Circular No. 99/2016/TT-BTC guiding the management of VAT refund

CIRCULAR

GUIDELINES ON MANAGEMENT OF VAT REFUNDS

Pursuant to the Law on Tax Administration No. 78/2006/QH11 dated November 29, 2006; Law No. 21/2012/QH13 amending and supplementing certain Articles of the Law on Tax Administration dated November 20, 2012; Law Amending and Supplementing Certain Articles of Laws on Tax dated November 26, 2014 No. 71/2014/QH13 and guiding documents therefor;

Pursuant to the Law on Value Added Tax No. 13/2008/QH12 dated June 3, 2008; Law Amending and Supplementing Certain Articles of the Law on Value Added Tax No. 31/2013/QH13 dated June 19, 2013; Law Amending and Supplementing Certain Articles of the Law on Value Added Tax, Special Consumption Tax Law, and Law on Tax Administration No. 106/2016/QH13 dated April 6, 2016 and guiding documents therefor;

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

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

Based on the proposal of the Director General of the General Department of Taxation.

The Minister of Finance issues this Circular guiding the management of VAT refunds.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Circular guides the management of VAT refunds for taxpayers under the jurisdiction of tax authorities in accordance with the State Budget Law, the Law on Value Added Tax, the Law on Tax Administration, and guiding documents therefor; including: receiving, processing, inspecting, and auditing VAT refunds; managing budgeted funds for VAT refunds; responsibilities of relevant agencies, organizations, and individuals in managing VAT refunds.

2. Refunds for goods carried by foreigners and overseas Vietnamese when exiting the country shall be implemented in accordance with the guidelines set forth in Circular No. 72/2014/TT-BTC dated May 30, 2014 of the Ministry of Finance.

3. Refunding excess or erroneously paid VAT shall be carried out in accordance with Article 47 of the Law on Tax Administration No. 78/2006/QH11 and amended and supplemented at Clause 13, Article 1 of the Law on Tax Administration No. 21/2012/QH13 amending and supplementing certain Articles of the Law on Tax Administration and guiding documents therefor.

Article 2. Applicability

1. Taxpayers eligible for VAT refund November 26, 2024; in accordance with regulations of Value Added Tax Law value added tax.

2. Tax administration agencies include:

a) General Department of Taxation, Tax Bureaus, Tax Sub-bureaus;

b) General Department of Customs, Customs Bureaus, Customs Sub-bureaus.

3. Department of State Budget - Ministry of Finance.

4. National Treasury, Provincial and Central City National Treasury, District and County National Treasury.

5. State agencies, organizations, and other individuals related to THE HEAD OF THE MINISTRY’S OFFICE, THE HEAD OF THE MINISTRY’S INSPECTION DEPARTMENT, THE HEADS OF THE DEPARTMENTS, THE DIRECTOR OF THE VIETNAM CIVIL AVIATION ADMINISTRATION, THE CHIEF EXECUTIVE OFFICER OF THE VIETNAM AIRPORTS CORPORATION - CPTP, AND THE HEADS OF THE AUTHORITIES, ORGANIZATIONS, AND INDIVIDUALS CONCERNED ARE RESPONSIBLE FOR IMPLEMENTING THIS CIRCULAR./. VAT refunds November 26, 2024;.

Article 3. Principles of Management of VAT Refunds

1. Taxpayers eligible for VAT refunds under the provisions of the Law on Value Added Tax shall self-determine the amount of VAT eligible for deduction and refund, declare the request for refund, prepare and submit the application for refund to the directly managing tax authority.

2. The processing of VAT refunds shall be carried out in accordance with the provisions of the law, following the procedures and formalities stipulated in 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 18, Article 1 of the Law on Tax Administration No. 21/2012/QH13 dated November 20, 2012 amending and supplementing certain Articles of the Law on Tax Administration (hereinafter referred to as the Law on Tax Administration No. 21/2012/QH13) and guiding documents therefor.

3. Risk management principles shall be applied in the processing of VAT refunds in accordance with Clause 1, Article 1 of the Law on Tax Administration No. 21/2012/QH13; Clause 2, Article 1 of the Law Amending and Supplementing Certain Articles of the Law on Value Added Tax, Special Consumption Tax Law, and Law on Tax Administration No. 106/2016/QH13 dated April 6, 2016 (hereinafter referred to as the Law No. 106/2016/QH13) and guiding documents therefor. (hereinafter referred to as Law No. 106/2016/QH13) and guiding documents for implementation.

4. Tax authorities shall apply information technology in accordance with the law on electronic transactions in the process of receiving, processing, and managing VAT refunds and shall connect and exchange information with relevant agencies in the processing of VAT refunds for taxpayers.

Article 4. Value Added Tax Refund Budget

1. The budget for value added tax refunds is allocated within the annual state budget as decided by the National Assembly.

2. The Director General of the General Department of Taxation manages the budget for value added tax refunds and oversees the disbursement of value added tax refunds within the approved state budget.

3. The Director of the Tax Department manages and uses the budget for value added tax refunds to pay refunds to taxpayers according to their authority and is responsible for issuing refund decisions in accordance with the provisions of the law.

Article 5. Database and Information Technology Application in Managing Value Added Tax Refunds

1. The value added tax refund database is a system of information about taxpayers eligible for value added tax refunds, which is a component of the general tax management database of the tax sector. The construction, collection, processing, use, sharing, storage, and security of information in the value added tax refund database shall be carried out in accordance with current laws.

2. Tax authorities apply information technology in managing value added tax refunds, including: receiving, processing refund applications, notifying the results of refund application processing, exchanging information with relevant agencies in handling value added tax refunds.

Article 6. Risk Management in Managing Value Added Tax Refunds

1. The risk assessment in managing value added tax refunds is conducted in accordance 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 applying risk management in tax administration (hereinafter referred to as Circular No. 204/2015/TT-BTC).

2. Risk management in managing value added tax refunds

a) Classifying refund application files includes: refund application files subject to pre-refund, post-inspection and refund application files subject to pre-inspection, post-refund according to Clause 1, Article 1 of the Law on Tax Administration No. 21/2012/QH13, Clause 3, Article 1 of Law No. 106/2016/QH13; Tax authorities conduct post-refund inspections for high-risk refund application files.

b) Developing plans for post-refund inspection and audit according to Clause 18, Article 1 of the Law on Tax Administration No. 21/2012/QH13, Clause 4, Article 41 of Decree No. 83/2013/NĐ-CP: post-refund inspections are carried out based on risk management principles within ten years from the date of the refund decision.

Article 7. Application of Customs Business Measures for Certain High-Risk Tax Cases

1. Customs authorities are responsible for providing customs declaration information and related information to tax authorities through the e-Government Portal of the General Department of Customs in accordance with the Regulation on Information Exchange and Cooperation between Customs Authorities and Tax Authorities. Customs authorities are responsible for the accuracy of export and import goods information on customs declarations in accordance with customs laws and tax management laws.

In case there is no customs declaration in the database provided by the customs authority, the tax authority shall issue a written request to the relevant customs authority to provide information for the purpose of resolving value added tax refunds for taxpayers.

2. Based on the results of risk analysis and evaluation, requirements for managing value added tax refunds, or through inspections revealing signs of violations of tax and customs laws, the tax authority has the responsibility to provide information on taxpayer violations to customs authorities to implement customs inspection and supervision in accordance with regulations.

TGeneral Department of Taxation quarterly on the twentieth day of the following month or at any time when necessary, sends a written request to the General Department of Customs to apply criteria for channeling to carry out inspection and supervision of exported and imported goods at high risk of tax refunds. The request must clearly specify the criteria for determining and the methods of inspecting and supervising exported and imported goods for enterprises; product categories; geographical areas and fields of export and import activities in compliance with the provisions of the Customs Law.

Within the latest five working days from the date of receipt of the request from the General Department of Taxation, the General Department of Customs must apply channeling criteria and inspection measures for exported and imported goods. If not applied or encountering difficulties, the General Department of Customs shall exchange written communications with the General Department of Taxation within the specified period and clearly state the reasons for non-application or delay in application.

Article 8. Application of business management measures for tax refunds to certain high-risk cases

1. In cases where through inspection and audit, it is found that the taxpayer has purchased goods or services from another taxpayer (the supplier) with acts of tax evasion or fraud, the tax authority must supplement the inspection and audit plan for the supplier; or request the direct managing tax authority of the supplier to supplement the inspection and audit plan and implement inspections and audits or provide information on the compliance with tax laws by the supplier to have grounds for resolving tax refunds.

2. In cases where the taxpayer has transactions involving organizations or individuals listed in the suspicious transaction alert list of banking supervisory authorities; or through inspection and audit, it is found that the taxpayer's bank payment documents contain incomplete or non-compliant contents:

a) The tax authority shall issue a document requesting financial institutions and service providers involved to provide information (including account statements) of the payer (or transferor) and the beneficiary (or related individuals) on the document to have grounds for resolving value-added tax refunds.

b) The tax authority shall issue a document requesting customs authorities at border gates to provide information on the amount of cash (foreign currency or Vietnamese dong) brought into Vietnam within five working days from the date of receipt of the tax authority's request to have grounds for resolving value-added tax refunds for exported goods across land borders as prescribed.

3. In cases where through inspection and audit, it is found that the taxpayer has signs of tax evasion or fraud according to tax laws and there are criminal indications, the tax authority shall transfer the file to the police agency for handling according to the Criminal Procedure Code.

4. If beyond the inspection and audit deadline, the tax authority has not received responses or verifications from relevant agencies mentioned in this Article:

a) In cases where the file requires pre-inspection before refund, the tax authority shall inspect and determine the amount of tax eligible for refund different from the amount of tax requested for refund shall be handled as follows:

- If the amount of tax requested for refund is greater than the amount of tax eligible for refund, the taxpayer shall be refunded the amount of tax eligible for refund.

- If the amount of tax requested for refund is less than the amount of tax eligible for refund, the taxpayer shall be refunded the amount of tax requested for refund.

In case if the tax authority determines the amount of tax eligible for refund, it shall process the refund of the tax already eligible for refund without waiting for verification of the entire file; for the amount of tax requiring verification, the taxpayer shall be required to explain and supplement the file, then the refund shall be processed when all conditions are met as prescribed.

b) In cases of post-refund inspection and audit, the tax authority must conclude the inspection and audit within the prescribed time limit. For the amount of tax refunded pending responses or verifications from relevant agencies, the tax authority must clearly state in the inspection record and audit conclusion about the lack of sufficient grounds to conclude that the amount of tax is eligible for refund. When receiving responses or verifications from relevant agencies, if the tax authority determines that the amount of tax refunded is not eligible for refund, it shall issue a decision to recover the refunded tax and impose penalties on the taxpayer according to the law.

Article 9. Responsibilities of Tax Authorities in Receiving and Processing Value Added Tax Refund Applications

1. The direct managing tax authority of the taxpayer shall be responsible for receiving value added tax refund applications from taxpayers.

2. The Tax Department shall be responsible for processing value added tax refund applications of taxpayers, including: classifying refund applications; determining the amount of value added tax to be refunded to the taxpayer; determining the amount of tax arrears, fines, and late payment penalties to be offset against the value added tax to be refunded to the taxpayer; proposing the refund; reviewing the refund application; issuing the refund decision; implementing the refund payment to the taxpayer, except as provided for in Clause 3 of this Article.

3. The Tax Revenue Office directly managing taxpayers under the Tax Departments of Hanoi City, Ho Chi Minh City, Binh Duong Province, and Dong Nai Province shall perform the following tasks: classifying refund applications; determining the amount of value added tax to be refunded to the taxpayer; determining the amount of tax arrears, fines, and late payment penalties to be offset against the value added tax to be refunded to the taxpayer; proposing the amount to be refunded before transferring the application to the Tax Department for review; issuing the refund decision; implementing the refund payment to the taxpayer.

Chapter II

PROCEDURE FOR PROCESSING VALUE ADDED TAX REFUNDS

Article 10. Preparation and Submission of Value Added Tax Refund Applications

1. A value added tax refund application includes:

- Form requesting the return of State budget revenue (Form 01/ĐNHT issued together with Circular No. 156/2013/TT-BTC guiding the Law on Tax Administration dated November 6, 2013 of the Ministry of Finance) (hereinafter referred to as Circular No. 156/2013/TT-BTC). - Other documents as prescribed in Articles 50 to 56 (excluding Article 53) of Circular No. 156/2013/TT-BTC. 2. Enterprises and organizations that meet all conditions for deduction and refund of value added tax as stipulated by the Law on Value Added Tax and the Law on Tax Administration shall prepare and submit value added tax refund applications to the direct managing tax authority.

Branches and dependent units of taxpayers as prescribed in Clause 1, Article 45 of the Enterprise Law No. 68/2014/QH13 and not required to prepare financial statements according to Clause 4, Article 3 of the Accounting Law No. 88/2015/QH13, when requesting a value added tax refund must have a power of attorney from the head office enterprise as prescribed by the law on delegation.

3. Taxpayers may submit electronic value added tax refund applications or submit them directly to the tax authority or send them through postal services. Specifically:

a) Taxpayers submit electronic value added tax refund applications through the e-Government Portal of the General Department of Taxation from the time the tax authority accepts electronic tax refund transactions as prescribed in Circular No. 110/2015/TT-BTC dated July 28, 2015 of the Ministry of Finance guiding electronic transactions in the field of taxation (hereinafter referred to as Circular No. 110/2015/TT-BTC).

b) Taxpayers submit paper value added tax refund applications directly or send them through postal services to the direct managing tax authority.

4. If a taxpayer has submitted a tax refund request to the tax authority but later cancels the request in writing, the taxpayer may declare adjustments and supplements to the tax amount requested for refund to be deducted in the next period's value added tax declaration form, starting from the date of the cancellation letter, if they meet the conditions for deducting value added tax.

b) The taxpayer directly submits the tax refund application in paper form or sends it via postal service to the tax authority directly managing the taxpayer.

4. If the taxpayer has submitted the tax refund application to the tax authority but later cancels the refund request through a written notice, the taxpayer may declare adjustments and supplements to the amount of tax requested for refund and deduct it from the next value added tax declaration, starting from the date of the cancellation notice, provided that the conditions for deducting value added tax are met.

Article 11. Acceptance of Tax Refund Applications

1. Receiving Electronic Tax Refund Applications

a) The General Department of Tax's electronic portal automatically receives electronic tax refund applications from taxpayers.

b) The tax management application system automatically records electronic tax refund applications from taxpayers and transfers them to the tax authority for processing according to Clause 2 and Clause 3, Article 9 of this Circular; simultaneously sending the Notification of Receipt of Electronic Tax Refund Application (Form No. 01/TB-TĐT issued together with Circular No. 110/2015/TT-BTC) to the taxpayer and the directly managing tax authority through the General Department of Tax's electronic portal.

2. Receiving Paper Tax Refund Applications

a) Applications submitted directly to the tax authority:

The single-window unit of the directly managing tax authority receives the tax refund application, checks its completeness according to regulations. In case the application is incomplete, the single-window unit informs and guides the taxpayer to complete the application. If the application is complete, the single-window unit registers receipt of the tax refund application on the tax management application system.

b) Applications submitted via postal service:

The administrative office of the directly managing tax authority receives the tax refund application from the taxpayer, registers it according to regulations, and forwards it to the single-window unit for processing according to Point a of this Clause.

c) The Tax Revenue Office sends the tax refund application to the Tax Department responsible for processing the tax refund application according to Clause 2, Article 9 of this Circular immediately on the day of submission or at the latest the next working day, except in cases specified in Point d of this Clause.

d) For the Tax Revenue Office directly processing the tax refund application according to Clause 3, Article 9 of this Circular: the single-window unit transfers the tax refund application to the tax refund processing unit of the Tax Revenue Office immediately on the day of submission or at the latest the next working day.

3. Time of Accepting Tax Refund Applications

a) For electronic tax refund applications: it is the date recorded on the Notification of Receipt of Electronic Tax Refund Application as stipulated in Point b, Clause 1 of this Article.

b) For applications submitted directly to the tax authority or sent via postal service: it is the date of submission of the tax refund application determined according to the guidance in Point b and Point c of Clause 1, Article 58 of Circular No. 156/2013/TT-BTC.

Article 12. Classification of Tax Refund Applications

1. The tax authority classifies value-added tax refund applications according to Clause 1 and Clause 18, Article 1 of Law on Tax Administration No. 21/2012/QH13; Clause 3, Article 1 of Law No. 106/2016/QH13, specifically as follows:

a) Applications falling under pre-inspection, post-refund category include applications in the following cases:

- Refunds pursuant to international agreements to which the Socialist Republic of Vietnam is a party, except for refunds under double taxation treaties for foreign shipping companies.

- First-time refund requests by taxpayers.

In cases where a taxpayer submits a tax refund application to the tax management authority for the first time but does not qualify for a refund according to regulations, subsequent refund requests will still be considered first-time requests.

- Taxpayers requesting refunds within two years from the date they were processed by the tax management authority for tax evasion or fraudulent tax practices.

In cases where taxpayers have multiple refund requests within two years, if the first request made after being processed for tax evasion or fraudulent tax practices does not involve incorrect declarations leading to underpayment of taxes or over-refunds as stipulated in Clause 33, Article 1 of Law on Tax Administration No. 21/2012/QH13, or tax evasion or fraudulent tax practices as stipulated in Article 108 of the Law on Tax Administration and Clause 34, Article 1 of Law on Tax Administration No. 21/2012/QH13, subsequent refund applications will not fall under the pre-inspection, post-refund category. If subsequent requests reveal incorrect declarations or tax evasion or fraudulent tax practices as stipulated in Clause 33, Clause 34, Article 1 of Law on Tax Administration No. 21/2012/QH13, and Article 108 of Law on Tax Administration No. 78/2006/QH11, the refund application will still fall under the pre-inspection, post-refund category within the two-year period from the date of processing for tax evasion or fraudulent tax practices.

- Taxpayers producing or trading export goods requesting refunds within two years from the date they are processed by state management authorities for smuggling, illegal cross-border transportation of goods, or commercial fraud.

The tax authority bases classification of tax refund applications under the pre-inspection, post-refund category on information about Decisions on Penalties issued by relevant state management authorities regarding smuggling, illegal cross-border transportation of goods, or commercial fraud based on the tax refund management database at the time of evaluation. The two-year period is calculated from the date the state management authority issues a penalty decision for one of these offenses at the time of evaluation.

- Enterprises merging, consolidating, splitting, dissolving, going bankrupt, changing ownership form, ceasing operations; transferring, selling, leasing state-owned enterprises;

- Taxpayers classified as high-risk entities under the Law on Tax Administration, including taxpayers rated as high-risk or very high-risk, and taxpayers operating for less than twelve months as specified in Circular No. 204/2015/TT-BTC.

- After the deadline specified in a written notification from the tax authority, taxpayers fail to provide explanations or supplementary information as required by the tax authority, or provide explanations or supplementary information that do not prove the accuracy of the declared tax amount.

b) Applications falling under the post-inspection, pre-refund category are those not covered by Point a of this Clause.

2In cases where the classification result falls under the pre-inspection, post-refund category, the tax authority sends a Notification of Transfer of Tax Refund Application to the Pre-Inspection, Post-Refund Category (Form No. 01/HT-TB issued together with Circular No. 156/2013/TT-BTCto the taxpayer within six working days from the date of receiving all necessary documents for tax refund as stipulated in Point a, Clause 3, Article 58 of Circular No. 156/2013/TT-BTC. In cases where taxpayers perform electronic tax refunds, notifications shall be sent to the taxpayer through the General Department of Taxation's electronic portal.

Article 13. Determining the amount of value-added tax to be refunded for taxpayers

1. Fortax refund applications subject to pre-refund, post-audit

The tax authority shall base on the tax refund application of the taxpayer and information about the taxpayer managed by the tax authority in the value-added tax refund database to check the eligible subjects and cases for tax refund, specifically:

a) In cases where the tax refund application of the taxpayer does not fall under the eligible subjects and cases for tax refund as prescribed in the Law on Value-Added Tax, the Law on Tax Administration, within the latest period of three working days from the date of receiving all necessary documents, the tax authority shall issue a Notification regarding non-eligibility (Form No. 02/HT-TB issued together with Circular No. 156/2013/TT-BTC) to the taxpayer. In cases where taxpayers perform electronic tax refunds, the notification will be sent through the General Department of Taxation's electronic portal. VAT refunds b) In cases where the tax refund application of the taxpayer falls under the eligible subjects and cases for tax refund, the tax authority shall compare the amount of value-added tax requested for refund in the tax refund application with the taxpayer's tax declaration form.

The amount of tax to be refunded must ensure that it has been declared according to the provisions of the Law on Tax Administration and guiding documents; ensuring the conditions for deduction and refund as stipulated in Clause 6, 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) In cases where there is insufficient information to determine whether the tax refund application of the taxpayer falls under the eligible subjects and cases for tax refund, the tax authority shall establish and send a Notification November 26, 2024; to explain and supplement

information and documents (Form No. 01/KTTT issued together with Circular ) as prescribed in Clause 2, Article 60 of Circular 156/2013/TT-BTC to the taxpayer within the latest period of three 156/2013/TT-BTCworking days of taxpayers from the date the tax authority receives the tax refund application of the taxpayer. In cases where taxpayers perform electronic tax refunds, the notification will be sent through the General Department of Taxation's electronic portal. Within ten working days from the date the tax authority issues the notification, the taxpayer is responsible for sending explanations or supplementary information and documents as notified by the tax authority. Beyond this deadline, the tax authority will transfer the tax refund application to the category of pre-audit, post-refund. - In cases where information related to determining the amount of value-added tax to be refunded falls under the responsibility of state management agencies that have established regulations for information exchange and cooperation with the tax authority, the tax authority shall not require the taxpayer to provide explanations or supplementary information and documents. - In cases where the taxpayer has provided explanations or supplementary information but cannot prove that the declared tax amount is correct or fails to provide explanations or supplementary documents within the required timeframe by the tax authority as stipulated in Clause 2, Article 58 of Circular No. 156/2013/TT-BTC: The head of the tax authority shall be responsible for approving the change in classification of the taxpayer's tax refund application from pre-refund, post-audit to pre-audit, post-refund; simultaneously sending a Notification regarding the transfer of the application to the pre-audit, post-refund category (Form No. 01/HT-TB issued together with Circular No. 156/2013/TT-BTC) to the taxpayer within six working days from the date of receiving the application as stipulated in Point a, Clause 3, Article 58 of Circular No. 156/2013/TT-BTC.

d) The time period from the date the tax authority issues a notification requesting explanations and supplements until the date the tax authority receives the taxpayer's explanatory and supplementary documents shall not be counted in the processing time limit for the tax refund application of the tax authority.

tax refund applications subject to

pre-audit, post-refund

2. AGAINST a) The tax authority shall conduct inspections and audits at the taxpayer's premises in accordance with the provisions of the pre-check, post-refund

a) The tax authority conducts inspections and audits at the taxpayer's premises in accordance with the provisions of the Article 78, Article 79, Article 80 of the Law on Tax Administration No. 78/2006/QH11 and the guiding documents for implementation, according to the tax inspection procedures and the tax audit procedures of the tax sector. Based on the results of tax inspections and audits, the tax authority determines the amount of tax refund due to taxpayers. The tax refund must ensure that it has been declared in accordance with the provisions of the Law on Tax Administration and the guiding documents for implementation; ensuring the conditions for deduction and refund of value-added tax as stipulated in Clause 6, Clause 7 of Article 1 of the Law on Value-Added Tax No. 31/2013/QH13 and the guiding documents for implementation. c) In cases where there is insufficient information to determine whether the tax refund application of the taxpayer falls under the eligible subjects and cases for tax refund, the tax authority shall establish and send a Notification November 26, 2024; During the process of conducting tax inspections and audits, the tax authority applies measures as prescribed in Article 7, Article 8 of this Circular to have grounds to determine the amount of value-added tax eligible for refund by taxpayers.

b) In the process of handling tax refunds, if the tax authority discovers through tax inspections and audits that taxpayers have signs of violating the law and has transferred the file to the police for investigation, or if taxpayers' accounting books and related invoices and documents have been seized by competent state authorities, then the tax authority must

notify taxpayers about the incompleteness of the refund conditions. The tax authority will proceed to handle the tax refund when there is a result or opinion from the police or from the competent authority, or when all necessary documents are complete as required. Article 14. Determining the amount of tax, late payment interest, and fines still owed to be offset against the amount of value-added tax refundable. 1. The tax authority is responsible for determining the amount of tax, late payment interest, fines, and other revenues still owed to the state budget (hereinafter referred to as "tax arrears") to be offset against the amount of value-added tax refundable by taxpayers.

2. The tax arrears of taxpayers subject to offset (excluding tax arrears currently undergoing procedures to write off debts, tax arrears being paid gradually as provided for in Article 32, 39 of Decree No. 83/2013/NĐ-CP dated July 22, 2013 of the Government detailing the implementation of certain articles of the Law on Tax Administration and the Law amending and supplementing certain articles of the Law on Tax Administration), include:

a) Tax arrears managed by the Tax Department on the Tax Management Application System;

b) Tax arrears (excluding customs fees and charges) provided by the Customs Authority according to the Regulation on information exchange and cooperation between the Customs Authority and the Tax Authority;

c) State budget tax arrears based on the request of competent agencies and organizations as prescribed by law.

3. After offsetting according to the provisions of Clause 2 of this Article, in cases where the taxpayer's main office still has tax refunds but its branch has overdue tax arrears exceeding 90 days managed by the Tax Authority on the Tax Management Application System, the Tax Authority must continue to offset. If multiple branches have tax arrears, priority is given to the branch with the farthest due date.

If a branch has remaining tax refunds, it must be offset against the overdue tax arrears exceeding 90 days of the main office.

4. The tax authority directly managing the taxpayer shall be responsible for the tax arrears on the Tax Management Application System; the agency or organization requesting the offset of state budget tax arrears shall be responsible for the data provided to the tax authority.

5. In cases where taxpayers submit a request to the tax authority to deduct the tax refund to pay off tax arrears for other taxpayers, the tax authority shall determine the tax refund to be offset against the tax arrears of other taxpayers (after offsetting the tax arrears of the taxpayer as stipulated in Clause 2, Clause 3 of this Article).

6. After receiving the Decision on tax refund and offset of state revenue as prescribed in this Article, if taxpayers have any issues regarding the tax arrears offset against the tax refund, the directly managing tax authority, the Customs Authority, and the agency or organization requesting the offset of arrears shall be responsible for resolving these issues for taxpayers.

If the tax arrears offset exceed the actual tax arrears, it shall be determined as an overpayment. The tax authority, the Customs Authority shall handle it according to Clause 13 of Article 1 of Law No. 21/2012/QH13 or the agency or organization requesting the offset of tax arrears shall handle it according to relevant laws.

6. After receiving the Decision on Tax Refund and Offset of State Budget Revenue as stipulated herein, if the taxpayer encounters issues regarding the offset amount of outstanding tax against the refunded tax amount, the directly managing tax authority, customs office, and the organization requesting the offset must resolve these issues for the taxpayer.

In cases where the offset amount exceeds the actual outstanding tax amount, it shall be deemed as an overpayment. The tax authority and customs office shall handle this according to Clause 13, Article 1 of Law No. 21/2012/QH13, or the organization requesting the tax offset shall handle it in accordance with relevant laws.

Article 15. Proposal for Refund of Value Added Tax (VAT)

1. The tax authority based on the results determining the amount of VAT refundable, the amount of VAT not refundable, the amount of tax debt to be offset, the remaining amount of VAT to be refunded to the taxpayer, the proposal for refund of VAT and draft Decision on VAT refund (or Decision on VAT refund and offsetting state budget revenue) shall be prepared, and Notice on Non-refund of VAT (if applicable) shall be issued.

2. The tax authority must organize verification, update in the Tax Administration System for: VAT declaration files, refund application files, Inspection Report on VAT refund (if applicable), Decision on tax handling through inspection and examination of tax law compliance (if applicable), Refund Proposal Form, draft Decision on VAT refund (or Decision on VAT refund and offsetting state budget revenue), Notice on Non-refund of VAT (if applicable).

Article 16. Examination of VAT Refund Application Files

1. The tax authority organizes examination of VAT refund application files for: Refund Proposal Form, draft Decision on VAT refund (or Decision on VAT refund and offsetting state budget revenue), Notice on Non-refund of VAT (if applicable) before issuing the Decision on VAT refund (or Decision on VAT refund and offsetting state budget revenue).

The deadline for completing the examination of VAT refund is: 01 (one) working day for cases where VAT is refunded first and then inspected; 03 (three) working days for cases where inspection is conducted first and then VAT is refunded, starting from the date of full receipt of the examination application file.

2. The Provincial Tax Department shall examine the procedures for VAT refund, the refund application files, the subjects and cases eligible for VAT refund, the authority to issue the decision on VAT refund, and other related contents.

a) In cases where issues are found unclear or incomplete during the examination, the tax authority must organize exchanges and clarifications among relevant departments involved in processing the refund application files to reach consensus on the contents related to the examination of VAT refunds within the examination period; or reject the examination of the refund application files if they are incomplete or have not been updated into the Tax Administration System as stipulated in Article 15 of this Circular.

b) If the examination results confirm that the refund procedures, refund application files, eligible subjects and cases for refund, and the authority to issue the decision on VAT refund comply with regulations, the tax authority shall update the examination results of the VAT refund into the Tax Administration System.

Article 17. Monitoring of VAT Refund Application Files

1. Based on the business regulations on tax administration, the refund process, and the database on VAT refund management, the Director of the General Department of Taxation shall establish an automatic monitoring system for the processing of VAT refunds by the tax authority, suitable for each stage of modernizing the tax management system, ensuring completeness, accuracy, and compliance with tax management regulations.

2. The General Department of Taxation shall conduct automatic monitoring of VAT refund application files on the Tax Administration System. During the monitoring process, if the Tax Administration System determines that the file does not meet the Conditions for issuing the Decision on VAT refund/ Decision on VAT refund and offsetting state budget revenue, the Tax Administration System will automatically notify the reasons and subsequent actions required for the Provincial Tax Department to implement or notify the taxpayer to take action.

3. The monitoring results must be automatically updated into the Tax Administration System.

Article 18. Issuing a refund decision

1. Based on the results of the examination and supervision of the tax refund file as stipulated in Articles 16 and 17 of this Circular, the Director of the Tax Department shall consider signing to issue the Refund Decision (in form number 01/QĐ-HT) / Refund Decision with offset against State budget revenue (in form number 02/QĐ-HT) / Notice on non-refund of tax (in form number 02/HT-TB) as prescribed in Circular No. 156/2013/TT-BTC.in Form No. 01/QD-HT/ Decision on Tax Refund and Offset of State Budget Revenue (in Form No. 02/QD-HT), Notice of Non-Refundable Tax (in Form No. 02/HT-TB) as prescribed in Circular No. 156/2013/TT-BTC. The Director of the Tax Department shall be responsible for the tax refund decision in accordance with the provisions of the law.

||| Water-based fire extinguishing solutions.Time limit for issuing theRefund Decision / Refund Decision with offset against State budget revenue shall not exceed 06 (six)days for tax refund files that are subject to pre-refund inspection; Within ten working days from the date the tax authority issues the notification, the taxpayer is responsible for sending explanations or supplementary information and documents as notified by the tax authority. 40 (forty), days for tax refund files that are subject to pre-inspection dated post-refund, from the date of receipt of complete tax refund files of the taxpayer of the taxpayer.

3. The Refund Decision shall be sent to the taxpayer and relevant agencies. In cases where taxpayers implement electronic tax refunds, the Refund Decision / Refund Decision with offset against State budget revenue shall be sent through the Electronic Portal of the General Department of Taxation as prescribed in Article 28 of Circular No. 110/2015/TT-BTC.

Article 19. Refunding tax to taxpayers

1. Based on the Refund Decision / Refund Decision with offset against State budget revenue, the Tax Department shall establish the Order to Refund State Budget Revenue / Order to Refund with Offset Against State Budget Revenue issued together with Circular No. 08/2013/TT-BTC guiding the implementation of state accounting applicable to the State Budget Management Information System and Treasury Operations dated January 10, 2013 of the Ministry of Finance (amended and supplemented by Decision No. 759/QĐ-BTC dated April 16, 2013 of the Ministry of Finance regarding the correction of Circular No. 08/2013/TT-BTC), and send it to the provincial State Treasury along with the Refund Decision / Refund Decision with offset against State budget revenue.

In case of taxpayers Offsetting the refunded tax amount against the outstanding tax debt of another taxpayer according to Clause 3, Clause 5 of Article 14 of this Circular, the tax authority shall establish the Order to Refund with Offset Against State Budget Revenue, including information: name of the taxpayer, tax code of the taxpayer whose State budget revenue is offset, bank account information, and State budget revenue accounting information so that the State Treasury has the basis for accounting State budget revenue.

2. The provincial State Treasury shall accept the Refund Decision and the Order to Refund State Budget Revenue (or the Refund Decision with offset against State budget revenue and the Order to Refund with Offset Against State Budget Revenue) sent by the Tax Department, and perform the following tasks:

a) Verify the Refund Decision and the Order to Refund State Budget Revenue (or the Refund Decision with offset against State budget revenue and the Order to Refund with Offset Against State Budget Revenue) to ensure consistency in information about the amount, name of the taxpayer receiving the refund, bank address, account information, and State budget revenue accounting information.

b) Check the legality of the Order to Refund State Budget Revenue / Order to Refund with Offset Against State Budget Revenue to ensure that the stamp and signature match (or check the successful electronic signature verification using the State Treasury's information system).

c) Refund tax to the taxpayer within the latest period of 03 (three) working days from the date of receipt of the Order to Refund State Budget Revenue / Order to Refund with Offset Against State Budget Revenue transferred by the tax authority.

3. The provincial State Treasury shall circulate the relevant copies of the Order to Refund State Budget Revenue / Order to Refund with Offset Against State Budget Revenue according to Circular No. 08/2013/TT-BTC and other implementing guidelines to the tax department on the same day of accounting or at the latest on the next working day.

In cases where the tax authority and the State Treasury have exchanged accounting information on tax refunds and State budget revenue accounting electronically, they shall follow the regulations on electronic transactions of the General Department of Taxation and the State Treasury.

Article 20. Publicizing Information on Refund Processing

1. Taxpayers who implement electronic tax refunds shall be able to search for information regarding the processing of their refund by the tax authority according to Circular No. 110/2013/TT-BTC. as prescribed in Circular No. 110/2013/TT-BTC.

2. The tax authority shall publicize on the General Department of Taxation's online portal the following:

- The Point of receiving refund application files; the Point of receiving explanatory documents, supplementary information, and materials from taxpayers.

- The Point of issuing notifications and decisions on value-added tax refund processing by the tax authority.

Article 21. Post-refund Inspection and Audit for Taxpayers

1. The tax authority shall develop plans for post-refund inspections and audits and carry out such inspections and audits in accordance with Clause 18, Article 1 of the Law on Tax Administration No. 21/2012/QH13.

2. Based on the risk assessment results stipulated in Article 6 of this Circular, the tax authority shall select tax refund files that show high-risk signs for inclusion in the post-refund inspection and audit plan for the year and conduct such inspections and audits strictly within the timeframes specified in Clause 18, Article 1 of the Law on Tax Administration No. 21/2012/QH13.

3. Based on the results of post-refund inspections and audits at the taxpayer's premises, if it is found that the refunded tax amount does not comply with regulations, the tax authority shall issue a Decision to recover the refunded tax amount from the taxpayer, impose penalties, and charge late payment interest as prescribed.

Chapter III

MANAGEMENT OF REFUND EXPENSES FOR VALUE-ADDED TAX

Article 22. Budgeting Refund Expenses for Value-Added Tax

1. The budget for refund expenses for value-added tax shall be prepared in accordance with the Value-Added Tax Law, the Law on Tax Administration, and the State Budget Law.

The procedures and forms for preparing the budget for refund expenses for value-added tax shall be carried out in accordance with the regulations on preparing the state budget.

2. The Tax Departments shall be responsible for preparing the budget for refund expenses for value-added tax within their management scope in provinces and centrally-administered cities. Based on the budgets for refund expenses for value-added tax of the Tax Departments, the General Department of Taxation shall prepare the national budget for refund expenses for value-added tax.

3. During the process of refunding value-added tax to taxpayers, if the amount of value-added tax to be refunded exceeds the allocated budget approved by the competent authority, the General Department of Taxation shall report to the Minister of Finance in accordance with the State Budget Law.

Article 23. Management and Operation of Refund Expense Funds for Value-Added Tax

1. The General Department of Taxation shall manage and operate the refund expense funds for value-added tax, periodically (at least by the 10th day of the following month or quarter), compile the total amount spent on value-added tax refunds, the total amount recovered from value-added tax refunds nationwide, and determine the remaining budget for value-added tax refund expenses available for use.

2. The General Department of Taxation shall organize regular information and reporting on the management and use of refund expense funds for value-added tax based on a unified national tax management system. Monthly and quarterly forecasts of the value-added tax refunds required nationwide shall be conducted to monitor and manage the value-added tax refund process.

3. The annual budget for refund expenses for value-added tax shall be managed and utilized in accordance with the State Budget Law.

Article 24. Accounting for Value Added Tax Refunds at State Treasury

1. The provincial State Treasury shall carry out accounting and bookkeeping for Value Added Tax refunds in accordance with current regulations on state budget accounting.

On a regular monthly and annual basis, the provincial State Treasury shall reconcile and confirm the accounting reports on Value Added Tax refunds with the corresponding tax authority in accordance with the provisions.

2. On a regular monthly and annual basis, immediately after closing the books, the State Treasury shall provide information on the implementation of Value Added Tax refunds at each province and city and nationwide to the General Department of Taxation for monitoring, reconciliation, and managing the budget for Value Added Tax refunds.

Article 25. Accounting for Recovered Value Added Tax Refunds

1. The amount recovered from Value Added Tax refunds paid in a given fiscal year shall be accounted for as a reduction in Value Added Tax refunds expenditure of that fiscal year.

2. By the end of the working day or no later than the next working day, the provincial State Treasury shall send the Statement of Recovery of Value Added Tax Refunds (in case of electronic information exchange) or the recovery documents (in case of paper-based information exchange) to the corresponding tax authority for accounting and bookkeeping of domestic taxes. The State Treasury shall reconcile and confirm the accounting report on recovered Value Added Tax refunds for the tax authority in accordance with the provisions.

3. On a regular monthly and annual basis, immediately after closing the books, the State Treasury shall provide information on the implementation of recovered Value Added Tax refunds at each province and city and nationwide to the General Department of Taxation for monitoring, reconciliation, and managing the budget for Value Added Tax refunds.

Article 26. Settlement of Sources of Funds for Value Added Tax Refunds

1. The General Department of Taxation shall be responsible for settling the sources of funds for Value Added Tax refunds according to the approved budget.

2. The Director of the General Department of Taxation shall be responsible for organizing the accounting work for Value Added Tax refunds at all levels of tax authorities in accordance with the regulations and guiding the Tax Departments to settle the expenditure on Value Added Tax refunds.

3. At the end of the fiscal year and after the budget adjustment period, the General Department of Taxation shall settle the use of the sources of funds for Value Added Tax refunds, with confirmation from the State Treasury and the Budget Department of the Ministry of Finance to compile the settlement of the state budget in accordance with the regulations.

Chapter IV

RESPONSIBILITIES OF THE STATE MANAGEMENT AUTHORITIES IN MANAGING VALUE ADDED TAX REFUNDS

Article 27. Responsibilities of the Tax Authority

1. Managing and implementing Value Added Tax refunds in accordance with the Law on Value Added Tax, the Law on Tax Administration, the Law on State Budget, and the guiding documents issued to implement these laws and the Circular.

2. Taking the lead in exchanging information and coordinating work with relevant agencies in implementing business management measures for Value Added Tax refunds.

3. Building databases and applying information technology to implement electronic Value Added Tax refunds, applying risk management in Value Added Tax refunds, supervising Value Added Tax refunds, and supporting taxpayers to search for information on the processing of Value Added Tax refund applications on the General Department of Taxation's e-Government Portal.

4. Preparing the budget for Value Added Tax refund expenses, managing the budget and Value Added Tax refunds within the Value Added Tax refund budget. has been Approving, implementing the settlement of Value Added Tax refund expenses, recovering Value Added Tax refunds to ensure the safety and strictness of state budget funds and in accordance with the provisions of the law.

Article 28. Responsibilities of Customs Authorities

1. Conduct customs inspection and supervision over export and import goods of taxpayers in accordance with customs laws.

2. Exchange information and coordinate work in accordance with the Regulation on Information Exchange and Coordination between Customs Authorities and Tax Authorities.

Article 29. Responsibilities of the State Budget Department

1. Take the lead and coordinate with the General Department of Taxation in preparing the budget for value-added tax refunds, consolidating the budget for value-added tax refunds, and settling the budget for value-added tax refunds in accordance with the State Budget Law.

2. Coordinate with the General Department of Taxation to manage the budget for value-added tax refunds approved by the National Assembly. In cases where the budget for refunds is insufficient to cover value-added tax refunds for taxpayers as stipulated by the Value-Added Tax Law and the Tax Administration Law, take the lead in submitting to the competent authority in accordance with the State Budget Law.

Article 30. Responsibilities of the State Treasury

1. Monitor and control payment vouchers for value-added tax refunds, recover value-added tax refunds in accordance with this Circular.

2. Accurately record and promptly settle value-added tax refunds and recover value-added tax refunds in accordance with regulations.

3. Coordinate with tax authorities to refund taxes for taxpayers within the approved budget for value-added tax refunds..

4. Provide accurate, timely, and complete data to tax authorities regarding value-added tax refunds and recovered refunds of taxpayers, consolidate actual value-added tax refunds and recovered refunds in accordance with regulations; periodically reconcile and confirm with tax authorities according to state budget accounting regulations monthly, quarterly, and annually.

5. Settle the budget for value-added tax refunds in accordance with the State Budget Law.

Chapter V

IMPLEMENTATION

Article 31. Effective Date

This Circular takes effect from August 13, 2016.

2. From the date this Circular takes effect, the following documents shall cease to be effective:

- Circular No. 94/2010/TT-BTC dated June 30, 20100 of the Ministry of Finance guiding the implementation of VAT refunds for exported goods.;

- Decision No. 2404/QD-BTC dated September 27, 2012 of the Minister of Finance on the issuance of the Inspection System for VAT Refunds under the Pre-refund Post-inspection Scheme.;

- Circular No. 150/2013/TT-BTC dated October 29, 2013 of the Ministry of Finance guiding the establishment, management, and implementation of VAT refunds from the VAT Refund Fund.

3. Transitional Provisions

a) For tax refund application files within the scope regulated by this Circular submitted to the tax authority before the date this Circular takes effect, meeting the conditions and circumstances for tax refunds as stipulated by the Value-Added Tax Law and the Tax Administration Law, and the tax authority is currently processing the tax refund in accordance with the Tax Administration Law (the tax authority has not yet issued the tax refund decision), the provisions on tax refund processing prior to the date this Circular takes effect shall apply.

b) Recover the entire remaining balance in the budget account allocated for the use of the Tax Bureau (Level 4) at the time this Circular takes effect and transfer it back to the budget account for VAT refunds of the General Department of Taxation (Level 1) for centralized budget management at the General Department of Taxation. The State Treasury shall guide the settlement of tax refunds, record tax refunds, and recover VAT refunds in accordance with this Circular.

4. Other contents not guided by this Circular shall be implemented in accordance with current tax laws. on tax currently in force.

5. During the implementation process, if related documents cited are amended, supplemented, or replaced, they shall be implemented in accordance with the newly amended, supplemented, or replaced documents. cross-reference in This circular if amended, supplemented, or replaced, then implement according to the new amended, supplemented, or replacement document.

Article 32. Responsibility for Implementation

1. The Director of the General Department of Taxation shall issue a unified tax refund procedure applicable throughout the Tax Sector in compliance with the Tax Administration Law, the Value-Added Tax Law, the Electronic Transactions Law, implementing guidelines, and guidance provided in this Circular; direct, guide, and supervise implementation at all levels of tax authorities.

2. The General Department of Taxation shall establish a database on VAT refunds, coordination regulations, and information exchange with relevant agencies, and apply information technology to connect with relevant agencies, organizations, and individuals to manage VAT refunds in accordance with this Circular.

3. Heads of tax authorities, customs authorities, the State Treasury, the State Budget Department, and related organizations and individuals shall be responsible for guiding and organizing implementation in accordance with the contents of this Circular.

During the implementation process, if there are difficulties, organizations and individuals are requested to promptly reflect to the Ministry of Finance for research and resolution./.

Place of Receipt: - Central Party Office and Party Committees; - National Assembly's Office; - President's Office; - General Secretary's Office; - Supreme People's Procuracy; - Supreme People's Court; - State Audit Office; - Ministries, agencies equivalent to ministries, government agencies, - Central Agencies of Mass Organizations; - People's Committees, Departments of Finance, Taxation Services, State Treasury at provincial and centrally-administered city levels; - Government Gazette; - Ministry of Justice's Legal Documents Inspection Department; - Government website; - Website of the Ministry of Finance; Website of the General Department of Taxation; - Units under the Ministry of Finance; - To be filed: VT, GDT.

DEPUTY MINISTER DEPUTY MINISTER Do Hoang Anh Tuan