Proposal to remove the requirement to only get VAT refund after paying tax

VTV.vn - The Ministry of Finance has proposed removing the regulation of VAT refund only when the seller has paid tax, in order to remove difficulties for businesses, especially in the fields of agriculture and export.

Illustration photo.

The Ministry of Finance has proposed removing the requirement that businesses can only get a value-added tax (VAT) refund when the seller has declared and paid the tax, after receiving many complaints about the value-added tax policy, especially in the fields of agriculture and animal feed.

Accordingly, applying 5% input VAT without deduction causes production costs to increase, forcing livestock enterprises to include this tax in the selling price. As a result, domestic animal feed prices increase, directly affecting livestock farmers, while reducing the ability to compete with imported products, which are not subject to value added tax.

Exporting enterprises, although entitled to input VAT refunds, are facing difficulties due to regulations requiring them to wait for the seller to fully declare and pay tax before receiving a refund.

Meanwhile, the purchasing enterprise has no legal or technical tools to check the tax compliance status of the supplier at the time of filing the tax refund dossier. If the seller has not filed the tax declaration dossier or still owes VAT, the purchasing enterprise's invoice will not be accepted for tax refund, even though the enterprise has fully performed the declaration obligation, kept valid documents and paid via bank.

Rejection of tax refunds in such cases seriously affects cash flow, production and business progress and causes damage to businesses, even though the fault does not come from the buyer.

Faced with the above problems, in the report to the Government , the Ministry of Finance said that amending and supplementing the Law on Value Added Tax is necessary.

The Ministry of Finance also proposed expanding the scope of application of non-taxable subjects, to unprocessed or only pre-processed crops, forests, livestock, aquaculture products, and caught fish produced, caught, sold by organizations and individuals themselves, and at the import stage.

Source: https://vtv.vn/de-xuat-bo-yeu-cau-chi-duoc-hoan-thue-vat-sau-khi-nop-thue-100251031101240412.htm