CAN DISSOLVED ENTERPRISES RECEIVE VAT REFUND?
QUESTION
Dear TLK Law Firm, I currently have questions and hope to hear from you as follows: My business has been dissolved due to the expiration of its business term. However, I have paid input VAT, but it has not been deducted during the tax period, so I don't know if I will get a tax refund. So let me ask, can a dissolved enterprise get a VAT refund? I hope your company can help me answer this issue. Thank you!
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Thank you for your trust and sending questions to TLK Law Firm. Based on legal regulations and practical solutions, we would like to send you the following consulting content:
LEGAL BASIS
1. Document consolidating the Law on Value Added Tax No. 01/VBHN-VPQH passed by the National Assembly on April 28, 2016;
2. Enterprise Law No. 59/2020/QH14 passed by the National Assembly on June 17, 2020;
3. Circular No. 219/2013/TT-BTC issued by the Ministry of Finance on December 31, 2013, guiding the implementation of value-added tax law and Decree No. 209/2013/ND-CP dated December 18 2013 of the government detailing and guiding the implementation of a number of value-added tax laws;
4. Circular No. 130/2016/TT-BTC issued by the Ministry of Finance on August 12, 2016 guiding Decree No. 100/2016/ND-CP dated July 1, 2016 of the Government detailing regulations Implement the Law amending and supplementing a number of articles of the Law on Value Added Tax, the Law on Special Consumption Tax and the Law on Tax Administration and amending a number of articles in Tax Circulars;
5. Circular No. 25/2018/TT-BTC issued by the Ministry of Finance on March 16, 2018 amending a number of points of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance main (amended and supplemented according to Circular No. 130/2016/TT-BTC dated August 12, 2016 of the Ministry of Finance);
6. Other legal documents providing relevant guidance.
CONSULTATION CONTENT
Businesses can be dissolved for many different reasons such as: losses; business term expires; not having enough minimum staff as required by law; Business owners no longer need to do business…. But regardless of the reason, when dissolved, the business still receives legal protection. So can a dissolved enterprise receive a VAT refund? This is the question that most customers send to TLK Law Firm.
Therefore, through this article, we - TLK Law Firm will answer your questions about whether a dissolved enterprise can receive a VAT refund?
Photo 1. Can a dissolved enterprise receive a VAT refund?_Hotline: 0972118764
I. SOME IMPORTANT LEGAL ISSUES RELATED TO VAT REFUND FOR DISSOLVED ENTERPRISES
1. What is enterprise dissolution? What is VAT refund?
Dissolution of an enterprise is the process of terminating the existence of an enterprise under the condition that the enterprise is completely solvent or the enterprise guarantees payment of its property obligations.
VAT refund is where an enterprise will receive a refund from the State Budget for the amount of input VAT paid when purchasing goods/services, but not yet deducted during the tax period, or in cases that goods/services are not subject which have to pay VAT. However, to receive a tax refund, taxpayers must meet certain conditions prescribed by law.
2. Value added tax refund conditions
Pursuant to Circular 219/2013/TT-BTC, businesses and organizations eligible for VAT refund above must simultaneously meet the following conditions:
(1) Must be a business establishment that pays tax using the deduction method;
(2) Has been granted a business registration certificate or investment license (practice license) or establishment decision from a competent authority, has a seal in accordance with the provisions of law, and is prepared and recorded. keep accounting books and accounting documents according to the provisions of law on accounting;
(3) Have a deposit account at a bank according to the business establishment's tax code.
Note: In cases where business establishments have declared and requested a tax refund on the VAT declaration, they cannot transfer the input tax amount requested for tax refund into the deductible tax amount of the following month.
Thus, if the above conditions are met, organizations and individuals subject to VAT refunds will receive a tax refund.
3. Can a dissolved enterprise receive a VAT refund?
According to Circular 130/2016/TT-BTC, business establishments that pay value-added tax using the tax deduction method are entitled to a value-added tax refund when converting ownership, converting businesses, merging or consolidating, division, separation, dissolution, bankruptcy, termination of operations with overpaid value-added tax or input value-added tax that has not been fully deducted.
In case a business establishment terminates operations and does not incur output VAT from its main business activities, the refunded tax amount must be returned to the state budget. In case there is a sale of assets subject to VAT, there is no need to adjust the corresponding input VAT amount of the assets sold.
Thus, after the decision to terminate operations, the enterprise must urgently liquidate, sell assets... and settle taxes (within 45 days from the decision to terminate operations). If the VAT amount has not been fully deducted, the enterprise shall carry out procedures to refund the tax or repay the previously refunded tax amount. After completing the procedures prescribed by law on dissolution and termination of operations, if the enterprise has not yet carried out tax refund procedures (if there is VAT that has not been fully deducted), the tax authority will tax refund is not processed.
=> See more: Tax accounting services, financial reporting services
Photo 2. Can a dissolved enterprise receive a VAT refund?_Hotline: 0972118764
II. SUMMARY OF ANSWER SECTION: CAN DISSOLVED ENTERPRISES RECEIVE VAT REFUND?
Dear Customers, from the above synthesis and analysis, TLK Law Firm would like to give the following answer:
Dissolved enterprises can still receive value added tax refunds when they meet the following conditions in accordance with the law:
(1) Pay tax using the deduction method;
(2) Has been granted a business registration certificate or investment license (practice license) or establishment decision from a competent authority, has a seal in accordance with the provisions of law, and is prepared and recorded. keep accounting books and accounting documents according to the provisions of law on accounting;
(3) Have a deposit account at a bank according to the business establishment's tax code.
III. HOW SHOULD YOU BEST CHOOSE AN ORGANIZATION THAT PROVIDES LEGAL SERVICES?
An organization providing quality and reputable legal services should have the following criteria:
First: Must be an official legal organization with a legal operating license;
Second: It is better if the Board of Directors must be lawyers, experienced and have high degrees;
Third: Have a team of lawyers and a systematic, professional, and thoroughly trained human resources system;
Fourth: Friendly, dedicated and make every effort for the benefit of customers. Consider customer satisfaction and work quality as your own honor;
Fifth: Professional, thoughtful, flexible and logical service provision process to optimize work performance and save customers' time;
Sixth: Reasonable and competitive service prices;
Seventh: Rich services in both fields of supply and service packages in the same field for customers to choose the appropriate service package, as well as comprehensive support for customers throughout the operation process. movement;
Eighth: Have the ability to Connect - Promote commercial relationships for customers if customers have needs,...
Finding a comprehensive, professional and reputable legal consulting organization is what every customer wants. Because no one wants to risk losing both money and time when the results are not as expected. However, finding such an organization is not easy because the number of service providers in the Vietnamese market today is very large with varying quality.
A suggestion for you: Although our TLK Law Firm does not dare to claim to be the best legal service provider on the market, we satisfy all of the above criteria and more will definitely be a good choice for you.
=> See more: Which financial reports are required to be audited?
IV. SOME QUESTIONS RELATED TO VAT REFUND FOR DISSOLVED ENTERPRISES
Question 1: What is a taxpayer?
According to the Consolidated Document of the VAT Law No.: 01/VBHN-VPQH, value-added taxpayers are organizations and individuals that produce and trade in goods and services subject to value-added tax (hereinafter referred to as value-added tax) and organizations and individuals importing goods subject to value-added tax (hereinafter referred to as importers).
Question 2: In what cases is an enterprise dissolved?
Reply:
According to the Enterprise Law 2020, businesses are dissolved in the following cases:
(1) End of the operating term stated in the company charter without a decision to extend;
(2) According to resolutions and decisions of the business owner for private enterprises, of the Board of Members for partnerships, of the Board of Members and company owner for limited liability companies term, of the General Meeting of Shareholders for joint stock companies;
(3) The company no longer has the minimum number of members as prescribed by this Law for 06 consecutive months without carrying out procedures for converting the type of enterprise;
(4) The Business Registration Certificate is revoked unless otherwise prescribed by the Law on Tax Administration.
Question 3: How is the percentage for calculating value-added tax determined?
Reply:
According to the Consolidated Document of the VAT Law No. 01/VBHN-VPQH, the percentage to calculate value-added tax is specified as follows:
(1) Distribution and supply of goods: 1%;
(2) Services and construction excluding raw materials: 5%;
(3) Production, transportation, services associated with goods, construction including raw materials: 3%;
(4) Other business activities: 2%.
=> See more: Deadline for submitting financial reports?
Above is some general advice that we would like to offer to our customers. As a service provider, we always understand and are ready to accompany and solve the needs and difficulties that customers are facing. If you still have questions or need more in-depth advice, please contact the hotline: 0972118764 to receive direct advice from a lawyer (completely free consultation).
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