Brian Jeffrey
Challenges in VAT Refund Processes
Participants noted ongoing issues within the VAT refund process that continue to challenge businesses, potentially threatening the investment landscape’s stability, transparency, and fairness.
Nguyen Thi Cuc, head of the Vietnam Tax Consultancy Association and a former high-ranking official at the General Department of Taxation (GDT), referred to the complications faced by a wooden furniture exporter and a cassava trading business, highlighting several hurdles businesses and tax authorities encounter in tax refund procedures.
Cuc proposed breaking down business stages into smaller parts to better identify the accountability of different government agencies involved at each phase.
She expressed concerns about tax officers’ fears of unintentionally violating laws and stressed the need for protective regulations for them.
Nguyen Van Phung, ex-director of the Large Enterprise Taxation Department at GDT, pointed out that the multi-round inspection method adopted by tax authorities, aimed at safeguarding state revenue, is complicated and burdensome for companies.
He advised that ministries and local entities should provide clear guidelines for addressing infractions, suggesting that penalties be applied progressively rather than placing full blame on tax officials for all violations.
Phung also called for a clearer definition of tax officers’ responsibilities under the Value Added Tax and Tax Management laws, asserting that their duty is limited to document verification as mandated by existing laws.
Mai Xuan Thanh, head of GDT, raised concerns about the pervasive issue of fraudulent invoicing, stating that the use of e-invoices has improved transparency and insight for the GDT.
Referring to an instance involving Thu Duc House, Thanh remarked on the negative effects this incident has had on tax officer attitudes, noting that GDT has suggested clarifying tax officers’ roles in the draft amendments to the VAT law.
Nguyen Quynh Anh, vice chair of the Vietnam Bar Association, claimed that defining the responsibilities of tax officers could eliminate many obstacles in the tax refund procedure.
