No VAT Refund for Incorrect On-Site Export Declarations

According to the latest guidance in Official Dispatch No. 558/TCT-CS dated February 20, 2024, of the General Taxation Department on value-added tax policy, false declaration of information about export activities in places where businesses can Loss of VAT refund rights.

The General Tax Office notes that in case an enterprise opens an on-site export declaration not by the provisions at Point c, Clause 1, Article 35 of Decree 08/2015/ND-CP, the exported goods will not be eligible for a VAT refund. do not meet the customs declaration conditions.

According to Point c, Clause 1, Article 35 of Decree 08/2015/ND-CP, goods sold to foreign traders can only register export declarations in case the foreign trader is not present in Vietnam ( no investment or business activities in Vietnam; no representative office or branch in Vietnam, Official Dispatch No. 3622/TCHQ-GSQL dated July 12, 2023).

Recommendations:

To ensure their rights, businesses need to pay attention to the following points when exporting at the office:

• Be careful and accurate when declaring information about on-site export activities on the customs declaration.

• Consult a tax professional or the authorities if you have any questions.

• Maintain complete records and documents related to on-site export activities for comparison when necessary.

The General Department of Taxation also requested the Tax Departments to coordinate closely with the Customs Authority to inspect and supervise export activities at the department and promptly handle violations.

Contact W&A for more details!