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THE
MINISTRY OF FINANCE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
93/1999/TT-BTC
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Hanoi,
July 28, 1999
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CIRCULAR
GUIDING THE
REIMBURSEMENT OF VALUE ADDED TAX
The Ministry of Finance issued Circular No.
89/1998/TT-BTC of June 27, 1998; Circular No. 175/1998/TT-BTC of December
24,1998 guiding the implementation of the Government’s Decree No. 28/1998/ND-CP
of May 11, 1998 and Decree No. 102/1998/ND-CP of December 21, 1998 detailing
the implementation of the VAT Law; and Decision No. 1632/1998/QD-BTC of
November 17, 1998 promulgating the regulation on the establishment, management
and use of the VAT reimbursement fund. In order to reimburse VAT promptly and
according to schedule, the Ministry of Finance guides some specific matters on
VAT reimbursement as follows:
I. ON SUBJECTS ELIGIBLE FOR VAT
REIMBURSEMENT:
1. Subjects eligible for VAT reimbursement:
Business establishments which pay tax by
deduction method shall be considered for VAT reimbursement in the following
cases:
a) Business establishments for 3 consecutive
months have the deductible input tax amount larger than the output tax amount.
The deductible input tax amount includes the input tax amount arising in the
month and the deductible input tax amount carried forward from the preceding
month.
Example: Company B has the amount of
declared VAT as follows:
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Time
Input tax
Output tax
Difference
Payable tax
(progressive)
February
600
100
- 500
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March
100
200
+ 100
- 400
April
150
200
+ 50
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According to the above example, company B is the
subject entitled to the consideration for tax reimbursement. The reimbursed tax
amount for the 3 months is 350 million VN dong.
b) Business establishments dealing in export
goods, which have large amounts of reimbursed input VAT due to the exportation
of seasonal goods items and/or goods in big shipments with great value and/or
great quantity, shall be considered for tax reimbursement according to each
month or each goods shipment. A large reimbursed tax amount is determined as
from 300 million VN dong upwards.
c) Establishments producing and/or dealing in
goods and/or services liable to VAT, which procured fixed assets for new
investment or extensive/intensive investment; the reimbursement of input VAT on
newly procured fixed assets shall comply with provisions in Points a and b,
Clause 2, Article 15 in the Government’s Decree No. 28/1998/ND-CP.
d) Besides the above-mentioned subjects, the
business establishments, which, when making final tax settlement upon their
merger, splitting up, dissolution or bankruptcy, have the overpaid VAT amount,
shall be entitled to the tax reimbursement if they so request; as shall be
business establishments which have got decisions on tax reimbursement from
competent bodies (for these cases, regardless of whether the business
establishments pay VAT by tax deduction method or by direct calculation on
added value).
2. Subjects eligible for VAT reimbursement shall
have to:
a) Compile dossiers requesting tax reimbursement
and file them to the tax authorities. The tax reimbursement dossier is defined
for each case according to Point I - Part D in Circular No. 89/1998/TT-BTC of
June 27, 1998 of the Ministry of Finance.
b) In cases where the dossiers are unclear or
incomplete and the tax authorities request the establishments to make
supplements or clarification, the establishments requesting tax reimbursement
shall have to supply supplementary dossiers or make clarification at the tax
authorities’ request.
c) Enterprises requesting the tax reimbursement
shall be responsible for the accuracy of declared figures related to the
determination of the amount of reimbursed tax. All cases of errors, when
detected through inspection, shall be dealt with by retrospective collection of
tax. Depending on the cause and seriousness of the violations, the violator
shall also be subject to a fine or the examination for penal liability
according to law.
II. TAX AUTHORITIES’ AND THE STATE TREASURY’S
COMPETENCE AND RESPONSIBILITIES IN THE SETTLEMENT OF VAT REIMBURSEMENT:
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a) The Directors of the provincial/municipal
Departments of Tax shall consider and issue decisions on VAT reimbursement to
eligible subjects directly managed by the Departments and Sub-Departments of
Tax.
b) The General Director of Tax shall consider
and issue decisions to reimburse tax to special subjects under the
authorization of the Minister of Finance and Corporations established by the
Prime Minister’s Decision No. 90/TTg of March 7, 1994 and Decision No. 91/TTg
of March 7, 1994 (called Corporations 90, 91 for short), if the tax
reimbursement is concentrated at the offices of Corporations.
2. Responsibilities of the tax authorities in
tax reimbursement:
a) To receive the tax reimbursement dossiers
from tax payers. The dossiers receiving section shall inscribe clearly the date
of receiving and promptly hand them to the examination and treatment section.
b) To check the dossiers, and determine the
amount of tax to be reimbursed:
- The dossiers examination section shall have to
check: the general declaration of the output VAT amount, the arising input VAT
amount to be deducted, the export contracts, the export goods processing
contracts signed with foreign parties, the export goods declarations with
certification of the actually exported goods volume by the bordergate Customs
authorities.
- To check the tax amount requested for
reimbursement; compare list of purchase receipts and sale invoices, the output
tax, the deductible input tax... with the business situation, tax collection
and payment in the previous month, thereby determining the actual amount of tax
to be reimbursed so as to fill the procedures for tax reimbursement to
enterprises.
In cases where the dossiers are found
incomplete, the tax authorities shall request the enterprises to supplement
them; if declarations are found unclear or untrue, the tax authorities may
exchange ideas with the enterprises for clarification and confirmation. In
specific cases, they can request enterprises to explain or add the evidencing
dossiers (not the examination).
The tax authorities shall have to consider
dossiers and settle the tax reimbursement for enterprises within 15 days after
receiving the dossiers requesting the tax reimbursement from the enterprises.
In cases where the dossiers examination, verification and supplement are
required... the maximum time limit is 30 days. If the procedures and conditions
for tax reimbursement are not met, the reply must be given to the enterprises
within 7 days after receiving the dossiers.
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After checking, if the procedures are completed
and conditions are met as defined in Point I - Part D of Circular No.
89/1998/TT-BTC of June 27, 1998 of the Ministry of Finance, to determine and
submit the tax amounts to be reimbursed to the Directors of Tax Departments for
issuing decisions to refund tax to the tax payers as prescribed by law.
After the tax is refunded, the tax authorities
may decide the examination or inspection at the establishment if there is
suspicion about the case or a need to organize the re-examination or reinspection
to determine accurately the amount of reimbursed tax.
3. Responsibilities of the State Treasury:
When receiving VAT reimbursement decisions and
spending authorization from the tax authorities, the provincial/municipal State
Treasuries shall make the expenditures on the VAT reimbursements to the
subjects within 3 days after receiving the dossiers of spending on tax
reimbursement. Simultaneously, provincial/municipal State Treasuries shall have
to immediately fill the procedures for settlement with VAT reimbursement fund
opened at the Central State Treasury.
III. ORGANIZATION OF IMPLEMENTATION
In order that the VAT is reimbursed in
accordance with law, the provincial/municipal People’s Committees are requested
to actively direct the tax authorities to make the timely and accurate VAT
reimbursement to the right subjects. At the same time, branches are requested
to co-ordinate with the tax authorities in inspecting and guiding the tax
payers in the strict observance of the regimes on accounting, statistics,
invoices, vouchers; to fully and accurately declare the payable tax amount as
well as the tax amount to be reimbursed at their requests.
This Circular takes effect 15 days after its
signing. All previous regulations on VAT reimbursement contrary to the
provisions of this Circular are annulled. In the course of implementation, if
any problems regarding the settlement of tax reimbursement arise, tax-payers,
branches and/or localities are requested to promptly report them to the
Ministry of Finance for study and settlement.
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