trực tiếp bóng đá k+Shall VAT be refunded when a regular enterprise is converted into an export processing enterprise in Vietnam?
Shall VAT be refunded when a regular enterprise is converted into an export processing enterprise in Vietnam?
Firstly, trực tiếp bóng đá k+ reorganization of enterprises is defined in Clause 31, Article 4 of trực tiếp bóng đá k+Law on Enterprise 2020as follows:
31. Reorganization of an enterprise is trực tiếp bóng đá k+ division, separation, consolidation, merger, or conversion of trực tiếp bóng đá k+ type of enterprise.
Additionally, according to trực tiếp bóng đá k+ provisions in Clause 2, Article 37 of trực tiếp bóng đá k+Law on Enterprise 2020as follows:
Enterprise Name
1. trực tiếp bóng đá k+ Vietnamese name of an enterprise includes two elements in trực tiếp bóng đá k+ following order:
a) Type of enterprise;
b) Proper name.
2. trực tiếp bóng đá k+ type of enterprise is written as “limited liability company” or “LLC” for limited liability companies; written as “joint stock company” or “JSC” for joint-stock companies; written as “partnership” or “partnership company” for partnerships; written as “private enterprise”, “PTE” or “PE” for private enterprises.
3. trực tiếp bóng đá k+ proper name is written using Vietnamese alphabet letters, trực tiếp bóng đá k+ letters F, J, Z, W, numerals, and symbols.
4. trực tiếp bóng đá k+ enterprise's name must be displayed at trực tiếp bóng đá k+ head office, branches, representative offices, and business locations of trực tiếp bóng đá k+ enterprise. trực tiếp bóng đá k+ enterprise's name must be printed or written on transaction papers, dossiers, documents, and publications issued by trực tiếp bóng đá k+ enterprise.
5. Based on trực tiếp bóng đá k+ provisions of this Article and Articles 38, 39, and 41 of this Law, trực tiếp bóng đá k+ business registration agency has trực tiếp bóng đá k+ right to refuse trực tiếp bóng đá k+ proposed registered name of trực tiếp bóng đá k+ enterprise.
Additionally, under trực tiếp bóng đá k+ following articles:
“Article 202 of trực tiếp bóng đá k+Law on Enterprise 2020. Conversion of a limited liability company into a joint-stock company”;
“Article 203 of trực tiếp bóng đá k+Law on Enterprise 2020. Conversion of a joint-stock company into a one-member limited liability company;”
“Article 204 of trực tiếp bóng đá k+Law on Enterprise 2020. Conversion of a joint-stock company into a multi-member limited liability company”;
“Article 205 of trực tiếp bóng đá k+Law on Enterprise 2020. Conversion of a private enterprise into a limited liability company, joint-stock company, or partnership”.
Furthermore, based on Clause 5, Article 18 ofCircular 219/2013/TT-BTC, as amended by Clause 3, Article 1 ofCircular 130/2016/TT-BTC, as follows:
Subjects and cases entitled to VAT refund
...
5. Business establishments paying VAT by trực tiếp bóng đá k+ deduction method are entitled to VAT refunds when changing ownership, converting enterprises, merging, consolidating, dividing, separating, dissolving, or going bankrupt with excess VAT paid or input VAT not yet fully deducted.
Business establishments in trực tiếp bóng đá k+ investment stage not yet entering production and business activities but must dissolve, go bankrupt, or cease activities with no output VAT from trực tiếp bóng đá k+ main business activities according to trực tiếp bóng đá k+ investment project are not required to adjust trực tiếp bóng đá k+ declared, deducted, or refunded VAT. Business establishments must notify trực tiếp bóng đá k+ directly managing tax agency about trực tiếp bóng đá k+ dissolution, bankruptcy, or termination of activities according to regulations.
In cases where trực tiếp bóng đá k+ business establishment, after completing all procedures according to trực tiếp bóng đá k+ law on dissolution or bankruptcy, must handle trực tiếp bóng đá k+ refunded VAT according to trực tiếp bóng đá k+ law on dissolution, bankruptcy, and tax management; for unrefunded VAT not being refunded.
In cases where trực tiếp bóng đá k+ business establishment ceases operations and does not incur output VAT from trực tiếp bóng đá k+ main business activities, trực tiếp bóng đá k+ refunded tax must be paid back to trực tiếp bóng đá k+ state budget. If there is a sale of taxable assets, there is no need to adjust trực tiếp bóng đá k+ corresponding input VAT of trực tiếp bóng đá k+ sold assets.
...
According to trực tiếp bóng đá k+ above regulations, in trực tiếp bóng đá k+ case of a company transitioning from a regular enterprise to an Export Processing Enterprise, it is not classified under trực tiếp bóng đá k+ cases of converting trực tiếp bóng đá k+ type of enterprise, and therefore is not eligible for VAT refunds as per regulations.
Therefore,VAT will not be refunded when a regular enterprise convert into an export processing enterprise.
Shall VAT be refunded when a regular enterprise is converted into an export processing enterprise in Vietnam?(Image from trực tiếp bóng đá k+ Internet)
What are trực tiếp bóng đá k+ 3 levels of risk when tax authorities inspect and audit after tax refund in Vietnam?
Based on Article 18 ofCircular 31/2021/TT-BTCregulating trực tiếp bóng đá k+ application of risk management in tax refund as follows:
trực tiếp bóng đá k+ tax authority classifies tax refund dossiers according to trực tiếp bóng đá k+ provisions of trực tiếp bóng đá k+ Tax Management Law, relevant legal documents, or current regulations. For classifying tax refund dossiers by risk, based on trực tiếp bóng đá k+ risk classification results of trực tiếp bóng đá k+ tax refund dossier in Article 13 of this Circular, trực tiếp bóng đá k+ tax authority applies suitable measures in resolving, handling tax refund dossiers as follows:
- Classifying tax refund dossier resolution
+ Tax refund dossiers with high tax risks: Conduct inspection before refunding
Within 12 consecutive months from trực tiếp bóng đá k+ start of trực tiếp bóng đá k+ fiscal year, if trực tiếp bóng đá k+ taxpayer’s tax refund dossier continuously assessed as high risk:
++ If trực tiếp bóng đá k+ current risk assessment differs from trực tiếp bóng đá k+ immediately previous assessment in total risk scores or scores on each criterion, index: trực tiếp bóng đá k+ tax refund dossier falls under trực tiếp bóng đá k+ category of pre-refund inspection.
++ If trực tiếp bóng đá k+ current risk assessment is trực tiếp bóng đá k+ same as trực tiếp bóng đá k+ immediately previous assessment in total scores and scores for each criterion, index; or trực tiếp bóng đá k+ current tax refund dossier compared to trực tiếp bóng đá k+ immediately previous assessment has lower risk scores on each index leading to a correspondingly lower total risk:
- trực tiếp bóng đá k+ result of checking trực tiếp bóng đá k+ immediately preceding tax refund dossier or post-refund inspection, audit does not find any wrong declarations leading to insufficient tax payments or increased refund amounts, trực tiếp bóng đá k+ next tax refund dossier does not fall under pre-refund inspection.
- If checking trực tiếp bóng đá k+ immediately preceding tax refund dossier or post-refund inspection, audit discovers wrong declarations leading to insufficient tax payments or increased refund amounts, trực tiếp bóng đá k+ next tax refund dossier falls under pre-refund inspection.
+ Tax refund dossiers with medium and low tax risks: Refund first, inspect later.
+ In case, after applying trực tiếp bóng đá k+ tax refund dossier classification, during trực tiếp bóng đá k+ dossier resolution process, trực tiếp bóng đá k+ tax authority discovers trực tiếp bóng đá k+ taxpayer shows signs of violating tax laws, customs laws, or if trực tiếp bóng đá k+ taxpayer does not explain, supplement trực tiếp bóng đá k+ tax refund dossier or explains, supplements but cannot prove trực tiếp bóng đá k+ declared tax is correct, trực tiếp bóng đá k+ tax authority changes trực tiếp bóng đá k+ application of trực tiếp bóng đá k+ classification form of trực tiếp bóng đá k+ taxpayer’s tax refund dossier that is in trực tiếp bóng đá k+ category of refund first, check later to trực tiếp bóng đá k+ category of check before refund; approval for classification changes must be updated into trực tiếp bóng đá k+ business information system.
- Post-refund inspection, audit
+ trực tiếp bóng đá k+ order of post-refund inspection, audit is arranged by trực tiếp bóng đá k+ tax authority based on trực tiếp bóng đá k+ total risk scores from high to low within five (5) years from trực tiếp bóng đá k+ date of trực tiếp bóng đá k+ tax refund decision:
++ High risk (for tax refund dossiers not under trực tiếp bóng đá k+ pre-refund inspection category specified at point a clause 1 of this Article): Conduct inspection, audit within one (1) year from trực tiếp bóng đá k+ tax refund decision date;
++ Medium risk: Conduct inspection, audit within three (3) years from trực tiếp bóng đá k+ tax refund decision date;
+ Low risk: Conduct inspection, audit within five (5) years from trực tiếp bóng đá k+ tax refund decision date;
+ Based on trực tiếp bóng đá k+ actual situation, trực tiếp bóng đá k+ tax authority may conduct post-refund inspections, audits earlier than trực tiếp bóng đá k+ stated timeframe.
+ trực tiếp bóng đá k+ General Department of Taxation specifies post-refund inspection, audit; combined with tax law compliance inspection, audit as prescribed.
Thus, trực tiếp bóng đá k+ 3 levels of risk when tax authorities inspect, audit after tax refund include:
- High risk
- Medium risk
- Low risk
What are the4 contents of tax administrationwhen tax authorities inspect and audit after tax refund in Vietnam?
Based on Article 23 ofCircular 31/2021/TT-BTCregulated as follows:
Inspection, evaluation of risk management application in tax administration
1. Conduct inspection, evaluation of trực tiếp bóng đá k+ following contents:
a) Quality of organizing trực tiếp bóng đá k+ implementation of risk management measures and technical operations;
b) Effectiveness, efficiency of applying risk management in tax administration operations;
c) Organization and results of implementing inspection, audit decisions, or other measures based on risk management application;
d) Evaluate trực tiếp bóng đá k+ effectiveness of criteria, compliance evaluation indicators with tax laws and classification of taxpayers’ risk levels.
2. Inspection, evaluation measures
a) Summarize information, reports from tax authorities at all levels, departments, units under trực tiếp bóng đá k+ General Department of Taxation in implementing, applying risk management;
b) Collect, analyze, summarize information on trực tiếp bóng đá k+ results of applying risk management in tax administration operations;
c) Organize work groups to inspect implementation and risk management application at tax authorities at all levels.
3. trực tiếp bóng đá k+ Director General of trực tiếp bóng đá k+ General Department of Taxation decentralizes responsibility to risk management units to inspect, evaluate trực tiếp bóng đá k+ implementation, application of risk management in tax administration as prescribed in Clause 2 of this Article. Evaluation is conducted regularly; periodic reports (semi-annually and annually) and according to specific operational requirements.
Thus,trực tiếp bóng đá k+ 4 contents when tax authorities inspect and evaluate risk management in tax administration include:
[1]Quality of organizing trực tiếp bóng đá k+ implementation of risk management measures and technical operations;
[2]Effectiveness, efficiency of applying risk management in tax administration operations;
[3]Organization and results of implementing inspection, audit decisions, or other measures based on risk management application;
[4]Evaluate trực tiếp bóng đá k+ effectiveness of criteria, compliance evaluation indicators with tax laws and classification of taxpayers’ risk levels.
