Participants said the problems in VAT refund procedures still exist, and if they cannot be solved, they will hinder business and affect the stability, transparency and fairness of the investment environment.

Nguyen Thi Cuc, chair of the Vietnam Tax Consultancy Association, and former deputy director general of the General Department of Taxation (GDT), an arm of the Ministry of Finance (MOF), cited the tax refund procedures followed by a wooden furniture exporter and a cassava trading company to show that businesses and taxation agencies have to cope with many obstacles when implementing regulations on tax refunds.

Cuc believes that it would be better to "cut business stages into pieces" to more easily define the responsibilities of each state agency at every stage.

She said that tax officers are worried that they may accidentally break the law, and there should be regulations to protect tax officers.

Nguyen Van Phung, former director of the Large Enterprise Taxation Department under GDT, commented that tax agencies are following a multi-round examination and inspection scheme to protect the state budget, but the scheme is cumbersome and causes difficulties for enterprises.

He said ministries, branches and local authorities have to make direct instructions in dealing with violations. Violations at different stages need to be punished in stages instead of placing responsibility on taxation authorities and tax officers for all violations.

He suggested clarifying tax officers’ responsibility in the Value Added Tax Law and Tax Management Law. Tax officers only have the responsibility of checking documents as stipulated in the laws.

Mai Xuan Thanh, director general of GDT, complained that buying and selling invoices remains a burning problem. The application of e-invoices has allowed GDT to more clearly recognize the situation.

Citing the case of Thu Duc House, Thanh said it had a serious impact on tax officers’ behavior. GDT, when participating in the process of drafting the amended VAT, has proposed including provisions about the responsibilities of tax officers in the new law.

Nguyen Quynh Anh, deputy chair of the Vietnam Bar Association, said if the responsibility of tax officers is clarified, this will help remove obstacles in the tax refund process. 

T. Nhung