Do enterprises get VAT refund if making additional declarations due to incorrect tariff rates?

To help enterprises understand the provisions related to duty policy in the field of customs, according to the General Department of Vietnam Customs, in point m, Clause 2, Article 8 of the Law on VAT; Clause 12, Article 10 of Circular 219/2013/TT-BTC of the Ministry of Finance stipulates: “Teaching aids include models, pictures, boards, chalks, rulers, compasses, other equipment and instruments for teaching, research, and scientific experimentation” shall apply the VAT rate of 5%.

Professional activities at Northern Hanoi Customs Branch. Photo: N. Linh

Regarding the additional declaration, Clause 4, Article 29 of the Law on Customs stipulates: “If a customs declarant found that the declaration contains errors, he/she may make an additional declaration in the following cases: For goods granted clearance: Within 60 days from the date of customs clearance and before the day on which customs authority decides to conduct post-customs clearance inspection unless additional declarations are related to the import or export permit; specialized inspection in terms of quality, health, culture, animal quarantine, plant quarantine and food safety. If customs declarants detect errors in their customs declarations when the time limit  prescribed in Points a and b of this Clause has expired, they shall make an additional declaration and their errors shall be handled in accordance with the laws on taxes and handling of administrative violations.”

Point b, Clause 1, Article 20 of Circular 38/2015/TT-BTC is amended and supplemented in Clause 9 Article 1 of Circular 39/2018/TT-BTC providing for additional declaration of customs dossiers for imported goods as follows: “Additional declaration after customs clearance: Except additional declaration relevant to the export license or import license, specialized inspection in terms of goods quality, health, culture, quarantine of animals, animal products or plants or food quality, the declarant shall make an additional declaration after customs clearance in the following cases: The declarant or taxpayer that finds errors in the customs declaration before the customs authority issues a decision on post-clearance inspection may make an additional declaration within 60 days from the date of customs clearance; the declarant of taxpayer that finds errors in the customs declaration after 60 days from the date of customs clearance and before the customs authority issues a decision on post-clearance inspection shall make additional declaration and incur penalties prescribed by law”.

Regulations on the handling of overpaid tax, Clause 1, Article 60 of the Law on Tax Administration stipulates: “If the tax, late payment interest or fine paid by a taxpayer is greater than the amount payable, the overpaid amount may be offset against the outstanding tax, late payment interest or fine, or against the tax, late payment interest or fine payable next time, or maybe refunded if the taxpayer no longer has outstanding tax, late payment interest or fine”.

Procedures for the handling of overpaid tax, late payment interest and fines shall comply with the provisions of Clauses 2, 3, and 4, Article 131 of Circular 38/2015/TT-BTC as amended and supplemented in Clause 64 of Article 1 of Circular 39/2018/TT-BTC. The authority of handling of overpaid tax, late payment interest and fines shall comply with Article 10 of Circular 06/2021/TT-BTC of the Ministry of Finance.

With the current regulations, the General Department of Vietnam Customs requested T&N Trading and Investment Co., Ltd. to study the above regulations and compare them with the customs dossier and the actual imported goods to determine specifically.

If it belongs to the case of making additional declaration due to incorrect declaration of the VAT rate, resulting in the paid tax amount being larger than the payable tax amount, the overpaid tax amount will be refunded when the taxpayer no longer owes tax or late payment interest. T&N Trading and Investment Co., Ltd can contact the customs authority where they carried out import procedures for specific instructions.