Circular 92/2019/TT-BTC amending Circular 72/2014/TT-BTC

CIRCULAR

Amending and supplementing a number of articles of Circular No. 72/2014/TT-BTC of May 30, 2014, on refund of value-added tax for goods carried along by foreigners and overseas Vietnamese upon exit^[1]

Pursuant to the June 3, 2008 Law on Value-Added Tax; and June 19, 2013 Law Amending and Supplementing a Number of Articles of the Law on Value-Added Tax;

Pursuant to the April 6, 2016 Law Amending and Supplementing a Number of Articles of the Law on Value-Added Tax, the Law on Excise Tax and the Law on Tax Administration;

Pursuant to the June 13, 2019 Law on Tax Administration;

Pursuant to the Government’s Decree No. 209/2013/ND-CP of December 18, 2013, detailing and guiding a number of articles of the Law on Value-Added Tax;

Pursuant to the Government’s Decree No. 100/2016/ND-CP of July 1, 2016, detailing and guiding a number of articles of the Law Amending and Supplementing a Number of Articles of the Law on Value-Added Tax, the Law on Excise Tax and the Law on Tax Administration;

Pursuant to the Government’s Decree No. 146/2017/ND-CP of December 15, 2017, amending and supplementing a number of articles of the Government’s Decree No. 100/2016/ND-CP of July 1, 2016, and Decree No. 12/2015/ND-CP of February 12, 2015;

Pursuant to the Government’s Decree No. 87/2017/ND-CP of July 26, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the General Director of Customs,

The Minister of Finance promulgates the Circular amending and supplementing a number of articles of Circular No. 72/2014/TT-BTC of May 30, 2014, on refund of value-added tax for goods carried along by foreigners and overseas Vietnamese upon exit.

Article 1.To amend and supplement a number of articles of Circular No. 72/2014/TT-BTC of May 30, 2014, on refund of value-added tax (VAT) for goods carried along by foreigners and overseas Vietnamese upon exit

1. To amend and supplement Article 3 as follows:

“Article 3. Principles of performance of customs procedures, customs inspection and supervision, and tax administration

The physical inspection of goods, customs supervision and tax administration serving VAT refund for foreigners must comply with the Government’s Decree No. 08/2015/ND-CP of January 21, 2015, and Decree No. 59/2018/ND-CP of April 20, 2018, detailing, and providing measures to implement, the Customs Law regarding customs procedures and customs inspection, supervision and control; the Minister of Finance’s Circular No. 38/2015/TT-BTC of May 23, 2015, and Circular No. 39/2018/TT-BTC of April 20, 2018, on customs procedures; customs inspection and supervision; import and export duties and tax administration for imports and exports; and June 13, 2019 Law No. 38/2019/QH14 on Tax Administration, and its guiding documents.”

2. To add the following Article 4a:

“Article 4a. VAT refund management system for foreigners and access methods

1. The VAT refund management system for foreigners (below referred to as the system), which is built, managed and operated by the General Department of Customs, means a system for integration, storage and exchange of information related to VAT refund for foreigners among agencies, organizations and individuals as provided in this Circular.

2. Subjects that may access and exchange information via the system include:

a/ Customs offices;

b/ Tax offices;

c/ Commercial banks being VAT refund agents for foreigners;

d/ Enterprises recognized by tax offices as those selling goods eligible for VAT refund for foreigners.

3. Access to and exchange of information via the system:

a/ The subjects specified at Points a, c and d, Clause 2 of this Article may use accounts granted by customs offices for accessing the system.

b/ Tax offices shall provide information on enterprises selling goods eligible for VAT refund to the system under Clause 2, Article 9 of this Circular.

c/ Upon receiving information on enterprises selling goods eligible for VAT refund transmitted by tax offices to the system, customs offices (the General Department of Customs) shall send accounts and their passwords for accessing the system to enterprises via their registered emails.

d/ Enterprises selling goods eligible for VAT refund shall access the system and change their passwords.

dd/ The access to and exchange of information via the system among units and organizations must be carried out according to their competence and require digital signatures in accordance with the law on e-transactions.”

3.To amend and supplement Clauses 2, 6, 7 and 8, Article 6 as follows:

“2. Register the sale of goods at right addresses and take responsibility before law for the registration of the sale of goods eligible for VAT refund. In case the enterprise wishes to adjust or terminate the sale of goods eligible for VAT refund, it must comply with Article 14 of this Circular.

6. Based on foreigners’ information stated on their valid passports or entry or exit papers and purchased goods, issue invoice-cum-VAT refund declarations for goods specified in Article 11 of this Circular in the system or its software connected to the system, inserting all information stated in the form provided in Appendix 3 to this Circular and digital signatures, and transmit information on invoice-cum-VAT refund declarations as specified in Section II.1 of Appendix 10 to this Circular to customs offices, print invoices and hand them over to foreigners. Printed invoices are as valid as e-invoices.

In case an error occurs in the system, making the enterprise unable to access the system, make invoice-cum-VAT refund declarations according to the form provided in Appendix 3 to this Circular, then sign, seal and hand them over to foreigners. Printed documents serve as a basis for customs offices to examine and crosscheck declared information with goods of foreigners.

Right after the system resumes its normal operation, update information stated in printed invoices in the system as in the case of making invoice-cum-VAT refund declarations in the system. Numbers, codes and contents of invoice-cum-VAT refund declarations updated in the system must be consistent with those of printed invoices.

7. Print, distribute, manage and use electronic invoice-cum-VAT refund declarations under Clause 1, Article 18 of this Circular.

8. Be granted accounts for accessing and joining the system under Article 4a of this Circular.”

4. To amend and supplement Clause 9, Article 7 as follows:

“9. Be granted accounts for accessing and joining the system under Article 4a of this Circular.”

5. To amend Clauses 4, 5 and 7 of, and add Clause 7a to, Article 8 as follows:

“4. The General Department of Customs shall receive dossiers of request of commercial banks and submit them to the Ministry of Finance for selecting commercial banks to act as tax refund agents under Article 15 of this Circular, and receive dossiers of request of provincial-level People’s Committees and submit them to the Ministry of Finance for selecting international airports and seaports where VAT is refunded to foreigners, ensuring economic efficiency and meeting management requirements.

5. Update information in the system according to the criteria specified in Section II.2, Appendix 10 to this Circular.

7. Build, manage, operate, exploit and use the system under Article 4a of this Circular. In case an error occurs in the system, a customs office shall notify such on the website (www.customs.gov.vn) according to the form provided in Appendix 11 to this Circular to related units.

7a. Within the working day or on the next working day, a customs office shall notify in writing to the provincial-level Tax Department managing enterprises selling goods eligible for VAT refund in the following cases:

a/ An enterprise fails to make an invoice-cum-VAT refund declaration according to the form provided in Appendix 3 to this Circular in the system, or makes such declaration but fails to transmit an invoice-cum-VAT refund declaration to the system, except where an error occurs in the system as prescribed in Clause 6, Article 6 of this Circular;

b/ An enterprise makes an invoice-cum-VAT refund declaration with inadequate and incorrect information as specified in Appendix 3 to this Circular, or with inadequate, incorrect and inconsistent information compared to practically inspected goods;

c/ An enterprise violates this Circular’s provisions on VAT refund.”

6. To amend Clauses 2 and 8 of, and add Clause 2a to, Article 9 as follows:

“2. Receive dossiers and select enterprises selling goods eligible for VAT refund under Article 13 of this Circular. Publicize the list of enterprises selling goods eligible for VAT refund goods on websites of the General Department of Taxation and provincial-level Tax Departments that recognize enterprises selling goods eligible for VAT refund within the working day or at early office hours of the next working day after issuing documents recognizing enterprises selling goods eligible for VAT refund under Article 13 of this Circular, and at the same time insert digital signatures and transmit information on enterprises selling goods eligible for VAT refund to the system by electronic means under Section II.4, Appendix 10 to this Circular.

2a. Upon receiving information of customs offices on enterprises selling goods eligible for VAT refund under Clause 7, Article 8 of this Circular, tax offices shall examine and crosscheck such information and handle cases under regulations.

In case an enterprise fails to make an invoice-cum-VAT refund declaration according to the form provided in Appendix 3 to this Circular in the system, or makes such declaration without transmitting it to the system, a tax office shall, based on information provided by a customs office, make a violation minutes. In case the enterprise repeats the violation, the tax office shall impose an administrative sanction for a tax and invoice-related violation (if any), and at the same time, and handle the case under Clause 3, Article 14 of this Circular.

8. Join and get connected to the system under Article 4a of this Circular.”

7. To amend and supplement Clause 2, Article 10 as follows:

“2. Provincial-level State Treasury offices shall crosscheck and certify accounting reports on VAT refund with same-level tax offices on a monthly and annual basis under regulations.”

8. To amend and supplement Clauses 1 and 5, Article 11 as follows:

“1. Goods that are not on the list of goods banned from export; list of exports permitted by the Ministry of Trade and Industry, or list of exports subject to specialized management as provided in the Government’s Decree No. 69/2018/ND-CP of May 15, 2018, and documents guiding this Decree.

5. Goods bought from enterprises selling goods eligible for VAT refund which remain unused and intact and have invoice-cum-VAT refund declarations made within 60 (sixty) days prior to the date the foreigner leaves Vietnam.”

9. To amend and supplement Article 13 as follows:

“Article 13.Conditions, dossiers and procedures for selection of enterprises selling goods eligible for VAT refund

1. To be selected for selling goods eligible for VAT refund, an enterprise must satisfy the following conditions:

a/ Being established and operating in accordance with Vietnam’s law, and registering to sell goods eligible for VAT refund under Article 11 in this Circular at one of the following places:

- Its head office;

- Its branches or stores;

- Its sale agents;

b/ Implementing accounting, invoice and document regimes in accordance with law; declaring and paying VAT by credit method.

c/ Committing to joining the system under Article 4a of this Circular.

2. A dossier of registration of an enterprise selling goods eligible for VAT refund must comprise:

a/ A written registration for selling goods eligible for VAT refund, made according to the form provided in Appendix 1 to this Circular;

b/ A sale agency contract signed between the registering enterprise and its sale agent (for the enterprise’s agents): 1 copy affixed with the enterprise’s “true copy” seal.

3. Procedures for enterprise selection:

a/ An enterprise shall send a dossier of registration to its direct managing tax office. In case the enterprise registers for selling goods eligible for VAT refund at its branches or stores located in provinces or cities different from its head office’s location, such branches or stores shall send dossiers of registration to tax offices directly managing them;

b/ The tax office directly managing the enterprise shall receive, check and process the dossier as follows:

- If the dossier is incomplete, it shall, within 3 (three) working days after receiving the dossier, notify such in writing to the enterprise for completion;

- If the dossier fails to satisfy the prescribed conditions, it shall, within 7 (seven) working days after receiving the dossier, notify such in writing to the enterprise;

- If the dossier is complete and satisfies the prescribed conditions, the provincial-level Tax Department where the enterprise’s head office is located shall, within 7 (seven) working days after receiving the complete dossier under regulations, issue a recognition document according to the form provided in Appendix 2 to this Circular, and send it to the enterprise (in case the provincial-level Tax Department directly manages the enterprise), or the Tax Branch shall send a dossier of request to the provincial-level Tax Department where the enterprise’s head office is located for issuing a document on recognition of the enterprise selling goods eligible for VAT refund (in case the Tax Branch directly manages the enterprise). Within 5 working days after receiving the Tax Branch’s request, the provincial-level Tax Department where the enterprise’s head office is located shall issue a document on recognition of the enterprise selling goods eligible for VAT refund according to form provided in Appendix 2 to this Circular, and send it to the enterprise.”

10. To amend and supplement Clause 3, Article 14 as follows:

“3. If an enterprise breaches regulations on VAT refund, provincial-level Tax Departments shall, based on violation act and severity, handle the violation under regulations. In case the enterprise is booked for the second time for failure to make an invoice-cum-VAT refund declaration according to the form provided in Appendix 3 to this Circular or for the fact that it makes such declaration but fails to transmit an invoice-cum-VAT refund declaration to the system, in addition to handling the administrative violation (if any), the provincial-level Tax Department shall consider and decide to terminate the sale of goods eligible for VAT refund and transmit information to the system by electronic means, and at the same time post on its website and website of the General Department of Taxation.”

11. To amend and supplement Clauses 2 and 3, Article 15 as follows:

“2. Procedures for selection:

A commercial bank shall submit to the Ministry of Finance (the General Department of Customs) the following papers:

a/ A written registration for acting as a VAT refund agent for foreigners, containing information on its digital signature, including identification numbers of digital certificates and name of the digital certification service provider, name of the digital certificate holder, effective date, expiration date, and public key;

b/ A document issued by the State Bank to permit the commercial bank to conduct foreign exchange operation and provide foreign exchange services: 1 copy affixed with its “true copy” seal.

3. The General Department of Customs shall receive and examine the dossier sent by the commercial bank.

a/ If the dossier is incomplete, it shall, within 3 (three) working days after receiving the dossier, notify such in writing to the commercial bank for supplementation.

b/ If the dossier fails to satisfy the prescribed conditions, it shall, within 5 (five) working days after receiving the dossiers, notify such in writing to the commercial bank;

c/ If the dossier is complete and satisfies the prescribed conditions, within 7 (seven) working days after receiving the dossier, the Ministry of Finance (the General Department of Customs) shall notify such in writing to the commercial bank for acting as a VAT refund agent, and grant an account for accessing the system.”

12. To amend and supplement Clause 1, Article 18 as follows:

“1. Enterprises selling goods eligible for VAT refund shall make and use invoice-cum-VAT refund declarations under Clause 6, Article 6 of this Circular.

The printing, issuance, management and use of invoice-cum-VAT refund declarations must comply with regulations on invoices and guiding documents.”

13. To amend and supplement Clause 2, Article 19 as follows:

“2. Customs offices shall carry out physical inspection of goods at invoice-cum-VAT refund declarations and goods checking counters as follows:

a/ To crosscheck and determine consistency of information on passports or entry or exit papers and information on invoice-cum-VAT refund declarations; information on invoice-cum-VAT refund declarations inserted by selling enterprises to the system and provisions on goods eligible for tax refund  of Article 11 of this Circular;

b/ To carry out physical inspection of goods for those subject to physical inspection based on the principle of risk management.

In case produced goods are not true to goods descriptions in invoice-cum-VAT refund declarations as specified in Appendix 10 to this Circular or invoice-cum-VAT refund declarations provide incomplete information under regulations or such declarations are not available in the system (except where an error occurs in the system), customs offices shall exchange and verify information with selling enterprises. In case exchanged information is different from information on goods, invoices and passports, customs offices shall refuse to refund tax;

c/ To write inspection results, affix seals of approval or refusal of VAT refund. In case of approval of tax refund, customs offices shall determine VAT refund-eligible goods items, and calculate actual VAT amounts to be refunded to foreigners under Article 12 of this Circular;

d/ To update information under Section II.2 of Appendix 10 to this Circular in the system and insert digital signatures.

If an error occurs in the system, customs offices shall sign and affix seals of approval or refusal of tax refund on invoice-cum-VAT refund declarations.”

14. To amend and supplement Clause 2, Article 20 as follows:

“2. Commercial banks shall:

a/ Check boarding passes and invoice-cum-VAT refund declarations; check information on people on exit, goods, custom offices’ certification of approval of tax refund and to-be-refunded VAT amounts.

If information on the name of a passenger on his/her boarding pass is not consistent with information on his/her invoice-cum-VAT refund declaration that has been checked and verified by a customs office, the commercial bank shall exchange and verify information with the customs office. In case exchanged information is different from information on the boarding pass, the commercial bank shall refuse to refund VAT and notify such via the system to the customs office;

b/ Update information on numbers and dates of flights or voyages of foreigners and other information as specified in Section II.3 of Appendix 10 to this Circular to the system or on software of commercial banks connected with the system, insert digital signatures and transmit them to customs offices;

c/ Refund VAT in cash or via international cards of foreigners according to actual VAT amounts refundable to foreigners that are calculated by customs offices and written in invoice-cum-VAT refund declarations.

In case of VAT refund via international cards of foreigners, commercial banks shall crosscheck information (on names and card numbers) of foreigners that have registered to receive tax refund amounts with information on their cards produced for tax refund.

In case an error occurs in the system, commercial banks shall, based on invoice-cum-VAT refund declarations and customs offices’ certifications under Point d, Clause 2, Article 19 of this Circular, refund VAT to foreigners under Clause 2 of this Article, and at the same time sign and affix seals of certification of tax refund to foreigners on invoice-cum-VAT refund declarations.

Right after the system resumes its normal operation, commercial banks shall update information on invoice-cum-VAT refund declarations in the system or software of commercial banks connected with the system, insert digital signatures and transmit them to customs offices;

d/ Return boarding passes to foreigners;

dd/ Archive tax refund dossiers for both e-documents and paper documents in accordance with law.”

15. To amend and supplement Article 21 as follows:

“Article 21. Payment and refund of advanced VAT amounts, VAT refund service charges

1. No more than once every 5 (five) working days, a commercial bank shall, based on practical conditions, make a dossier of request for payment and refund of advanced VAT amounts and VAT refund service charges in the system, and send it to the provincial-level Tax Department of the locality where the commercial bank registers and declares VAT and Customs Department of the locality where the commercial bank carries out tax refund. Such a dossier must comprise:

a/ A written request for payment of advanced VAT amounts and VAT refund service charges of the payment period, made according to the form provided in Appendix 5 to this Circular;

b/ A list of payment requests, made according to the form provided in Appendix 6 to this Circular.

2. Within 2 (two) working days after receiving a commercial bank’s payment request, based on tax refund certification information electronically provided by a customs office, the provincial-level Tax Department of the locality where the commercial bank registers and declares VAT shall issue a payment decision according to the form provided in Appendix 7 to this Circular and at the same time make a state budget revenue refund order according to the form provided in the Minister of Finance’s Circular No. 77/2017/TT-BTC of July 28, 2017, guiding the accounting of the state budget and state treasury operations, in case conditions for tax refund are fully satisfied, and send it to the commercial bank and the same-level State Treasury office  to transfer money to the commercial bank.

3. Based on a payment decision and a refund order issued by the provincial-level Tax Department, the State Treasury office shall transfer money to the commercial bank under the Minister of Finance’s Circular No. 99/2016/TT-BTC of June 29, 2016, and Circular No. 31/2017/TT-BTC of April 18, 2017, guiding the management of value-added tax refund.

4. The accounting and circulation of documents must comply with Article 19 of the Minister of Finance’s Circular No. 99/2016/TT-BTC of June 29, 2016, which was amended and supplemented under Circular No. 31/2017/TT-BTC of April 18, 2017, and under Clause 3, Article 59 of Circular No. 156/2013/TT-BTC of November 6, 2013.”

16. To amend and supplement Clauses 2, 3 and 4, Article 23 as follows:

“2. No later than the 20^thof the month following the quarter in which the tax liability arises, an enterprise selling goods eligible for VAT refund shall make a report to the managing tax office on sale of goods to foreigners according to the form provided in Appendix 9 to this Circular and regulations of the General Director of Taxation.

3. No later than the 10^thday of the following month, provincial-level Tax Departments of localities where commercial banks and enterprises selling goods eligible for VAT refund register and declare VAT shall assume the prime responsibility for, and coordinate with the State Treasury offices in, crosschecking VAT refund amounts under Clause 2, Article 10 of this Circular; and coordinate with provincial-level Customs Departments in reviewing and crosschecking VAT amounts declared or paid by enterprises selling goods eligible for VAT refund, VAT amounts and VAT refund service charges paid to commercial banks to ensure data consistency. In case data are inconsistent, the parties shall coordinate with one another in identifying reasons and ensuring that VAT refund for foreigners is carried out in accordance with law.

4. Provincial-level Tax Departments of localities where commercial banks register and declare VAT shall summarize and report results of payment and refund of advanced VAT and VAT refund service charges to commercial banks. Provincial-level Tax Departments shall report results of sale by enterprises of goods eligible for VAT refund to foreigners in their localities to the General Department of Taxation under regulations of the General Department of Taxation.”

17. To amend and supplement Appendices as follows:

a/ To replace Appendices 1, 2, 3, 7 and 8 to Circular No. 72/2014/TT-BTC with Appendices 1, 2, 3, 7 and 8 to this Circular, respectively.

d/ To add Appendices 10 and 11 to this Circular.

Article 2.Provisions to be annulled

1. To annul Clause 5 of Article 10; Clause 4 of Article 15, and Clause 5 of Article 18 of Circular No. 72/2014/TT-BTC.

2. To annul Appendix 4 to Circular No. 72/2014/TT-BTC.

Article 3.Transitional provisions

1. Enterprises that are recognized by tax offices as those selling goods eligible for VAT refund to foreigners before the effective date of this Circular may continue operating and shall add information on their digital signatures according to the form provided in Appendix 8 to this Circular (in case their software is connected with the system) or access the system and change passwords (in case of direct access to the system for invoice printing).

2. By June 2020 at the latest, the General Department of Taxation shall, based on information on enterprises selling goods eligible for VAT refund provided by tax offices to the system, send information on accounts and passwords for accessing the system to enterprises via their registered emails.

3. When the Decree guiding e-invoices under Law No. 38/2019/QH14 on Tax Administration takes effect, invoice-cum-VAT refund declarations must comply with such Decree and guiding documents.

Article 4.Effect

1. This Circular takes effect on July 1, 2020.

2. If the documents referred to in this Circular are amended, supplemented or replaced in the course of implementation of this Circular, the amending, supplementing or replacing documents prevail.-

For the Minister of Finance
Deputy Minister
VU THI MAI

* The appendices to this Circular are not translated.