On September 18, 2023, the Director General of the General Department of Taxation issued Decision 1388/QD-TCT on applying risk management in classifying value-added tax refund applications and selecting taxpayers to develop post-refund inspection and audit plans.
1. The General Department of Taxation applies a new set of criteria for classifying VAT refund applications.
Accordingly, Decision 1388/QD-TCT of 2023 promulgates the set of criteria for classifying VAT refund applications and selecting taxpayers with risk indicators to develop post-refund inspection and audit plans, which includes 03 groups, specifically:
– Group I: Group of criteria for classifying VAT refund applications subject to pre-refund verification;
– Group II: Group of criteria for classifying VAT refund applications using the risk scoring method;
– Group III: Indicators based on criteria required by the tax authority's management.
2. The main purpose of the regulation on applying risk management in classifying VAT refund applications.
- This serves as a basis for tax authorities to assess and rank the risk of taxpayers who have filed applications for value-added tax refunds.
- The results of the risk assessment and ranking for taxpayers at point 1 serve as the basis for:
- The decision to conduct a pre-refund audit on value-added tax refund applications from taxpayers rated as high-risk has been made.
- Develop a plan for post-refund audits and inspections of value-added tax refund applications subject to the "refund first, audit later" procedure, based on the taxpayer's risk rating.
- Standardize the content and work steps, creating uniformity in the process of selecting taxpayers with risk indicators for classifying value-added tax refund applications and developing post-refund inspection and audit plans.
- Contributing to the promotion of reforms and modernization in the process of selecting taxpayers with signs of risk, promptly detecting violations of tax laws, and improving the efficiency of tax administration.
See more: Criteria for classifying tax refund applications according to Decision 1388_QD_TCT Effective from September 18, 2023.