The deadline for filing import and export tax refund applications is a crucial legal milestone that every chief accountant and business must pay special attention to in order to protect their financial interests. Understanding tax refund regulations not only helps businesses recover overpaid or incorrectly paid amounts but also reflects professional tax risk management capabilities in the context of increasingly stringent customs regulations.
Every year, thousands of businesses receive substantial tax refunds, contributing significantly to the replenishment of crucial business capital. However, delays in submitting import/export tax refund applications or errors in documentation can lead to rejection, causing substantial losses for businesses. This article by MAN – Master Accountant Network will systematize the process accordingly. Tax Administration Law No. 38/2019/QH14 and Decree 18/2021/ND-CP.
Legal basis and conditions for import and export tax refunds.
Before learning about the deadline for submitting import and export tax refund applications, businesses need to clearly identify which category they fall under that is eligible for a tax refund according to Article 19 of the 2016 Law on Export and Import Taxes. Correctly identifying the eligible category is the first step in ensuring that the application is quickly accepted by the Customs authorities.
Most current tax refund cases focus on goods that are not actually imported or exported, re-exported goods, or raw materials for the production of export goods. Each case requires strict requirements regarding the condition of the goods (unused) and a transparent accounting system to facilitate post-audit procedures.
Common cases eligible for tax refunds
There are five main groups of subjects for whom tax refunds are clearly stipulated by law. First, those who have paid taxes but do not possess actual goods or whose quantity is less than declared. Second, those whose exported goods must be re-imported into Vietnam. Third, those whose imported goods must be re-exported back to the foreign consignor or exported to a third country.
Fourthly, there are goods imported for production and business purposes but subsequently used in the production of export goods and subsequently exported as finished products. Finally, there are equipment and machinery belonging to individuals or organizations that are temporarily imported and re-exported to serve construction projects or building works under license.
Note regarding refund value and minimum amount
Businesses should note that the amount of import tax refunded will be calculated based on the remaining usable value of the goods. If the goods have reached the end of their usable value upon re-export, the tax authorities will not refund the amount paid. This requires the accounting department to closely monitor depreciation and the actual storage time of the goods.
In addition, the government stipulates a minimum tax amount required for tax refund procedures. If the refund amount falls below this level, the Customs agency will not accept the application for processing in order to optimize administrative costs. Therefore, businesses need to carefully calculate the amount before submitting their application within the deadline for import and export tax refund applications.
The most detailed regulations on the deadline for submitting import and export tax refund applications.
Based on the current Tax Administration Law, the deadline for submitting import and export tax refund applications is classified based on the nature of the application and the type of business. Correctly identifying the type of application (Refund first, audit later or Audit first, refund later) will directly affect the speed of cash recovery for the entity.
Below is a summary of processing times that businesses need to be aware of:
| Type of document/Subject | Processing time of the Tax Authority | Legal regulations |
| This file is eligible for a tax refund. | No later than 6 working days | Tax Administration Law 2019 |
| The file is subject to tax refund audit. | No later than 40 days from the date of receipt | Decree 126/2020/ND-CP |
| Authorized Economic Operators (AEOs) | No more than 1 working day | Circular 72/2015/TT-BTC |
Deadline for submitting import and export tax refund applications for early refunds.
For businesses with a good history of legal compliance, applications will be classified under the "refund first, audit later" category. In this case, the deadline for submitting import/export tax refund applications and receiving payment is very quick, only 6 working days from the date of notification of receipt of a valid application from the customs authority.
To qualify for this incentive, businesses need to ensure a complete and accurate set of documents, free from errors in HS codes, taxable value, or bank payment documents. This is a key objective that professional tax consulting services at MAN often aim for to help clients optimize their working capital.
Processing time for pre-refund audit applications.
High-risk applications or businesses claiming tax refunds for the first time are often subject to prior inspection. In such cases, the deadline for submitting import/export tax refund applications for assessment can be extended up to 40 days. During this period, customs authorities may visit the production facility to verify capacity and production standards.
Businesses need to be prepared to provide explanations regarding raw materials, production processes, and warehousing. Failure to provide these explanations within the deadline for submitting import/export tax refund applications may result in the application being suspended or rejected, seriously impacting the company's financial plans.
Required documents for tax refund applications, specific to each case.
To ensure that the deadline for submitting import and export tax refund applications is not missed, businesses need to prepare a "correct and complete" set of documents from the outset. Depending on the specific case, the required documents will vary, and accountants need to be aware of this to avoid having their applications rejected multiple times.
Below are the required documents according to Decree 18/2021/ND-CP:
Imported goods for export production (SXXK)
For imported goods for export processing, the most important document is the Raw Material Tax Calculation Report according to Form No. 10, Appendix VII. Businesses must also provide bank payment documents, import/export contracts, and documents proving the legality of the production facility in Vietnam for the tax authorities to verify.
Proving ownership of machinery and equipment suitable for imported raw materials is a mandatory requirement. Without this documentation, even if submitted within the deadline for import/export tax refund applications, the Customs authorities will refuse to process the claim due to doubts about the authenticity of the company's production activities.
Re-export/re-import goods group
In cases where defective goods must be re-exported or customers refuse to accept them and re-import them, businesses need a written agreement from their foreign partner to return the goods. This is the most important evidence to convince the tax authorities to process the refund. All documents must be standardized and submitted within the deadline for filing import/export tax refund applications.
If goods are shipped via express delivery service, a confirmation of failed delivery from the postal service is required. Thorough preparation helps businesses avoid delays in filing complaints or requesting tax refunds, as stipulated by the current Tax Administration Law regarding re-exported goods.
The step-by-step process for claiming import/export tax refunds.
After understanding the deadlines for submitting import and export tax refund applications, businesses follow these three standardized steps:
- Step 1: Receiving the application. Submit your application through the public service system or directly at the Customs Sub-department where the declaration was opened. This is the time when the deadline for submitting import/export tax refund applications for processing by the authorities begins.
- Step 2: Evaluation. The Customs agency compares the VNACCS/VCIS data with the documents provided by the business. If the documents are incomplete, they will request additional information within 3 working days.
- Step 3: Decision. After determining the eligible tax amount, the Customs agency signs the tax refund decision and transfers the documents to the State Treasury to disburse the money to the enterprise via bank account.
Common mistakes that cause businesses to lose their tax refund rights.
Many businesses, despite complying with import and export tax refund application deadlines, still have their applications rejected due to invalid payment documents. Common examples include cash payments for invoices exceeding 20 million VND or discrepancies between electronic money transfers and contracts, hindering customs data verification.
Another error is discrepancy between actual production quotas and initial declarations. When there is a large, unexplained discrepancy, the tax authorities have the right to suspect the business of concealing materials and refuse tax refunds. This often drags on beyond the deadline for submitting import/export tax refund applications, leading to numerous legal consequences.
The optimal solution from MAN – Master Accountant Network regarding the deadline for submitting import and export tax refund applications.
Handling tax refunds in-house often consumes significant resources and exposes businesses to the risk of penalties if the documentation is flawed. MAN provides a comprehensive accounting, auditing, and tax service ecosystem, helping businesses completely eliminate concerns about deadlines for submitting import and export tax refund applications.
Our services include reviewing tax declarations, checking production quotas, and verifying bank payment documents. MAN is committed to helping businesses create optimal tax plans, ensuring that documentation always meets the highest priority standards, and facilitating efficient cash flow in international business operations.
Conclude
The deadline for submitting import and export tax refund applications is an inseparable element in corporate financial management. Understanding the timeframes of 6 days, 40 days, or 1 day, along with the standard application dossier as stipulated in Decree 18/2021/ND-CP, will help businesses proactively manage their capital turnover and avoid unnecessary legal risks.
To ensure you receive the best possible benefits, contact MAN – Master Accountant Network today. We are proud to offer... auditing services, tax accounting, tax consulting, tax settlement and tax reporting Professional. MAN is committed to supporting businesses, ensuring that import and export tax refund applications are submitted on time with the highest approval rate.
Service contact information at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
Frequently Asked Questions about Import and Export Tax Refunds
Taxpayers have the right to file for a tax refund within 5 years from the date of tax payment. However, delaying the process for too long makes it difficult to verify documents, increases the likelihood of closer scrutiny by tax authorities, and prolongs the actual processing time compared to what was expected.
Yes. However, VAT refund procedures are handled by the local tax authority, while import tax refunds are handled by Customs. Businesses need to coordinate between the two agencies to ensure their rights are protected within the deadline for submitting import and export tax refund applications.
Absolutely. MAN assists in reviewing applications to transition from the "Inspection First" to "Refund First" status, and provides in-depth explanations on behalf of businesses, helping to expedite the process of receiving refunds legally and quickly into their accounts. What happens if I submit my import/export tax refund application later than the deadline?
Is it possible to get a VAT refund after having already received a refund for import duties?
Does MAN's service help shorten the tax refund process?
