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SUPPLEMENTING VAT DECLARATION RELATED TO THE AMOUNT OF REFUNDABLE VAT
Is the taxpayer allowed to declare supplementing the mount of refundable on the VAT declaration which submitted to the tax authority? And how to Declare in accordance with regulations?
Pursuant to the provisions of Point b, Clause 4, Article 7 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government:
- If the supplementation leads to decrease in the amount of refundable VAT: the taxpayer may may submit the supplementary VAT declaration before submitting the VAT refund application. In case the VAT refund application has been submitted to the tax authority, the taxpayer must complete the procedure for canceling the VAT refund application before submitting the supplementing VAT declaration.
- If the supplementation leads to an increase in the amount of refundable VAT: the taxpayer may only increase the refundable VAT if the tax declaration dossier of the next period and the application for tax refund is not submitted.
Example: The VAT declaration period for the first quarter of 2024, A Company has a deductible VAT amount of 3 billion VND. On April 25, 2024, A Company prepared and submitted the VAT declaration for the first quarter of 2024 to the tax authority and received a notification of declaration acceptance from the system.
On July 31, 2024, the Company prepared and submitted the VAT declaration for the second quarter of 2024 after transferring the remaining deductible VAT for the first quarter of 2024 to the tax authority (having received a notification of declaration acceptance from the system).
- A Company prepare and declare the supplementing VAT declaration to increase in the amount of refundable VAT (including cases of adjustment due to not declaring the "proposed VAT refund amount" or having declared but adjusting it up due to errors) of the first quarter of 2024 before submitting the VAT declaration for the second quarter of 2024 (before July 31, 2024).
- A Company prepare and declare the supplementing VAT declaration to increase in the amount of refundable VAT after submitting the VAT declaration for the second quarter of 2024.
- A Company prepare and declare the supplementing VAT declaration to reduce the amount of refundable VAT before submitting the VAT refund application.
