Vietnam – Guidance From The Ministry Of Finance On VAT Refund And Penalty For Late Tax Payment From 1st July 2016.

21 August, 2016

 

The Ministry of Finance has issued an official letter providing further guidance on above matter as follows:

 

• VAT refund: The Tax Department will continue to accept and process applications for VAT refund from enterprises having input VAT which has not been fully credited, which was incurred prior to the tax declaration period of July 2016 (for monthly tax declaration) or prior to the tax declaration period of Quarter II/2016 (for quarterly tax declaration) and satisfying the conditions for tax refund in accordance with Item 1, Article 18 of Circular 219/2013/TT-BTC dated 31st December 2013 issued by the Ministry of Finance, to be in line with the law.
• Penalty on late tax payment:
  • For tax arrears incurred before 1st July 2016 which have not been remitted to the State Budget by the taxpayers by 1st July 2016 the reduced rate of interest for late payment, which is 0.03%/day will apply from 1st July 2016.
  • In the event tax payers make incorrect declarations which lead to lower tax payable before 1st July 2016 and detected by the tax authority via tax inspection, investigation or self-detected by the tax payers after 1st July 2016, of the rate for late payment of 0.05%/day (or the appropriate rate in accordance with the law of each period) computed from the payment deadline to 30th June 2016 and apply the rate of late tax payment of 0.03%/day on the tax arrears incurred from 1st July 2016 to the actual payment date to the State Budget.