Numerous changes in value-added tax refund management.

(Baonghean.vn) - On August 31st, the General Department of Taxation held a specialized 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 the Nghe An Provincial Tax Department. (Photo: Archival image)

Accordingly, the General Department of Taxation has introduced important documents regulating this activity, contributing to resolving difficulties and promoting production development. These include: regulating the production and circulation of agricultural and aquatic products domestically; preventing VAT refund fraud in the distribution of agricultural and aquatic products; supplementing regulations to encourage deep processing; supporting businesses to proactively invest in production development to enhance competitiveness; contributing to simplification, transparency, and convenience for taxpayers; and promoting administrative reform and modernization of tax management, in line with the trend of tax system reform.

At a press conference, the General Department of Taxation announced that from 2009 to the present, the tax authorities have received applications and refunded 14,617 billion VND to Hung Nghiep Steel and Iron Company Limited (Formosa Ha Tinh). Of this amount, 10,601 billion VND was for goods, machinery, equipment, and raw materials imported by Formosa, for which import VAT had already been paid to the State budget. The remaining amount was for domestic input VAT paid by contractors. This tax refund was granted in accordance with the VAT Law for newly established businesses in their investment phase.

The General Department of Taxation also stated that, according to the tax sector's objectives, in the 2016-2017 period, they aim to achieve a target of 95% of tax refund applications being processed electronically. To achieve this, tax refunds will be implemented in five provinces and cities this November: Hanoi, Ho Chi Minh City, Dong Nai, Hai Phong, and Binh Duong. These are major areas where businesses are ready to apply information technology and are also leading localities in electronic tax filing and payment.

Banks support the implementation of electronic tax payment services.

By 2017, 95% of tax refund applications will be processed electronically through the tax authority's online portal. The implementation of electronic tax refunds will help businesses that comply well with tax laws and have complete tax refund applications in accordance with legal regulations to receive their refunds first and then undergo verification online within 6 working days from the date of completion of the application. However, the tax authority will also tighten scrutiny and inspection of those with a history of poor tax compliance, even requiring them to undergo verification first and then receive their refunds – Deputy Director General Cao Anh Tuan affirmed.

From the beginning of the year until now, tax authorities at all levels have received 13,962 tax refund applications and 2,215 applications carried over from 2015. The entire tax sector has processed 12,173 applications and refunded 58,000 billion VND in taxes to businesses. Through inspections at tax offices, the tax sector has rejected or declared 1,821 applications ineligible for tax refunds, totaling 12,275 billion VND, accounting for 14.2% of the requested refunds.

Red River