taxpayer requests a tax authority to offset its refundable VAT amount against an amount of tax arrears payable to government budget incurred by another taxpayer, the tax authority shall determine the refundable VAT amount and offset such amount against the tax arrears amount incurred by the other taxpayer (after offsetting the refundable VAT amount of the former taxpayer against its tax arrears as prescribed in Clause 2 and Clause 3 of this Article).

6. After receiving a decision on tax refund and deduction as prescribed in this Article, the taxpayer may raise query as to the tax arrears being offset against the refunded tax amount, the supervisory tax authority of the taxpayer, customs authority, and the agency or organization requesting the tax arrears to be offset shall deal with such query.

If the offset tax arrears amount is greater than the actual tax arrears amount, it shall be considered overpaid amount. The tax authority and customs authority shall deal with the case as prescribed in Clause 13 Article 1 of Law No. 21/2012/QH13 or the agency or organization request to have the tax arrears offset shall deal with the case in accordance with relevant laws.

Article 15. Requesting refund

1. The tax authority shall, according to the refundable VAT amount, non-refundable VAT amount, to-be-offset tax arrears, additional refundable VAT amount, make a request for VAT refund and a draft of decision on tax refund (or decision on tax refund and deduction), or a notification of rejection of claim (if any).

2. The tax authority shall inspect and update the following information on the tax management system: VAT declarations, claims for tax refund, tax refund inspection record (if any), decisions on tax settlement through inspection of compliance with tax laws (if any), proposals for tax refund, decision on tax refund draft ( or decision on tax refund and deduction), and notifications of rejection of claims (if any).

Article 16. Assessing claims

1. The tax authority shall assess a claim, including: Claim form for tax refund, draft of decision on tax refund (or decision on tax refund and deduction), and notification of rejection of claim (if any) before a decision on tax refund (or decision on tax refund and deduction) is issued.

Time limit for claim assessment: 1 working day for a claim eligible for tax refund before inspection; and 3 working days for a claim subject to inspection before tax refund from the date on which a sufficient claim is received for assessment.

2. The Department of Taxation shall assess the procedures for tax refund, claims, eligible taxpayers and cases, competence to issue decisions on tax refund and relevant issues.

a) If there any unclear of insufficient issues that are detected during a claim assessment, the tax authority shall consult with departments/agencies related to the process of the claim to reach a consensus on the claim assessment within the time limit for the claim; or reject the assessment of the claim which is insufficient or not updated on the tax management system as prescribed in Article 15 of this Circular.

b) If the claim assessment results find that procedures for tax refund, the claim, eligible taxpayer and case, and competence to issue the decision on tax refund comply with regulations of law, the tax authority shall update such assessment results on the tax management system.

Article 17. Supervising claims

1. According to the professional regulations on tax administration, procedures for tax refund, database of management of VAT refund, Director General of the General Department of Taxation shall build an automatic supervision system of VAT refund of tax authorities in accordance with every stage of modernizing tax administration system .

2. General Department of Taxation shall carry out the automatic supervision of claims on the tax management system. During the supervision process, if the tax management system determine that a claim is not eligible for issuance of a decision on tax refund/decision on tax refund and deduction, the tax management system shall automatically show reasons and subsequent steps for the Department of Taxation and the taxpayer.

3. The supervision results shall be automatically updated on the tax management system

Article 18. Issuing decisions on tax refund

1. According to the claim assessment and supervision results prescribed in Articles 16 and 17 of this Circular, Director of Department of Taxation shall consider issuing a decision on tax refund (using Form No. 01/QD-HT)/decision on tax refund and deduction (using Form No. 02/QD-HT) or a notification of rejection of claim (using Form No. 02/HT-TB) prescribed in Circular No. 156/2013/TT-BTC Directors of Departments of Taxation shall take responsibility for decisions on tax refund as prescribed.

2. A decision on tax refund/decision on tax refund and deduction shall be issued within 6 working days regarding a claim eligible for tax refund before inspection; or within 40 days regarding a claim subject to inspection before tax refund from the date on which the sufficient claim is filed by the taxpayer.

3. The decision on tax refund shall be sent to the taxpayer and relevant agencies and organizations. In case of an electronic claim, the decision on tax refund/decision on tax refund and deduction shall be sent via the website of General Department of Taxation as prescribed in Article 28 of Circular No. 110/2015/TT-BTC.

Article 19. Giving VAT refund to taxpayers

1. According to a decision on tax refund/decision on tax refund offset against amounts payable to government budget, Department of Taxation shall make an order to refund amounts payable to government budget/an order to refund and deduction t issued together with Circular No. 08/2013/TT-BTC on guidelines for state accounting applicable to management information system of budget and treasuries dated January 10, 2013 of the Ministry of Finance (amended in Decision No. 759/QD-BTC dated April 16, 2013 of the Ministry of Finance on amendments to Circular No. 08/2013/TT-BTC) and then send it to the State Treasury of province.

If a taxpayer offsets the refunded tax amount against the tax arrears incurred by another taxpayer as prescribed in Clause 3 and Clause 5 Article 14 of this Circular, the tax authority shall make an order to refund and deduction, including: name and tax identification number of the taxpayer having its amounts payable to government budget cleared in order for the Vietnam State Treasury to record the payment to government budget.

2. The State Treasury shall, upon receipt of a decision on tax refund and order to refund amounts payable to government budget (or decision on tax refund and deduction and order to refund and deduction) sent by the Department of Taxation, follow the procedures below:

a) Collate the decision on tax refund and the order to refund amounts payable to government budget (or the decision on tax refund and deduction and the order to refund and deduction) to ensure the matched information about amount of money, name of taxpayer receiving tax refund, bank’s address and account; and records of government budget revenues.

b) Verify the lawfulness of the order to refund amounts payable to government budget/ the order to refund and deduction in terms of matched seal and signature(s) (or verify the successful authentication of electronic signature in the system of the State Treasury).

c) Give tax refund to the taxpayer within 3 working days from the date on which the order to refund amounts payable to government budget/ the order to refund and deduction sent by the tax authority is received.

3. The State Treasury of province shall transfer copies of order to refund amounts payable to government budget/ the order to refund and deduction as prescribed in Circular No. 08/2013/TT-BTC and guiding documents to the tax authority at the same administrative level within the accounting day or within the consecutive working day.

If the tax authority and the State Treasury has communicated accounting records of tax refund and government budget collection by electronic means, they shall comply with regulations on electronic transactions promulgated by General Department of Taxation and State Treasuries.

Article 20. Disclosing tax refund progress

1. Each taxpayer filing electronic claim shall be entitled to access to information about the process of tax refund by the tax authority as prescribed in Circular No. 110/2013/TT-BTC.

2. The tax authority shall disclose the following information of a taxpayer on the website of General Department of Taxation:

Receiving date of claim; receiving date of written explanation, additional information or documents submitted by the taxpayer.

- Issuing date of notification, issuing date of decision on settlement of VAT refund by the tax authority.

Article 21. Inspection after tax refund

1. The tax authority shall make plans for and carry out inspection after tax refund as prescribed in Clause 18 Article 1 of the Law on Tax administration No. 21/2012/QH13.

2. The tax authority shall, according to the risk assessment results prescribed in Article 6 of this Circular, select the claims eligible for tax refund before inspection showing signs of high risks that are included in the subsequent inspection within the year and carry out the inspection on schedule as prescribed in Clause 18 Article 1 of the Law on Tax administration No. 21/2012/QH13.

3. According to the post-inspection visit at a taxpayer’s premises, if the refunded tax amount does not comply with regulations of law, the tax authority shall issue a decision on withdrawal of refunded tax amount, take actions against such violation and charge late payment interest as prescribed.

Chapter III

MANAGEMENT OF BUDGET FOR VAT REFUND

Article 22. Making budget estimates for VAT refund

1. Budget estimates for VAT refund shall be made as prescribed in the Law on Value-added tax, the Law on Tax administration, and the Law on State budget.

Procedures and forms of budget estimates for VAT refund shall comply with regulations on making of government budget estimates.

2. Departments of Taxation shall be responsible for making of budget estimates for VAT refund under tax refund management of provinces and central-affiliated cities. According to budget estimates for VAT refund made by Departments of Taxation, General Department of Taxation shall make budget estimates for VAT refund nationwide.

3. During the VAT refund to taxpayers, if the VAT amounts refundable is greater than the budget estimates, General Department of Taxation shall report the Minister of Finance for consideration as prescribed in the Law on government budget.

Article 23. Managing and administering budget for VAT refund

1. General Department of Taxation shall carry out management and administration of budget for VAT refund. Monthly and quarterly (no later than the 10^th of the consecutive month), General Department of Taxation shall determine refunded VAT amount, withdrawn VAT refund nationwide and make a budget estimates for remaining funding for VAT refund.

2. General Department of Taxation shall be in charge of information and regular reports on management of budget for VAT refund on the tax management information system nationwide. Monthly and quarterly, General Department of Taxation shall forecast VAT amounts refundable nationwide for monitoring and administration of VAT refund.

3. Annual budget estimates for VAT refund shall be managed and used as prescribed in the Law on government budget.

Article 24. Accounting for VAT refund at State Treasuries

1. Each State Treasury of province shall do accounting for VAT refund as prescribed in regulations on accounting for government budget in force.

Monthly and annually, the State Treasury of province and collate and confirm the accounting report on VAT refund with the tax authority at the same administrative level as prescribed.

2. Monthly and annually, upon the closing of accounting books, the Vietnam State Treasury shall provide figures of VAT refund given in every province/city and nationwide for General Department of Taxation for monitoring, collation and management of budget estimates for VAT refund.

Article 25. Accounting for withdrawn VAT refund

1. Any amount of withdrawn VAT refund paid in a fiscal year shall be accounted for a decrease in expenditure on VAT refund of such year.

2. At the end of a working day or no later than the consecutive working day, the Vietnam State Treasury of province shall send a statement of documents on withdrawal of VAT refund that are accounted (for electronic information communication) or documents on withdrawal of VAT refund (for physical documents communication) to the tax authority at the same administrative level to do accounting of domestic tax. The Vietnam State Treasury shall collate and confirm the accounting report on withdrawal of VAT refund with the tax authority at the same administrative level as prescribed.

3. Monthly and annually, upon the closing of accounting books, the Vietnam State Treasury shall provide figures of VAT refund withdrawn in every province/city and nationwide for General Department of Taxation for monitoring, collation and management of budget estimates for VAT refund.

Article 26. Making statement of budget sources for VAT refund

1. General Department of Taxation shall make statement of budget sources for VAT refund according to the budget estimates ratified by the National Assembly.

2. Director General of the General Department of Taxation shall facilitate the accounting for VAT refund at tax authorities as prescribed, and instruct Departments of Taxation to make statements of VAT refund given.

3. At the end of the fiscal year and after the period of budget amendments, General Department of Taxation shall make a statement of budget sources for VAT refund which is approved by Vietnam State Treasury and Department of Government Budget for the final statement of government budget as prescribed.

Chapter IV

RESPONSIBILTRIES OF REGULATORY AUTHORITIES IN MANAGEMENT OF VAT REFUND

Article 27. Responsibilities of tax authorities

1. Manage and conduct the process of VAT refund in accordance with the Law on Value-added tax, the Law on Tax administration, the Law on State budget, guiding documents, and this Circular.

2. Take charge of communication and cooperation of relevant authorities in perform professional tasks in management of VAT refund.

3. Create database and information technology applications for electronic VAT refund, apply risk management to VAT refund, supervise the VAT refund, enable taxpayers to search information about VAT claims under process handled by tax authorities on the website of General Department of Taxation.

4. Make budget estimates for VAT refund, manage estimates and VAT refund expenditures within the approved budget estimates for VAT refund, make statement of VAT refund expenditures and VAT refund withdrawal to ensure the security and accuracy of government budget and in accordance with regulations of law.

Article 28. Responsibilities of customs authorities

1. Carry out customs supervision and inspection of exported goods and imported goods of taxpayer as prescribed in law on customs.

2. Carry out communication and cooperation according to Regulation on communication and cooperation between customs authorities and tax authorities.

Article 29. Responsibilities of Department of Government Budget

1. Take charge and cooperate with General Department of Taxation in making of budget estimates for VAT refund, synthesize budget estimates for VAT refund, and make statement of budget for VAT refund as prescribed in the Law on government budget.

2. Cooperate with General Department of Taxation in administration of budget estimates for VAT refund approved by the National Assembly. In case of insufficient budget estimates for expenditures on VAT refund to taxpayer as prescribed in the Law on Value-added tax and the Law on Tax administration, Department of Government Budget shall send report to competent authorities as prescribed in the Law on government budget.

Article 30. Responsibilities of State Treasuries<0}

1. Keep track of documentary evidence on expenditures on VAT refund and withdrawal of VAT refund as prescribed in this Circular.

2. Do adequate, accurate and prompt accounting for expenditures on VAT refund and withdrawal of VAT refund as prescribed.

3. Cooperate with tax authorities in VAT refund to taxpayers within the approved budget estimates.

4. Provide tax authorities promptly with accurate and sufficient figures of expenditures on and withdrawal of VAT refund, determine actual expenditures on VAT refund and actual withdrawal of VAT refund as prescribed; and collate and confirm those figures with tax authorities monthly, quarterly and annually as prescribed in accounting for government budget.

5. Make statement of budget for VAT refund as prescribed in the Law on government budget.

Chapter V

IMPLEMENTATION

Article 31. Entry into force

1. This Circular comes into force from August 13, 2016.

2. From the effective date of this Circular, the following regulations shall be annulled:

- Circular No. 94/2010/TT-BTC dated June 30, 2010 of the Ministry of Finance on guidelines for VAT refund applicable to exported goods;

- Decision No. 2404/QD-BTC dated September 27, 2012 of the Minister of Finance promulgating Regulation on inspection of VAT refund in terms of claims eligible for tax refund before inspection;

- Circular No. 150/2013/TT-BTC dated October 29, 2013 of the Ministry of Finance on guidelines for making, management and making of tax refund from the Fund of value-added tax refund.

3. Transitional provision

a) Any of claims under scope of regulation of this Circular that is filed to a tax authority before the effective date of this Circular and eligible for tax refund as prescribed in law on value-added tax and the Law on Tax administration and the tax authority has following the process of tax refund in accordance with the Law on Tax administration (but the tax authority has not issued a decision on tax refund) shall apply regulations on tax refund before the effective date of this Circular.

b) Total balance of accounts of budget estimates for VAT refund that are allocated to Departments of Taxation (level 4) at the effective date of this Circular shall be withdrawn and deposited to the account of budget estimates for VAT refund of General Department of Taxation (level 1) for concentrated management at General Department of Taxation. Vietnam State Treasury shall provide guidelines for expenditures on, accounting for, and withdrawal of VAT refund as prescribed in this Circular.

4. Other issues arising that are not guided in this Circular shall comply with regulations on taxation in force.

5. During the implementation, if any of documents referred to in this Circular is amended or replaced, the amending or replacing document shall prevail.

Article 32. Implementation

1. Director General of the General Department of Taxation shall promulgate procedures for tax refund for the consistent implementation by tax agencies as prescribed in the Law on Tax administration, the Law on Value-added tax, the Law on Electronic transaction, guiding documents and this Circular; and also provide guidelines for initiation and inspection at tax authorities.

2. General Department of Taxation shall create database of VAT refund, regulations on communication between relevant agencies and information technology application in connection with agencies, organizations, and individuals related to management of VAT refund as prescribed in this Circular.

3. Heads of tax authorities, customs authorities, State Treasuries, Department of Government Budget and relevant organizations and individuals shall provide guidelines and implement this Circular.

Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Finance for consideration./.