Thông tư 150/2013/TT-BTC

CIRCULAR

GUIDING THE SETTING UP, MANAGEMENT OF AND TAX REFUND FROM THE VALUE-ADDED TAX REFUND FUND

Pursuant to the November 29, 2006 Law No. 78/2006/QH11 on Tax Administration; the November 20, 2012 Law No. 21/2012/QH12 Amending and Supplementing a Number of Articles of the Law on Tax Administration and guiding documents;

Pursuant to the June 03, 2008 Law No. 13/2008/ QH12 on Value-Added Tax; the June 19, 2013 Law No. 31/2013/QH13 Amending and Supplementing a Number of Articles of the Value- Added Tax Law and guiding documents;

Pursuant to the December 16, 2002 Law No. 01/2002/QH11 on the State Budget and guiding documents;

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

At the proposal of the director of the Legal Affair Department, director of the Department of State Budget, the general director of the General Department of Taxation and General Director of the State Treasury;

The Ministry of Finance promulgates the Circular guiding the setting up, management of and tax refund from the value-added tax refund fund.

Section I. GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides the setting up, management of the value-added tax refund fund (hereinafter referred to as the tax refund fund) and the refund of value-added tax to eligible subjects as prescribed by law.

Article 2. Subjects of application

The General Department of Taxation, the Department of State Budget, the State Treasury, the tax departments of provinces and centrally-run cities (hereinafter referred to as the tax departments) and the provincial-level State Treasuries shall, within their functions and assigned tasks and according to this Circular, estimate, manage and refund the tax from the tax refund fund for eligible subjects under decisions of competent agencies.

Article 3. Principles of the setting up and management of tax refund fund

The tax refund fund is set up with collected amounts from value-added tax on imported goods. The tax refund fund may open an account for centralized management at the State Treasury with the general director of the General Department of Taxation as the account holder according to the authorization of Minister of Finance.

Section II. SPECIFIC PROVISIONS

Article 4. Estimate of funding sources serving the tax refund fund

1. Estimate of funding sources serving the tax refund fund (hereinafter referred to as the tax refund fund estimate) will be made together with annual state budget estimate as prescribed by the State Budget Law and guiding documents,

2. In the course of implementation, if the refundable VAT amounts arise in excess of the estimate, the Department of State Budget shall assume the prime responsibility for, and coordinate with the General Department of Taxation in, submitting them to the Minister of Finance for consideration and settlement as prescribed by law.

Article 5. Management of funding serving the tax refund fund

1. Based on the approved tax refund fund estimate, the Department of State Budget shall notify the General Department of Taxation of management and monitoring of expenditures of the tax refund fund at the State Treasury.

2. Based on the approved tax refund fund estimate, the VAT refund expenditure estimate, the collected and refunded value-added tax amounts of the previous quarter and last year of provinces and centrally run cities, the General Department of Taxation shall allocate and notify the provincial-level tax departments and State Treasuries of tax refund fund use limits for the whole year (divided to quarters). Based on tax refund amounts paid by the General Department of Taxation in the previous quarter and last year, the General Department of Taxation shall determine and allocate the tax refund fund use limits for performing tax refund under its tasks; and notify the State Treasury of its tax refund fund use limit and the tax refund fund use limits allocated to the tax departments.

The tax refund fond use limits are allocated and notified in accordance with the above-mentioned provisions together with the allocation of annual budget revenue estimates.

3. The tax departments shall coordinate with the State Treasuries at the same level in summing up and making reports on implementation of the tax refund fund use limits and the results of value-added tax refund monthly, quarterly, biannual and annual to the General Department of Taxation for summing up and reporting them to the Minister of Finance and send to relevant units for coordination in management.

The General Department of Taxation shall guide on report form; the time limit for reporting the implementation of the tax refund fund use limits and the results of value-added tax refund.

Article 6. Tax refund

1. Tax refund is considered and decided as prescribed in the Law on Value-Added Tax and the Law on Tax Administration and guiding documents.

2. During implementation, tax agencies must control and compare the tax refund with the allocated tax refund fund use limits. In case the refundable tax amounts arise in excess of the limits allocated to localities, the tax departments shall report to the General Department of Taxation for consideration and settlement.

3. The General Department of Taxation shall assume the prime responsibility for, and coordinate with the Department of State Budget in, allocating in advance the tax refund fund use limits for the next quarter to tax agencies with deficient limits. In case where deficit of limits falls in the last quarter of the year, limits may be regulated from tax offices with limit surplus to those with limit deficit. In case where the approved tax refund fund estimate is not sufficient for value-added tax refund, Clause 2, Article 4 of this Circular shall be complied with.

Article 7. Expenditure contents of the tax refund fund

The tax refund fund is used to refund value-added tax to taxpayers who are eligible for value-added tax refund as prescribed in the Law on Value-Added Tax and guiding documents.

In case where taxpayers are refunded overpaid value-added tax amounts according to Clause 13, Article 1 of the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration, central and local budget revenues will be reduced respectively the percentage of revenues divided previously for each budget level under regulations, not using the tax refund fund for such expenditure.

Article 8. Process of tax refund

1. In case where the General Department of Taxation conducts tax refund

Upon receiving decisions on value-added tax refund or decisions on tax refund and clearing the state budget revenue and attached dossiers sent by the General Department of Taxation as prescribed in Clause 2, Article 9 of this Circular, the State Treasury shall receive dossiers, control expenditures and carry out procedures for value-added tax refund for eligible subjects within the tax refund fund use limits notified to the General Department of Taxation.

2. In case where the tax departments conduct tax refund

Upon receiving decisions on VAT refund or decisions on tax refund and clearing the state budget revenue and attached dossiers sent by the tax departments as prescribed in Clause 2, Article 9 of this Circular, the provincial-level State Treasuries shall receive dossiers, control expenditures and carry out procedures for value-added tax refund for eligible subjects within the tax refund fund use limits notified the tax departments.

3. In case where the refunded amounts to taxpayers exceed the limits, the State Treasury offices shall notify tax offices at same level thereof for implementation according to Clauses 2 and 3, Article 6 of this Circular.

4. Within the first 15 days of the month, quarter, first half of year and year, the provincial-level State Treasuries shall sum up expenditures for value-added tax fund in their localities and send them to tax departments at the same level for summing up and reporting them to the General Department of Taxation as prescribed in Clause 3, Article 5 of this Circular, concurrently send them to the State Treasury for monitoring and reviewing.

Article 9. Control of value-added tax refund at state treasury offices

1. The State Treasury offices receiving decisions on value-added tax refund and attached dossiers shall:

a) Control the adequacy and conformity with law (such as the deciding competence and validity) of dossiers requesting the State Treasury offices to refund value-added tax;

b) Compare tax-refund amounts with the assigned tax refund fund use limits, and control the tax refund by tax offices;

c) Refund tax within the notified limits of tax offices.

2. A dossier requesting a State Treasury office to refund value-added tax (hereinafter referred to as dossier) comprises:

a) A decision on tax refund or a decision on tax refund and state budget revenue clearing;

b) An order for refunding the state budget revenue;

c) Documents notifying those eligible for tax refund by the tax office (if any);

d) Other documents related to tax refund.

3. The control process of value-added tax refund

A State Treasury office shall base on the decision on value-added tax refund and attached dossier sent by the tax office to classify and control as follows:

a) For case of tax refund before inspection:

- If the dossier is complete and conforms to law as determined through inspection, the State Treasury office shall refund tax to eligible subjects within the notified limits of the tax office.

- If the dossier is incomplete as determined through inspection, the State Treasury office must request the tax office to supplement the dossier.

- If signs of incompliance with law are detected through inspection, the State Treasury office shall suspend the tax refund and concurrently notify such to the tax office for transfer of the dossier to be subject to tax refund first, inspection later and remedy the violation (if any).

b) For case of inspection first, tax refund later:

- If the dossier is complete and compliant with law as determined through inspection, the State Treasury office shall refund tax to eligible subjects within the notified limits of the tax office.

- If the dossier is incomplete as determined through inspection, the State Treasury office shall request the tax office to supplement the dossier.

- If signs of nonconformity to law are detected through inspection, the State Treasury office shall suspend the tax refund, concurrently notify the tax office thereof for further inspection, clarification and remedy of the violation (if any).

4. The State Treasury shall monitor the value-added tax refund within the notified limits. In case where the tax office requests value-added tax refund in excess of limits, the State Treasury office shall suspend the refund, concurrently notify the tax office at the same level thereof for timely handling.

5. Monthly, quarterly or annually, the State Treasury office shall coordinate with the tax office in examining and comparing dossiers and limits to detect decisions on value-added tax refund and the paid amounts for value-added tax refund in contravention of regulations and the implementation within limits for timely remedy.

Article 10. Responsibilities of the General Department of Taxation

1. To coordinate with the Department of State Budget in formulating and submitting the tax refund fund estimates to the Minister of Finance for approval; to provide additional funding sources to the tax refund fund as prescribed in Clause 2, Article 4 of this Circular.

2. To guide tax departments to elaborate value-added tax refund expenditure estimates.

3. To allocate and notify the tax refund fund use limits of the year to the tax departments and tax refund tasks of the General Department of Taxation.

4. To decide on advance allocation of the tax refund fund use limit in the quarter for one tax department, regulate limits among tax departments when tax refund amounts arise in excess of the year’s limit.

5. To monitor the use of tax refund limits and implementation of value-added tax refund in localities.

6. To coordinate with the State Treasury in controlling expenditures for tax refund and periodically examining and comparing dossiers at tax offices.

7. To monthly, quarterly, biannually and annually sum up and make reports on implementation of tax refund fund use limits and results of value-added tax refund (certified by the State Treasury) to the Ministry of Finance and concurrently to the Department of State Budget.

8. To review and assess implementation of funding estimates for the tax refund fund and make final settlements with the state budget.

Article 11. Responsibilities of the State Treasury

1. To open the tax refund fund account according to Article 3 of this Circular.

2. To monitor and control value-added tax refund according to this Circular.

3. To refund value-added tax to eligible subjects in accordance with regulations.

4. To coordinate with tax offices in periodically examining, comparing dossiers.

5. To certify value-added tax amounts actually paid to subjects entitled to tax refund in each province or city.

Article 12. Responsibilities of the State Budget Department

1. To coordinate with the General Department of Taxation in making tax refund fund estimate, to be included in the annual state budget.

2. To coordinate with the General Department of Taxation in managing the approved tax refund fund estimates; in case where estimates are insufficient, to coordinate with the General Department of Taxation in submitting them to the Minister of Finance for consideration and settlement as prescribed by law.

Section III. ORGANIZATION OF IMPLEMENTATION

Article 13. Effect

1. This Circular takes effect on January 01, 2014.

2. To annul the Decision No. 1632/1998/QD-BTC dated November 17, 1998, promulgating the Regulation on setting up, management and use of the value-added tax refund fund, and Decision No. 96/2002/QD-BTC dated June 18, 2002, amending and supplementing a number of provisions of the Regulation on setting up, management and use of the value-added tax refund fund, promulgated under the Decision No. 1632/1998/QD-BTC dated November 17, 1998 of Minister of Finance.

Article 14. Implementation responsibility

Heads of tax offices, the State Treasury, the Department of State Budget and relevant organizations and individuals shall guide and organize implementation of this Circular.

During the course of implementation, any problem should be promptly reported to the Ministry of Finance for study and settlement.