Vietnam’s Efforts to Improve VAT Refund Process and Boost Business Development

• Vietnam is facing issues with delayed VAT refunds, causing problems for businesses.
• The delayed refunds have affected industries such as wood processing, rubber trading, and foreign direct investment.
• The State Audit has reported stagnant inspection and verification of VAT refund applications in some localities.
• The General Department of Taxation has refunded only 39% of the estimated VAT refunds in the first 7 months of 2023.
• In HCMC alone, there were 4,916 tax refund decisions issued, but only 66.4% were resolved on time.
• The National Assembly and the Government have implemented policies to address the issue, including urgent inspections and evaluations.
• The General Department of Taxation has classified nearly 80% of VAT refund applications as subject to refund first, inspection later.
• The tax industry has issued directive documents to limit refund risks, but these measures are demanding for businesses.
• The Ministry of Finance is proposing amendments to the VAT Law to address tax refund issues.

Source: en.sggp.org.vn

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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