Many changes in value added tax refund management

(Baonghean.vn) - On August 31, the General Department of Taxation held a press conference to introduce new points in the regulations on value-added tax (VAT) refund management, implementing Law 106/2016/QH13 and Circular 99/2016/TT-BTC on the above content.

The Provincial People's Council supervises the results of administrative reform implementation at Nghe An Tax Department. Photo: Document

Accordingly, the General Department of Taxation has introduced important documents regulating this activity, contributing to solving difficulties and promoting production development. In particular, production and circulation of domestic agricultural and aquatic products; preventing fraud in VAT refunds in the circulation of agricultural and aquatic products; supplementing regulations to encourage deep processing; supporting enterprises to be proactive in investing in production development to improve competitiveness; contributing to simplicity, transparency, creating convenience for taxpayers and promoting administrative reform and modernizing tax management, in line with the trend of tax system reform.

At the press conference, the General Department of Taxation said that from 2009 to now, the tax authority has received documents and refunded 14,617 billion VND to Hung Nghiep Iron and Steel Company Limited (Formosa Ha Tinh). Of which, 10,601 billion VND is goods, machinery, equipment, raw materials... imported by Formosa and has paid import VAT to the State budget. The remaining amount is domestic input VAT of contractors. This is the amount of tax refunded in accordance with the provisions of the Law on VAT for newly established enterprises in the investment phase.

The General Department of Taxation also said that, according to the tax sector's target, in the period of 2016-2017, it will strive to achieve the target of 95% of tax refund dossiers being completed electronically. To do this, tax refunds will be carried out in 5 provinces and cities including: Hanoi, Ho Chi Minh City, Dong Nai, Hai Phong, Binh Duong, which are large areas where businesses are ready to apply information technology and are also localities that are always at the forefront of electronic tax declaration and payment.

Banks support electronic tax payment services.

By 2017, 95% of tax refunds will be made electronically via the tax sector's electronic information portal. Implementing electronic tax refunds will help businesses that comply with tax laws and have complete tax refund records in accordance with the law to receive a pre-refund and post-inspection via the internet within 6 working days of completing the tax refund application. However, the tax sector will also tighten the review and inspection of entities with a history of poor tax law compliance, even forcing them to be pre-inspected and post-refunded - Deputy General Director Cao Anh Tuan affirmed.

Since the beginning of the year, tax authorities at all levels have received 13,962 tax refund applications and 2,215 refund applications from 2015. The entire industry has processed 12,173 applications and refunded VND58,000 billion in taxes from businesses. Through inspections at tax authority headquarters, the tax industry has eliminated or announced that 1,821 applications with an amount of VND12,275 billion, accounting for 14.2% of the tax refunded amount, are not eligible for refund.

Red River