THE MINISTRY OF FINANCE
Circular No. 150/2013/TT-BTC of October 29, 2013, guiding the setting up and management of and tax refund from the value-added tax (VAT) refund fund
Pursuant to November 29, 2006 Law No. 78/2006/QH11 on Tax Administration; November 20, 2012 Law No. 21/2012/QH12 Amending and Supplementing a Number of Articles of the Law on Tax Administration and guiding documents;
Pursuant to June 3, 2008 Law No. 13/2008/QH12 on Value-Added Tax; June 19, 2013 Law No. 31/2013/QH13 Amending and Supplementing a Number of Articles of the Value-Added Tax Law and guiding documents;
Pursuant to December 16, 2002 Law No. 01/2002/QH11 on the State Budget and guiding documents;
Pursuant to the Government’s Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
At the proposal of the directors of the Legal Department and the Department of State Budget and the general directors of the General Department of Taxation and the State Treasury;
The Ministry of Finance promulgates the Circular guiding the setting up, and management of and tax refund from the VAT refund fund.
Section I. GENERAL PROVISIONS
Article 1.Scope of regulation
This Circular provides the setting up and management of the VAT refund fund (below referred to as the tax refund fund) and the refund of VAT to eligible subjects in accordance with law.
Article 2.Subjects of application
The General Department of Taxation, the Department of State Budget, the State Treasury, the tax departments of provinces and centrally run cities (below referred to as the tax departments and the provincial-level State Treasury offices shall, within their functions and assigned tasks and in accordance with this Circular, estimate, manage and refund the tax from tax refund fund for eligible subjects under competent agencies’ decisions.
Article 3.Principles of setting up and managing the tax refund fund
The tax refund fund is set up with sources of collected VAT on import goods. The tax refund fund may open an account for centralized management at the State Treasury with the general director of the General Department of Taxation as the account holder under the Minister of Finance’s authorization.
Section II.SPECIFIC PROVISIONS
Article 4.Estimated funding sources of the tax refund fund
1. Estimated funding sources of the tax refund fund (below referred to as the tax refund fund estimates) will be made together with annual state budget estimates in accordance with the State Budget Law and guiding documents.
2. In the course of implementation, if refundable VAT amounts exceed the estimates, the Department of State Budget shall assume the prime responsibility for, and coordinate with the General Department of Taxation in, submitting them to the Minister of Finance for consideration and settlement in accordance with law.
Article 5.Management of funding sources of the tax refund fund
1. Based on the approved tax refund fund estimates, the Department of State Budget shall notify to the General Department of Taxation to manage and monitor the expenditures of the tax refund fund at the State Treasury.
2. Based on the approved tax refund fund estimates and the VAT refund estimates collected and refunded, VAT amounts of the previous quarter and year of provinces and centrally run cities, the General Department of Taxation shall allocate and notify tax refund fund use limits for the whole year (divided to quarters) to the provincial-level tax departments and State Treasury offices. Based on tax refund amounts paid by the General Department of Taxation in the previous quarter and year, the General Department of Taxation shall determine and allocate the tax refund fund use limits for performing its tasks; and notify the State Treasury of the tax refund fund use limits for the tax departments and the General Department of Taxation.
The tax refund fund use limits are allocated and notified in accordance with the above provisions together with the allocation of annual budget revenue estimates.
3. The tax departments shall collaborate with the same-level State Treasury offices in summarizing and making monthly, quarterly, biannual and annual reports on the implementation of the tax refund fund use limits and the results of VAT refund to the General Department of Taxation for summarization and reporting to the Minister of Finance and related units for coordinated management.
The General Department of Taxation shall guide the report form and the time limit for reporting the implementation of the tax refund fund use limits and the results of VAT refund.
Article 6.Tax refund
1. Tax refund is considered and decided in accordance with the Law on Value-Added Tax and the Law on Tax Administration and guiding documents.
2. In the course of implementation, tax agencies shall control and compare tax refunds with the allocated tax refund fund use limits. In case the refundable tax amounts exceed the limits allocated to localities, the tax departments shall report to the General Department of Taxation for consideration and settlement.
3. The General Department of Taxation shall assume the prime responsibility for, and coordinate with the Department of State Budget in, allocating in advance the tax refund fund use limits for the next quarter to tax agencies with deficient limits. In case limits deficient fall in the last quarter of the year, limits may be regulated from tax offices with limit surplus to those with limit deficit. In case the approved tax refund fund estimates are not sufficient for VAT refund, VAT refund must be paid under Clause 2, Article 2 of this Circular.
Article 7.Expenditures of the tax refund fund
The tax refund fund is used to refund VAT to taxpayers who are eligible for VAT refund in accordance with the Law on Value-Added Tax and guiding documents.
In case taxpayers are refunded overpaid VAT amounts as under Clause 13, Article 1 of the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration, central and local budget revenues will be reduced in proportion to the percentage of revenues divided for each budget level under regulations without using the tax refund fund.
Article 8.Tax refund process
1. In case tax refund is made by the General Department of Taxation
Upon receiving the VAT refund decisions or decisions on tax refund and state budget revenue and attached dossiers sent by the General Department of Taxation as prescribed in clause 2, Article 9 of this Circular, the State Treasury shall receive dossiers, control expenditures and carry out procedures for VAT refund for eligible subjects within the tax refund fund use limits that have been notified to the General Department of Taxation.
2. In case tax refund is made by the tax departments
Upon receiving the VAT refund decisions or decisions on tax refund and state budget revenue and attached dossiers sent by the tax departments as prescribed in clause 2, Article 9 of this Circular, the provincial-level State Treasury offices shall receive dossiers, control expenditures and carry out procedures for VAT refund for eligible subjects within the tax refund fund use limits that have been notified to the tax departments.
3. In case refund amounts to taxpayers exceed limits, the State Treasury offices shall notify such to same-level tax offices for implementation under Clauses 2 and 3, Article 6 of this Circular.
4. Within the first 15 days of the month, quarter, first half and a year, the provincial-level State Treasury offices shall summarize and report VAT refunds in their localities and send to same-level tax departments for summarization and reporting to the General Department of Taxation as prescribed in Clause 3, Article 5 of this Circular and the State Treasury for monitoring and reviewing.
Article 9.Control of VAT refund at state treasury offices
1. The State Treasury offices receiving VAT refund decisions and attached dossiers shall:
a/ Control the adequacy and compliance with law (such as the deciding competence and validity) of dossiers requesting the State Treasury offices to refund VAT;
b/ Compare tax refund amounts with the assigned tax refund fund use limits, and control tax refunds by tax offices;
c/ Refund tax within the limits notified to tax offices.
2. A dossier requesting a State Treasury office to refund VAT (below referred to as dossier) comprises:
a/ A tax refund decision or a decision on tax refund and state budget revenue clearing;
b/ An order for refunding the state budget revenue;
c/ Documents notifying those eligible for tax refund by the tax office (if any);
d/ Other tax refund-related documents.
3. VAT refund control process
A State Treasury office shall, base itself on the VAT refund decision and attached dossier sent by the tax office to classify and control VAT refund as follows:
a/ For case of tax refund first, inspection later:
- If the dossier is complete and compliant with law as determined through inspection, the State Treasury office shall refund tax to eligible subjects within the notified limits of the tax office.
- If the dossier is incomplete as determined through inspections, the State Treasury office shall request the tax office to supplement the dossier.
- If signs of incompliance with law are detected through inspection, the State Treasury office shall suspend the tax refund and concurrently notify such to the tax office for transfer of the dossier to be subject to tax refund first, inspection later and remedy the violation (if any).
b/ For case of inspection first, tax refund later:
- If the dossier is complete and compliant with law as determined through inspection, the State Treasury office shall refund tax to eligible subjects within the notified limits of the tax office.
- If the dossier is incomplete as determined through inspections, the State Treasury office shall request the tax office to supplement the dossier.
- If signs of incompliance with law are detected through inspection, the State Treasury office shall suspend the tax refund and concurrently notify such to the tax office for further inspection and remedy the violation (if any).
4. The State Treasury shall monitor the VAT refund within the notified limits. In case the tax office requests VAT refund in excess of limits, the State Treasury office shall suspend the refund and concurrently notify such to the same-level tax office for timely handling.
5. Monthly, quarterly or annually, the State Treasury office shall coordinate with the tax office in examining and comparing dossiers and limits to detect VAT refund decisions and refunds in contravention of regulations and the implementation for timely remedy.
Article 10.Responsibilities of the General Department of Taxation
1. To coordinate with the State Treasury in formulating and submitting the tax refund fund estimates to the Minister of Finance for approval; to provide additional funding sources to the tax refund fund as prescribed in Clause 2, Article 4 of this Circular.
2. To guide tax departments to make VAT refund estimates.
3. To allocate and notify the tax refund fund use limits of the year to the tax departments and tax refund tasks the General Department of Taxation.
4. To decide on advance allocation of the tax refund fund use limit for the quarter for one tax department, regulate limits among tax departments when tax refund amounts exceed the year’s limit.
5. To monitor the use of tax refund limits and VAT refunds in their localities.
6. To coordinate with the State Treasury office in controlling expenditures for VAT refund and regularly examining dossiers at tax offices.
7. To make monthly, quarterly, biannual and annual summarization and reports on implementation of tax refund fund use limits and results of VAT refund (certified by the State Treasury) to the Ministry of Finance and concurrently to the Department of State Budget.
8. To review and assess funding estimates for the tax refund fund and make final settlements with the state budget.
Article 11.Responsibilities of the State Treasury
1. To open the tax refund fund account under Article 3 of this Circular.
2. To monitor and control VAT refunds under this Circular.
3. To make VAT refunds to eligible subjects under regulations.
4. To coordinate with tax offices in regularly examining dossiers.
5. To certify VAT amounts actually refunded to eligible subjects in each province or city.
Article 12.Responsibilities of the Department of State Budget
1. To coordinate with the General Department of Taxation in making tax refund fund estimates to be included in the annual state budget.
2. To coordinate with the General Department of Taxation in regulating the approved tax refund fund estimates; in case of estimates are insufficient, to coordinate with the General Department of Taxation in submitting them to the Minister of Finance for consideration and settlement in accordance with law.
Section III.Organization of implementation
Article 13.Effect
1. This Circular takes effect on January 1, 2014.
2. To annul the Ministry of Finance’s Decision No. 1632/1998/QD-BTC of November 17, 1998, promulgating of the Regulation on setting up, management and use of the VAT refund fund, and Decision No. 96/2002/QD-BTC of June 18, 2002, amending and supplementing a number of provision of the Regulation on setting up, management and use of the VAT refund fund, promulgated under the Minister of Finance’s Decision No. 1632/1998/QD-BTC of November 17, 1998.
Article 14.Implementation responsibility
Heads of tax offices, the State Treasury, the Department of State Budget and related organizations and individuals shall guide and organize the implementation of this Circular.
Any problems arising the course of implementation should be promptly reported to the Ministry of Finance for study and settlement.-
For the Minister of Finance
Deputy Minister
DO HOANG ANH TUAN
Vietnamese
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