Da Nang speeds up tax refund for businesses amid COVID-19

In order to contribute to creating favourable conditions for organisations and businesses to have more financial resources for the solving of difficulties triggered by COVID-19, in addition to the extension of tax payment, the Da Nang watchdog is speeding up the handling of VAT refund dossiers.

The Da Nang Tax Department has accelerated the handling of tax refunds for businesses to gain more financial resources amid COVID-19.

A scene is taken at the ‘One-stop-shop’ site of the Son Tra – Ngu Hanh Son Tax Chapter. Photo: M. QUE

Between January and August 2021, businesses received a total of more than VND 625.8 billion in value- added tax (VAT) refunds, equaling 101% over the same period in 2020.

Specifically, VAT refunds for exporting enterprises reached VND559.8 billion, whist more than VND 62.8 billion for investment projects and nearly VND 3.2 billion went to ODA projects and others.

In addition, the local tax authority has settled personal income tax refunds of nearly VND 73 billion VND, equaling 109% over the same period in 2020. In particular, VND 40.6 billion was worth of refunds for other taxes and fees.

As accumulated, as of August 31, the local tax authorities have processed more than 5,500 tax refund dossiers with a total of VND739.3 billion worth of tax refunds.

As compared to the year-ago period, the city saw an increase in both the number of handled dossiers and the amount of tax refunds.

Particularly, VAT refunds for investment projects witnessed a decline as compared to the same period last year due to the serious impact of COVID-19 which forced the construction of hotels and tourism-related projects to have been halted.

As an enterprise specializing in manufacturing and exporting 100% of the products to foreign markets, Daiwa Viet Nam Co., Ltd, over recent times, has received timely VAT refunds which helped it gain more financial resources to solve pandemic-triggered difficulties.

Currently, the tax refunds are done electronically, saving time and costs for businesses and promote exchanges and quickly respond to information between the tax watchdog and businesses.

Since 2020, in light of COVID-19 wave, the submission of tax refund dossiers has been made online anytime and anywhere.

With a large number of businesses receiving tax refunds every year, the management is always a matter of concern and it is tightened by the local tax watchdog.

In addition to efforts to accelerate tax reimbursements for businesses, the Viet Nam General Department of Taxation has requested a number of municipal/ provincial Tax Departments to implement risk management measures on VAT refunds and post-refund inspection to cut down on frauds in which businesses may take advantage of legal gaps to illegally get tax refunds.

According to Mr. Luu Duc Sau, Deputy Director in charge of the Da Nang Tax Department, the settlement of tax reimbursement for taxpayers must be focused, always ensuring compliance with the national laws and regulations, in a timely manner. This helped create the best possible conditions to mobilise resources for investment and production, improving the efficiency of capital use, increasing export activities, and ensuring a fair and reasonable contributions amongst taxpayers.

DA NANG Today