Question:
Our company imports goods from foreign suppliers for sales to domestic customers. During the course of business, there were some defective items, so the company returned them to the foreign suppliers. The details are as follows:
In 2018:
• On October 31, 2018, XKK declaration number: 302185128251 was opened for returning 17,050kg of non-dairy cream powder MF10 (including 14,400kg from import declaration number: 102244055060 dated September 27, 2018, and 2,650kg from import declaration number: 102268830200 dated October 11, 2018 => 0% import tax rate and 10% VAT rate on imported goods, totaling 123,468,089 VND).
=> Our company deducted the entire VAT amount for the imported goods mentioned above in the VAT declaration form for October 2018.
In 2019: Similarly, we had the following return declarations:
• On June 18, 2019, XKK declaration number: 302587119020 was opened for returning 1,000kg of coffee flavor 384501 (from import declaration number: 102519726960 dated March 8, 2019 => 0% import tax rate and 10% VAT rate on imported goods, totaling 49,772,500 VND). Our company deducted the entire VAT amount for the imported goods mentioned above in the VAT declaration form for March 2019.
• On August 13, 2019, XKK declaration number: 302694004342 was opened for returning 25,000kg of non-dairy cream powder SPD35AM (from import declaration number: 102797062430 dated August 5, 2019 => 0% import tax rate and 10% VAT rate on imported goods, totaling 83,322,000 VND).
=> Our company deducted the entire VAT amount for the imported goods mentioned above in the VAT declaration form for August 2019.
• On August 14, 2019, XKK declaration number: 302696647320 was opened for returning 25,000kg of non-dairy cream powder SPD35AM (from import declaration number: 102799157861 dated August 6, 2019 => 0% import tax rate and 10% VAT rate on imported goods, totaling 83,900,625 VND).
=> Our company deducted the entire VAT amount for the imported goods mentioned above in the VAT declaration form for August 2019.
• On September 9, 2019, XKK declaration number: 302743477430 was opened for returning 955kg of non-dairy cream powder MF10 (from import declaration number: 102626468010 dated May 6, 2019 => 0% import tax rate and 10% VAT rate on imported goods, totaling 6,804,824 VND).
=> Our company deducted the entire VAT amount for the imported goods mentioned above in the VAT declaration form for May 2019.
Currently, according to Official Letter No. 1453/TCHQ-TXNK dated March 14, 2019, regarding VAT refund, from February 1, 2018, if a business has already paid the VAT on imported goods but subsequently exports them back to the foreign supplier, the customs office will process the excess VAT (VAT refund).
Answer:
Circular No. 38/2015/TT-BTC amending and supplementing Circular No. 39/2018/TT-BTC dated April 20, 2018, on customs procedures; customs supervision and control; export tax, import tax, and tax administration for exported and imported goods, states the following:
• Regarding the declaration to the tax authority on the VAT amount refunded by the customs office, item 4 of Article 132 stipulates: “For the refunded VAT amount as prescribed in item 2 of this Article, the taxpayer is responsible for declaring the refunded VAT amount with the tax authority in charge of enterprise management as regulated by law.”
• Imported goods subsequently re-exported are eligible for excess VAT refund (guidance in Official Letter No. 1453/TCHQ-TXNK dated March 14, 2019, issued by the General Department of Customs).
In the case of the company mentioned: If the VAT amount has been declared and deducted with the tax authorities, it is not necessary to proceed with the excess VAT refund at the customs office (since the information on excess VAT refund at the customs office must be re-declared with the tax authority, as mentioned in item 4 of Article 132 above).
