In 2023, the Tax sector accelerated VAT refund work to support businesses in capital turnover, recovery, and production and business development. Photo: H.Anh

Electronizing VAT refund procedures

According to data from the General Department of Taxation, as of December 6, 2023, the Tax authority has issued 17,087 VAT refund decisions with a total tax refund amount of VND 130,997 billion, equal to 81.8% of the 2023 estimate reported by the Ministry of Finance to the Government (VND160,000 billion), equal to 95% of the same period in 2022. Of which, there are 15,453 tax refund decisions for exports with a total refund of VND109,243 billion, accounting for 83.4% of the total refunded amount, equal to 88% compared to the same period in 2022; 863 tax refund decisions for investment projects with a total amount of VND 21,257 billion, accounting for 16.2% of the total refunded amount, equal to 152% compared to the same period in 2022; 771 tax refund decisions for others with a total amount of VND 498 billion, accounting for 0.4% of the total refunded amount, equal to 121% compared to the same period in 2022.

In the past year, the Tax industry has implemented many solutions in VAT refund management to speed up progress, especially modernization and application of technology in VAT refund settlement. Accordingly, the unit has issued Tax Refund Process No. 679/QD-TCT dated May 31, 2023 to replace Tax Refund Process No. 905, and upgraded and completed the tax management application, centralizing the module to settle tax refund applications, meeting the maximum electronicization of all VAT refund procedures, from receiving and accepting refund applications, classifying tax refund applications, processing applications, and appraising and issue tax refund decisions to spending VAT refund. All is done electronically on a centralized tax management application. At the same time, the Tax sector issued Decision No. 1388/QD-TCT dated September 18, 2023 on the application of risk management in automatically classifying tax refund applications.

In addition, based on the proposals and recommendations of Tax authorities at all levels, the Declaration Department has submitted to the General Department of Taxation to assign affiliated departments/units to complete relevant applications to better serve the processing of VAT refund applications of Tax authorities at all levels. Specifically: electronic application supporting invoice verification; Customs declaration application; eTax application in supporting taxpayers to submit VAT refund application electronically; e- invoice application to serve Tax authorities at all levels in exploiting and using e-invoice data to serve the invoice verification and VAT refund application processing.

To promptly grasp the problems in VAT refund work to provide close and timely direction, the General Department of Taxation organized many working groups on VAT refund to work directly at the local tax departments: Hanoi, Ho Chi Minh City, Ba Ria Vung Tau, Dong Nai, Binh Duong to understand problems, difficulties as well as recommendations and proposals of Tax authorities at all levels in the management of VAT refund. Thereby, having guidelines to speed up the settlement of VAT refunds.

​Focusing on processing VAT refund applications to support taxpayers

The key task in VAT refund in 2024 set by the Tax sector is to strictly control the VAT refund expenditure in 2024 to the right beneficiaries and in accordance with regulations; strengthening the application of information technology in VAT refund management, focusing on proactively reviewing enterprises that have trade in goods with enterprises with tax refund before receiving tax refund applications, thereby quickly identifying high-risk cases of VAT refund to classify VAT refund documents and speed up tax refund time, and focus on strictly controlling enterprises showing signs of high risk, VAT refund fraud. At the same time, continuing to gather policy problems regarding VAT refund, proposing amendments and supplements to remove the problems.

According to Deputy Director General of the General Department of Taxation Mai Son, in 2024, the General Department of Taxation will continue to strengthen VAT refund management, urgently remove tax refund problems, and promptly process tax refund applications for taxpayers to the right beneficiaries and in accordance with the regulations. In 2024, the Tax industry will also complete the IT technical infrastructure to serve tax management; continue to maintain, operate stably and effectively the electronic invoice system; urgently complete the development and deployment of a big data center for electronic invoices; accelerate the progress of building and applying Big Data and artificial intelligence (AI) technology to analyze and check electronic invoice data, analyze risks of invoices and tax refund to improve the efficiency of tax management, prevent and promptly handle violations.

Directing the implementation of tasks in 2024, Minister of Finance Ho Duc Phoc requests the General Department of Taxation to focus on handling VAT refunds to support taxpayers to have capital for production and business in accordance with the law. Strict management of tax refund issues not only protects executive officers but also helps increase budget revenue and avoid budget loss. At the same time, proactively inspecting regular tax refund applicants to help shorten tax refund time; applying risk management, proactively conducting inspections and pre-inspections to accelerate and support tax refund work right from the first months of the year.