Tax refund package service in Vietnam

Tax refund is a regulation of the Ministry of Finance in refunding tax that enterprises and individuals have overpaid into the state budget. This is of great significance to every business. However, not all units and individuals are knowledgeable, know that benefit and have enough knowledge to be able to successfully implement tax refund documents. The tax refund package is an important solution to help individuals optimize their tax obligations and ensure reasonable benefits in accordance with the law. Viet An Tax Agent provides this service with a team of experienced experts who are familiar with current tax regulations. Through the support process, we help our clients understand the rules, deductions and procedures, and ensure that the application is processed correctly and saves time and costs.

What is a tax refund service?

Tax refund means that organizations, businesses and individuals are entitled to return the tax amount that has been collected in excess or in contravention of the tax law. The tax refund applies to all current taxes, of which, VAT refund accounts for the majority.

Tax refund shall be made when the taxpayer has temporarily paid tax but by the time the tax authority finalizes the tax, there is an overpaid tax amount, or for VAT on a periodic basis where the input tax amount is larger than the output tax amount or in case of tax collection in contravention of regulations on tax payers,  tax rates, tax exemption and reduction.

Cases eligible for tax refund

Article 18 of Circular 219/2013/TT-BTC stipulates 9 subjects and cases eligible for VAT refund, including:

• Business establishments that pay VAT by the tax deduction method if there is an input VAT amount that has not been fully deducted in a month (for cases of monthly declaration) or quarterly (for cases of quarterly declaration), shall be deducted in the next period; in case the input VAT amount has not been fully deducted after at least twelve months from the first month or after at least four quarters from the first quarter incurred, the business establishment shall be entitled to a tax refund.
• Business establishments newly established from investment projects that have registered their business and registered to pay VAT by the deduction method, or projects on exploration and development of oil and gas fields that are in the investment stage and have not yet been put into operation, if the investment period is 01 year (12 months) or more, they shall be entitled to VAT refund of goods. services used for investment on a yearly basis.
• VAT refund for new investment projects.
• Business establishments in months (for cases of monthly or quarterly declaration) that have exported goods or services if the input VAT on exported goods and services has not been deducted from VND 300 million or more shall be refunded on a monthly basis. precious; In case the input VAT amount of exported goods and services that have not yet been deducted in a month or quarter is less than VND 300 million, it shall be deducted in the following month or quarter.
• Business establishments that pay VAT by the tax deduction method are entitled to VAT refund upon ownership conversion, enterprise transformation, merger, consolidation, division, separation, dissolution, bankruptcy or termination of operation with overpaid VAT amounts or input VAT amounts that have not yet been fully deducted.
• VAT refund for programs and projects funded by non-refundable official development assistance (ODA) or non-refundable aid and humanitarian aid.
• Subjects entitled to diplomatic privileges and immunities in accordance with the law on diplomatic preferences and immunities purchase goods and services in Vietnam for use with a refund of the paid value-added tax amount inscribed on the value-added invoice or on the payment voucher inscribed with the payment price with value-added tax.
• Foreigners and overseas Vietnamese holding passports or entry papers issued by foreign competent agencies shall be entitled to tax refund for goods purchased in Vietnam and carried with them upon exit. The VAT refund shall comply with the Ministry of Finance’s guidance on VAT refund for goods purchased in Vietnam by foreigners and overseas Vietnamese who carry them upon exit.
• Business establishments shall have decisions on tax refund of competent agencies in accordance with law and in case of VAT refund under treaties to which the Socialist Republic of Vietnam is a contracting party.

Cases of personal income tax refund are detailed in Clause 2 of Article 8 of the Law on Personal Income Tax 2007 as follows:

“Tax management and tax refund

…1. The tax registration, tax declaration and deduction, tax payment, tax finalization, tax refund, handling of tax-law violations and tax administration measures shall comply with the provisions of the law on tax administration.

…2. Individuals shall be entitled to tax refund in the following cases:
.. a) The paid tax amount is greater than the payable tax amount;
.. b) Individuals who have paid tax but have taxable incomes that are not enough to pay tax;
.. c) Other cases under decisions of competent state agencies.”

At the same time, in Article 28 of Circular No. 111/2013/TT-BCT, there are the following provisions:

“Tax refund

…1. Personal income tax refund applies to individuals who have registered and have tax identification numbers at the time of submission of tax finalization dossiers.

…2. For individuals who have authorized income payers to make tax finalization on their behalf, the tax refund of individuals shall be made through income-paying organizations and individuals. Income-paying organizations and individuals shall offset the overpaid and underpaid tax amounts of individuals. After clearing, if there is still an overpaid tax amount, it shall be cleared in the next period or refunded if there is a request for refund.

…3. Individuals who are subject to direct declaration to tax authorities may choose to refund or clear tax in the next period at the same tax authority.

…4. In case an individual incurs a personal income tax refund but delays the submission of the tax finalization declaration as prescribed, no penalty shall be imposed for the administrative violation of making tax finalization declaration after the time limit.”

Based on the above provisions, the conditions for personal income tax refund include:

• Taxpayers need to have registered and have a tax identification number at the time of submission of tax finalization dossiers.
• Individuals will be eligible for a tax refund in the following situations:
• The paid tax amount is greater than the payable tax amount.
• The individual has paid tax, but the taxable income has not reached the taxable level.
• Other cases under decisions of competent state agencies.
• If the individual has authorized the tax finalization to the organization, the tax refund will be made through the income-paying organization or individual.
• For individuals who declare directly to the tax authority, they can choose to refund or clear tax in the next period at the same tax authority.

The process of implementing tax refund services

Step 1: Receive information from customers, survey and advise customers

• After receiving the information: Viet An Tax Agency will conduct a survey and provide consultation (directly or via phone, Zalo, email depending on the customer’s request).
• After the survey and discussion with the customer: Viet An Tax Agency informs the customer about the status of the tax refund documents and the possibility of a tax refund.

Step 2: Quote the service fee and agree on the contract

It depends on and in which case the customer is eligible for tax refund and the possibility of tax refund, the situation of the customer for Viet An Tax Agent to send the customer an appropriate service quotation.

Step 3: Implement the content of tax refund according to the contract

Immediately after signing the contract or agreement with the customer, Viet An Tax Agent will assign the work to ensure the schedule until the customer receives the tax refund.

Tax refund services of Viet An Tax Agent

• Consultation and support on issues related to tax refunds in particular and overall tax accounting in general.
• Review all invoices, documents, accounting books, and financial statements.
• Collect information, check information regarding the tax refund.
• Guide customers to prepare all necessary documents and information to complete the tax refund documents.
• Supplement documents and related forms for tax refund.
• Prepare a complete tax refund documents
• Explain to the tax authorities if any issues arise.
• Monitor the tax refund process until the customer receives the tax refund.

If you have any difficulties or questions related to the tax refund package, please contact Viet An Tax Agent for the most specific advice.