Coffee exporters have recently proposed to relevant authorities to suspend value added tax (VAT) refund for a year, starting from November, as a temporary solution to ease the burden on them.
According to a decision of the Ministry of Finance, from July 1, companies will only receive tax refund after inspection. However, companies believe this will be time-consuming and cause difficulties for them as they usually have to buy coffee via several intermediaries.
If tax inspectors get stuck at any phase during inspection, the whole process will be stalled. Already, most coffee export companies have not received their VAT refunds so far. Many businesses had to stop trading coffee because of difficulties in VAT refund.
Recently some businesses of the Vietnam Coffee Exporters Club held a meeting in Ho Chi Minh City to discuss measures to tackle these difficulties.