Vietnamese enterprises are facing significant delays and challenges as they navigate the complex process of obtaining tax refunds, particularly concerning Value Added Tax (VAT). On December 13, 2024, around 450 businesses gathered for a dialogue hosted by the Ministry of Finance and the Vietnam Chamber of Commerce and Industry (VCCI) in Ho Chi Minh City to address this pressing issue.
Among the most prominent cases discussed was the situation faced by the Southern Steel Company (VNSTEEL), which has been struggling to reclaim nearly 200 billion VND (approximately $8.5 million) stuck at the Bà Rịa - Vũng Tàu Tax Department since August 2022. Tô Vĩnh Hưng, the Vice General Director of VNSTEEL, expressed frustration, noting, "Cục thuế nói không xác minh được, không liên hệ để xác minh được những đơn vị cung cấp cho công ty chúng tôi, dẫn tới các hóa đơn đầu vào này số tiền rất lớn nhưng vẫn bị treo lại, không giải quyết hoàn." This issue was largely tied to the nature of their business, which involves purchasing scrap metal—a category flagged as high-risk for compliance verification.
To make matters worse, VNSTEEL's tax refund has also become entangled with investigations concerning one of its suppliers. The Ho Chi Minh City Tax Department determined the invoice related to their purchases was implicated in illegal invoicing practices and referred the case for criminal investigation, prompting Bà Rịa - Vũng Tàu authorities to halt the tax refund process entirely. Hưng urged, "Chúng tôi kiến nghị việc xem xét điều tra xác minh nên diễn ra trong thời điểm kiểm tra thuế thôi. Còn sau đó thì tách ra," emphasizing the need for separating compliance evaluations from tax refunds.
During the conference, other business representatives raised similar concerns about the challenges of processing tax refunds amid strict enforcement actions targeting fraudulent practices. Cao Thị Thêu, a representative from Namtex, voiced her frustration with inconsistent requirements surrounding partner verification processes, particularly when verifying foreign entities’ presence or investment status within Vietnam. Such challenges seemingly came to light following the tightening of regulations aimed at reducing fraudulent tax activities.
Mai Sơn, Deputy General Director of the General Department of Taxation, reiterated the need for thorough verification processes, stating, "Tình trạng mua bán hóa đơn bất hợp pháp đang diễn ra phức tạp, nhiều doanh nghiệp được lập ra chỉ để trục lợi từ hành vi này." He acknowledged the burdens justified by the increased scrutiny against potential fraud but indicated it was impacting compliant companies.
Deputy General Director of the General Department of Customs, Âu Anh Tuấn, shared his perspectives on the larger structural issues contributing to tax refund delays. Highlighting the agency's commitment, he remarked, "Nếu hồ sơ không đáp ứng đủ việc DN có hiện diện tại Việt Nam, cơ quan thuế sẽ không xử lý thuế tiếp theo trong hoàn thuế đối với xuất nhập khẩu tại chỗ." He asserted their efforts to streamline tax refund processes, promising to facilitate improved cooperation with all related departments.
Companies lamented the inability to receive their dues due to investigation hurdles. An anonymous representative from Fashion Garments noted, "Không thể vì một số DN làm ăn gian dối mà để vạ lây những DN khác. Hiện tại DN nào cũng rất cần vốn, do vậy chậm hoàn thuế VAT khiến DN rất khó khăn," reinforcing the narrative surrounding urgent cash flows stifled by prolonged investigations.
Although officials acknowledged the legitimate frustrations of businesses during this annual forum, they also stressed the fundamental need for heightened vigilance to combat illegal activities. This delicate balance between enforcement and support for legitimate businesses will be pivotal as the Ministry of Finance and its agencies refine their procedures. The dialogue highlighted the pressing need for regulatory improvements to protect compliant enterprises from the consequences of partner mismanagement.
While the government promises to adopt measures to expedite tax refund processes, the efficacy of these actions remains to be seen. The weight of the discussion at this year's conference indicates the government is aware of the strain on businesses and the necessity of evaluating existing tax policies.
Tax refund delays continue to be at the forefront of concerns for Vietnamese enterprises, and this issue is unlikely to fade away soon without substantial reform. It is imperative for authorities to navigate these complex waters—their ability to reconcile enforcement with support will shape the future of Vietnam’s business environment.
