What is the VAT refund procedure for foreigners on exit? Are there any difficulties in the invoicing process? To answer the above questions, let’s work with Lawyer X to find out the above problem through the article “VAT refund for foreigners on exit” below by Lawyer X to solve!
Legal grounds
- Circular 92/2019/TT-BTC
- Law on Value Added Tax 2008
- Circular 219/2013/TT-BTC
What is Value Added Tax?
Article 2 of the Law on Value Added Tax 2008 stipulates:
“Value added tax is a tax charged on the added value of goods; services arise in the process from production, circulation to consumption.”
Thus, the value-added tax is a tax applied only on the added value but not on the entire value of goods and services.
Value added tax is an indirect tax, which is added to the selling price of goods; services and is paid for by the consumer using the product. Although it is the consumer who pays the value-added tax; the person who directly fulfills the tax obligation to the State is the production unit; the business.
Guide sales businesses to refund VAT for foreigners on exit
According to the guidance at point c, Clause 3, Article 4a of Circular 72/2014/TT-BTC (added according to Clause 2, Article 1 of Circular 92/2019/TT-BTC)
“Article 4a. Value-added tax refund management system for foreigners and how to access
3. Access and exchange information through the System:
c) Immediately after receiving information about VAT refund sales enterprises transmitted to the System by tax authorities; the customs authority (General Department of Customs) sends the account and password to access the System to the enterprise via the email address already registered by the enterprise.”
According to the above guidelines; The General Department of Taxation has sent the list of VAT refund sellers to the General Department of Customs; for the General Department of Customs to grant an account to access the System for businesses.
To ensure that the information provided to the General Department of Customs on VAT refund sellers is accurate; and updated when there are changes, the General Department of Taxation recommends:
– Besides, the Department of Taxation shall notify the enterprise selling VAT refund goods of the information related to the recognition of the enterprise’s VAT refund sales which has been provided to the customs authority by the tax authority.
– Moreover, the Tax Department carries out the adjustment procedures; or terminates sales of VAT refunded goods according to the provisions of Point b, Clause 1, and Point b, Clause 2, Article 14 of Circular 72/2014/TT-BTC.
Instructions for VAT refund sales businesses About registration of digital signature information
Request the Tax Department to guide enterprises recognized to sell VAT refund goods to:
As soon as the notification of granting an account to access the System received by the customs authority; (General Department of Customs) and sent to the email address registered with the tax authority; enterprises access the System (link: tongcuc.customs.gov.vn\online public service\register for tax refund) to change password; and supplement digital signature information (if tax refund sales digital signature information has not registered with the tax authority); or adjust digital signature information (in case of change of tax refund digital signature information registered with tax authorities) via the issued account.
Guide sales businesses to refund VAT for foreigners on exit
– In case a VAT refund seller granted an account by the General Department of Customs to access the system:
Enterprises access the System to make VAT invoices cum tax refund declarations; digitally sign, transmit information to the System, and print and recover invoices for issuance to foreigners.
– In case a VAT refund seller has not granted an account by the General Department of Customs to access the system:
Enterprises make VAT invoices cum tax refund declarations on their invoicing software; according to the form specified in Appendix 3 issued with Circular 92/2019/TT-BTC; digitally sign and print recovery invoices for issuance to foreigners. At the same time, contact the General Department of Customs at the email address [email protected]; or phone number 0989.528.168 for account level support; or connect to the System as specified.
– In case the enterprise has not used digital signatures to issue invoices to buyers:
Enterprises shall make VAT invoices cum tax refund declarations according to the form specified in Appendix 3 issued together with Circular 92/2019/TT-BTC; signed and stamped for issuance to foreigners.
No later than the end of the first quarter of 2021 (expected time to complete the System to meet the requirements of integration, electronic information storage, and exchange between relevant units and organizations); VAT refund sales enterprises complete the registration of tax refund digital signature information with tax authorities or register digital signature information with the System via the provided account.
Related article
- Is it possible to issue an invoice for each payment in accordance with Vietnamese law?
- Application of electronic invoices and vouchers in tax management in Vietnam
- Can Vietnamese state agencies hire outside accounting services?
Frequently asked questions
Absolute tax: is a tax charged at a certain amount for each unit of exported goods, regardless of the export value.
Tax by percentage: this tax is calculated as a percentage (%) of the actual export value of each unit of exported goods
Mixed tax: is the case of applying a mixture of absolute tax and percentage tax.
Substitute Quantity Tax: A case in which an item is subject to tax at the same time as a percentage and an absolute amount. When calculating and paying tax, the higher tax amount is applied.
According to Article 3 of Circular 219/2013/TT-BTC, a value-added tax payer is an organization or individual that produces and trades in goods and services subject to value-added tax in Vietnam, regardless of business lines, forms, business organizations (hereinafter referred to as business establishments) and organizations and individuals that import goods or purchase services from abroad are subject to value added tax (hereinafter referred to as importers). password).
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