HM&P Lawyer shares business challenges in VAT refund procedures on VOH Channel

On October 14, 2024, during the "Business and Law" program on Ho Chi Minh City’s Voice of the People Radio (VOH), Lawyer Nguyen Nhat Duong, representing HM&P Law Firm, provided in-depth insights into the difficulties businesses face during the process of VAT refund procedures.

In the interview, Lawyer Duong emphasized, "VAT refund procedures are highly significant for businesses, especially for large-scale companies, as the refunded tax amount can represent a substantial portion of their cash flow". However, in reality, many businesses are currently experiencing obstacles in the VAT refund process, leading to lengthy delays in receiving their refunds, despite their best efforts to cooperate with tax authorities.

According to Lawyer Duong, there are three major issues that businesses often encounter during this procedure:

First, discrepancies between the accounting records and the tax declarations. The inconsistency between these two sets of data is one of the most common challenges that hinders the VAT refund process.

Second, the risk of using invoices from entities flagged for tax-related risks or violations. In such cases, the tax authorities often require businesses to provide explanations, not only for the relevant invoices but sometimes for all the invoices submitted in the refund application.

Third, errors in determining the correct tax rate for purchased goods, particularly for items subject to VAT reductions. Many businesses have faced challenges with this regulation, especially during the period when the Government is implementing VAT reduction policies for certain products.

With extensive experience in supporting businesses with VAT refund cases, HM&P’s representative provided practical recommendations and solutions, not only for businesses but also for relevant authorities to collaborate and assist, thereby facilitating a smoother VAT refund process for enterprises.

HM&P Law Firm sincerely thanks Ho Chi Minh City’s Voice of the People Radio (VOH) for enabling Lawyer Nguyen Nhat Duong and HM&P to share practical and beneficial information with businesses. Additionally, HM&P has submitted several recommendations to the relevant authorities with the hope of alleviating some of the difficulties faced by enterprises.

Please follow the link below for the detailed content of this interview.

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