On 06 Feb 2017, General Department of Taxation issued Official Letter No.373/TCT-KK on guiding refund of VAT in case the taxpayers have VAT amount not fully credited in 12 consecutive months in the transitional period of Law No.106/2016/QH13. To be specific:
If the companies have not declared as full VAT refund incurred before July 2016 (for monthly declaraiton method), or before Quarter III, 2016 (for quarterly declaration method), but meet the requirments of VAT refund under Term 1 Article 18 of Circular No. 219/2013/TT-BTC dated 31/12/2013, then the companies is eligible to claim VAT refund. Tax Authoirity is required to before examination and after refund for all refund documents under high risk.
In case of declaration documents for June, 2016 (for monthly declaration method) or Quarter II, 2016 (for quarterly declaration method), the companies have not claimed accumulated input VAT refund not credited in full, but declared offset to output VAT payable for July, 2016 (for monthly declaration method) or Quarter III, 2016 (for quarterly declaration method), then the companies are not allowed to refund VAT, only offset to output VAT payable for next periods.
In case that the tax payers have implemented supplementary declarations but not the same to guidance under Office Letter No.4943/TCT-KK dated 23 Nov 2015, then the tax payers are allowed to claim the refund if the amount of VAT refund and VAT deduction are correctly declared (meaning that the tax payers do not declare in increase or decrease adjustment to input VAT incurred previous periods, but in previous deduction carried forward or adjustment in VAT increase in the correct period). The tax payers are required to follow offset or refund regulations under Law on VAT and Tax Administration, they are subject to be fined for declaration action not as regulated.
