Register, Declare, Pay Tax, and Settlement Value Added Tax

To use the refund of VAT paid stated on the VAT invoice or on the payment document stating the payment amount including VAT.

This addition is seriously beyond the authority because the circular is only allowed to guide the decree and absolutely cannot expand the scope of tax refunds. This is also a manifestation of the phenomenon that sub-law documents guiding the implementation of the Law on VAT are increasingly far from the Law on VAT itself, distorting the Law on VAT and creating conditions for fraudulent acts in tax refunds.

2.3.2.5. Registration, declaration, tax payment, value added tax settlement

From July 1, 2007, regulations related to VAT management including registration, declaration, tax payment, and tax settlement are stipulated in the Law on Tax Management and its implementing documents. Therefore, when designing the revised Law on VAT, the provisions on these contents were removed.

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CONCLUSION OF CHAPTER 2

1. The thesis outlines the process of building and implementing VAT law in Vietnam, and gives an overview of the current status of VAT law in terms of its advantages and disadvantages.

2. The thesis evaluates the current status of VAT law in our country on some specific aspects and points out the shortcomings in the regulations.

3. The shortcomings of VAT law have created the necessity of improvement, and are also the practical basis for proposing solutions to improve VAT law.

Chapter 3‌

PRINCIPLES, DIRECTIONS AND SOLUTIONS TO IMPROVE VALUE ADDED TAX LAW

3.1. PRINCIPLES AND DIRECTIONS FOR IMPROVING VALUE ADDED TAX LAW

3.1.1. Principle of completion

- Principle of fairness

Fairness is an objective requirement in the process of human development as well as in the development process of taxation in particular. In the field of taxation, fairness must be expressed first of all in the division of tax burdens. Because fairness in the implementation of tax obligations can create motivation in production and business activities as well as maintain political institutions. However, up to now, the criteria for assessing fairness in taxation have many different opinions.

According to economists, tax fairness must be based on the principles of vertical and horizontal fairness. Specifically, if individuals and businesses have the same conditions, they will be treated equally in fulfilling their tax obligations, which is horizontal fairness; and if those who are more capable of paying taxes must pay higher taxes, which is vertical fairness or also known as progressive fairness [28, p. 143].

From a legal perspective, we believe that the fairness of taxation is not only implemented on the principle of fairness in the horizontal and vertical dimensions, that is, not only solving the fairness between those who have tax obligations with each other but also ensuring fairness between the state and those who provide financial resources to the state through taxation. Because they are the ones who nurture the entire state apparatus through legal actions.

- production and business activities - are recognized and protected by the state. This fairness is extremely important, because from a legal perspective, taxes are considered an obligation arising between subjects and the state in the relationship of public law, but in reality this guarantee is rarely set or is set at a very vague level.

The issue of ensuring fairness between the state and taxpayers depends largely on determining the time of tax liability in general and VAT liability in particular. Because if the time of VAT liability is determined too early, it will greatly affect the economic interests of taxpayers, not creating motivation for production and business development, and this in turn directly affects the source of tax support. On the contrary, if the time of VAT liability is determined too late, it will not ensure a stable and solid source of revenue for the state budget, nor will it promote the function of indirect taxes to mobilize a part of the national income for the state budget in advance to promptly meet the spending needs and socio-economic development of the state. Therefore, when determining the time of VAT liability, it is necessary to harmoniously and satisfactorily resolve the relationship between the state and enterprises, there must be a necessary sharing between benefits and responsibilities. Of course, it must also be seen that fairness in taxation cannot escape the perception and viewpoint of each government in each specific period.

- Principle of efficiency and convenience

The provisions of VAT law must ensure efficiency in two aspects: efficiency for the economy and efficiency of tax administration or efficiency of tax collection organization.

Effect on the economy: from an economic perspective, the Government's taxation behavior, regardless of its form, has the effect of reallocating social resources and is influenced by two factors that tend to

The heterogeneous movement is the state and the forces of the market. This impact can be direct or indirect depending on the nature and elasticity of the supply and demand relationship in the market.

However, government taxation is not simply a redistribution of income from taxpayers to the state, but also has side effects on the overall efficiency of the economy. These side effects can occur in a positive or negative direction.

The negative trend is known as the overall efficiency-reducing effect of taxes on the economy, or tax distortion.

The positive trend is called the overall efficiency-enhancing effect of taxes on the economy, or the positive side effects.

When developing regulations, careful consideration is needed to limit the impact of tax efficiency reduction on the economy.

Tax administration efficiency: Tax collection always incurs costs, including direct management costs of tax authorities and indirect costs borne by taxpayers. If the costs of tax collection are higher than or equal to the amount of tax collected, then clearly such tax collection is ineffective.

Efficiency must be based on convenience. Convenience is expressed in ease of implementation, ease of management and the ability to adapt to sensitive and volatile economic activities.

- Realism principle

Taxes are mobilized to concentrate financial resources to meet the spending needs of the state. The method of mobilizing concentrated resources of the tax is a compulsory, non-refundable financial transfer method. In particular, the source of concentrated mobilization through taxes is the total social product and national income created in the country. Regarding VAT, in principle, if there is no revenue, there is no tax obligation and vice versa from the time

Once revenue is determined, tax liability is also incurred. This is a very basic principle that should be considered the fundamental principle for determining the time when VAT liability arises.

3.1.2. Direction of completion

The continued improvement of VAT law is not only to overcome the problems arising from the current situation of adjusting VAT law but also stems from the development requirements of the market economy, the transformation of economic structure as well as the need to expand international economic cooperation and the current globalization trend.

In the trend of international economic integration and globalization, the goal of protection and revenue generation through tariffs is no longer effective, revenue from export and import taxes will gradually narrow, while the ability to increase revenue from direct taxes is also very limited, because the income level of people in our country is very low, so the most feasible solution in the immediate future is to enhance the role of indirect taxes, in which the role of VAT is extremely important. Therefore, the improvement of VAT law and the mechanism to ensure implementation is set out as a necessity to ensure the enhancement of the role of compensating for the decline in state budget revenue.

Based on the issues arising from the current situation of adjusting VAT law and the requirements for perfecting VAT law, perfecting VAT law in our country is now a necessity. The perfection must ensure the following basic directions:

- First of all, the VAT law must accurately and scientifically reflect the nature of VAT, ensuring that VAT is an indirect tax with a continuous nature and high economic neutrality, levied on the transfer of goods and provision of services calculated on the added value of goods and services in the process of production, circulation to consumption according to the deduction method. Because we believe that one of the leading criteria for evaluating

The scientific nature of a legal document is whether that document correctly reflects the nature of the phenomenon or not? And only when it correctly reflects the nature of the phenomenon, will the law have enough power to regulate the social relations that need to be regulated.

- Perfecting the VAT law must be closely linked to and based on perfecting the VAT policy. In general, the tax law system in general and the VAT law in particular have an organic relationship with tax policies and the state's economic and financial policies. Tax law reflects, expresses and aims to implement tax policies, contributing to ensuring the implementation of tax objectives and functions such as ensuring revenue for the state budget, performing the function of macro-economic adjustment through income regulation and production regulation. Therefore, perfecting the VAT law cannot be separated from and must be based on perfecting the VAT policy.

- Expand the scope and increase the scale of the VAT Law by introducing some contents that are currently stipulated in the documents guiding the implementation of the law into the VAT Law, to ensure the principle: without tax law, there is no tax obligation, tax law is the legal basis for the arising of tax collection and payment obligations and to be consistent with the authority of the National Assembly as stipulated in the Constitution as well as to ensure the actual power of the National Assembly in deciding on national financial and monetary policies, regulating, amending or abolishing taxes and at the same time to meet the inherent requirements of the VAT law adjustment mechanism in our country today. Of course, when perfecting the VAT law, it is necessary to take into account the objective aspect that always exists a contradiction between the requirement to adjust and the actual adjustment ability of the law. The problem is to handle this objective contradiction delicately and appropriately to ensure the universal value of the VAT law. Although this is a very difficult problem for lawmakers in the economic field.

- Perfecting VAT law towards simplicity, stability, fairness, efficiency and meeting the current trend of integration and globalization, at the same time

At the same time, it is necessary to promote the role of VAT in ensuring revenue for the state budget in the context of tariff reduction and the role of the state in adjusting the macro economy and society in the direction of encouraging production development, especially encouraging export activities including goods and services, creating conditions for the development of the agricultural economy...

- Completing the VAT law must be associated with the completion of the entire tax law system, especially the Special Consumption Tax law and the Import-Export Tax law. The VAT law is a part of the tax law system and the scope of VAT includes both import-export activities and production and trading activities of special consumption goods. Therefore, when completing the VAT law, it is also necessary to pay due attention to this issue to ensure the unity, synchronization and mutual "coverage" of the entire tax law system.

- Focus on legal technicalities by economic and financial categories and concepts of tax that must be transformed, expressed and demonstrated in legal language in the provisions of VAT law, in which the use of legal definitions is extremely necessary and especially the legal aspects of VAT must be properly respected to ensure the implementation of VAT obligations, at the same time, enhancing the value of preventing violations of VAT law.

3.2. SOLUTIONS TO IMPROVE THE LAW ON VALUE ADDED TAX AND SOME RECOMMENDATIONS TO AMEND AND SUPPLEMENT THE LAW ON VALUE ADDED TAX

3.2.1. Amending and supplementing a number of provisions on the scope of regulation of value added tax law

Regarding the subjects subject to VAT, the subjects currently stipulated by VAT law as not subject to VAT must be converted into subjects exempted from VAT. Because as analyzed, when talking about subjects not subject to VAT, it means talking about subjects not subject to VAT, while when talking about subjects

VAT exemption refers to goods and services that are subject to VAT law but are decided by a competent state agency, specifically the National Assembly - the highest state power agency, to be exempted from tax obligations by a special law.

On the other hand, to ensure that VAT is a broad-based consumption tax with high economic neutrality and continuity, the VAT law needs to narrow the scope of VAT exemption by transferring some "goods and services" currently in the category of "not subject to VAT" to the category of subjects subject to VAT or eliminating some goods and services currently in this scope, i.e. expanding the subjects subject to VAT.

In order to adapt to the economic restructuring as well as promote the modernization of agriculture and rural areas, bringing agriculture to a step forward in large-scale production as the Party and State's guidelines have put forth, we find it necessary to add to the VAT taxable objects items that are products in the agricultural production stage to ensure the implementation of VAT in a continuous and unified manner in all production and business sectors. At the same time, create conditions for production and business activities serving agricultural production activities to have the right to deduct input VAT such as materials, fertilizers, pesticides, agricultural machinery and equipment, etc.

Based on the above analysis and comments, we recommend: Article 4 needs to be amended as: Subjects exempted from value added tax .

Transfer some goods and services in Article 4 to taxable subjects, specifically:

- Products of cultivation, livestock, aquaculture, and seafood that have not been processed into other products or have only undergone conventional preliminary processing by organizations and individuals that produce, catch, and sell them and at the import stage;

- Products are livestock breeds and plant varieties;

- Salt products;

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