Mid course internship report the process of vat input and output's nature checking for vat refund for a client at deloitte vietnam

FOREIGN TRADE UNIVERSITY HO CHI MINH CITY CAMPUS MID-COURSE INTERNSHIP REPORT THE PROCESS OF VAT INPUT AND OUTPUT'S NATURE CHECKING FOR VAT REFUND FOR A CLIENT AT DELOITTE VIETNAM Stu

FOREIGN TRADE UNIVERSITY HO CHI MINH CITY CAMPUS

MID-COURSE INTERNSHIP REPORT

THE PROCESS OF VAT INPUT AND OUTPUT'S NATURE CHECKING FOR VAT REFUND FOR

A CLIENT AT DELOITTE VIETNAM

Student: Dang Thi Thao Ngan Student ID: 1911155054

Intake: 58

Class: K58CLCS5 Instructor: Ms Nguyen Thi Thu Thao

Ho Chi Minh City, August 2022

FOREIGN TRADE UNIVERSITY HO CHI MINH

CITY CAMPUS

MID-COURSE INTERNSHIP REPORT

THE PROCESS OF VAT INPUT AND OUTPUT'S NATURE CHECKING FOR VAT REFUND FOR

A CLIENT AT DELOITTE VIETNAM

Student: Dang Thi Thao Ngan Student ID: 1911155054

Intake: 58

Class: K58CLCS5 Instructor: Mr Nguyen Thi Thu Thao

Ho Chi Minh City, August 2022

FOREIGN TRADE UNIVERSITY SOCIALIST REPUBLIC OF VIETNAM

HO CHI MINH CITY CAMPUS Independence - Freedom - Happiness

MIDTERM PROFESSIONAL REPORT REMARKS

Student’s full name: DANG THI THAO NGAN

Student code: 1911155054

Name of the report: THE PROCESS OF VAT INPUT AND OUTPUT'S

NATURE CHECKING FOR VAT REFUND FOR A CLIENT AT DELOITTE VIETNAM

Assessment of compliance with regulations, progress and work ethics (Maximum of 1.0 point, with one decimal number:

Remarks (circle the appropriate one):

I The student has completed the report properly under the guidance of the supervisor The supervisor is responsible for the title, purpose, subjects, scope and research method(s), and chapters’ titles, and main headings of the report (3 digits): 0.8-

1.0 point(s)

2 The student has failed to carefully follow the supervisor’s instructions The supervisor is responsible for chapters’ titles, purpose, subject, scope and research method(s), and titles and main headings of the report (2 digits): 0.5-0.7 point(s)

3 The student has failed to carefully follow the supervisor’s instructions The supervisor is not responsible for the report: 0./-0.4 point(s)

4 The student has totally failed to follow the supervisor’s instructions The supervisor rejects the submission of the report: 0 point

Ho Chi Minh City, J occu oceeceeceneees

Supervisor (Signature with full name)

Nguyen Thi Thu Thao

INTERNSHIP’S ORGANIZATION REMARKS

I would like to declare hereby that this report is my independent work and that all sources indicated herein are fully listed in the references I also ensure that the data used and findings pinpointed in this report are honest and ethical, which have never been published by any other author’s works I understand the consequences caused by violations of copyright and would hereby take responsibility for the contents of this report in case of such violations

Ho Chi Minh City, August 2022

Author

Dang Thi Thao Ngan

First of all, the author gratefully acknowledges the assistance of teachers at Foreign Trade University Ho Chi Minh City Campus for imparting essential and valuable knowledge, which has created the fundamental base for this internship report

In particular, the author would like to express my most profound appreciation to express sincere thanks to Nguyen Thi Thu Thao, who wholeheartedly guided and provided constructive criticism and advice to help the author complete this internship

report

Besides, this report would not have been possible without the relentless support and nurturing of the colleagues, mentors, and managers at Deloitte Vietnam Com., Ltd who have created this precious opportunity for the author to grow and always led and instructed the author to learn

Despite putting a lot of effort into the report, shortcomings are inevitable due to the limitation of time and the author's lack of practical experience and professional knowledge Therefore, the author hopes to receive empathy, always welcome, and appreciate all the constructive advice from the readers that help improve the report

Author

Dang Thi Thao Ngan

TABLE OF CONTENTS

PREFACE wl CHAPTER 1: [INTRODUCTION TO DELOLTTE VIETNAM 2

LL, General ÏHÍOFHHGÍÌOH HQ nh HH HH TH nh hy 2

ID n9 200i c8 n ẢẢ 2

II oi càai an 4 3 1.2 VISÍOH, VNÏH©S, QHỈ SÍPQÍGĐV, ĂĂĂ On TH HH uy su, 4 1.3 The services offered by Del0iIf: cciesessiESxE s2 s s3 si 4 1.3.1 Auditing ca - 4 1.3.2 Enterprise rIsk cOnfrỌ SGTVICG L2: 22 12121 HH nhàn há c2, 4

II Edvoi ii 7 5 1.3.4 Training and human resource managernenf s€TvICes 5 1.3.5 Other đnancial and rIsk advISOTy SGTVICCS 2L 2L 2L 2 2S nà, 5 1.3.6 Industrles, sectors, and cÏIeHifS: L c2 2L 21 2122122112121 21 HH này 5 1.4 Organization and human resources 6 1.5 Business outcomes [Tom 2016 10 ZOD LD cccscceccersesscersessssssesssssssssessenssessessssesssseeess 7 1.0 THÍCTHSÌID SHHHHHPI, Q2S HH HH HH HH TH HH TH HH HH Hy HH ng nay 9 CHAPTER 2: THE PROCESS OF VAT INPUT AND OUTPUT'S NATURE CHECKING FOR VAT REFUND FOR A CLIENT AT DELOITTE VIETNAM

11 2.1 The process of VAT input and output's nature checking for VAT refund fora CÍeHf d{ DeloiIfe WÏGÍHAHI Ăn HT HH HH HH Hy gọn nh na il 2.1.1 Overview of VAT refund and the process of VAT input and output's nature j3 0 7 ma ll

2.1.2 Determine the legal basis issued by the authorities for VAT refund

2.1.3 Prepare and check the list of dossiers required in the export and import package

of documents eee ee eee eee 14 2.1.4 Check and reconcile the consistency of required documents in the package .15 2.1.5 Evaluate rIsks and summar1ze key Índ1nøs - - T11 E1 22222111111 sxy 16

2.2 Comparison between some aspects of the current procedure and that of the theory

18

2.3 The general assessment of the process of nature checking VAT input and output

REFERENCE G ccssscssscssnscsnscssscssnsscnsssnssssssscassonsessssscassonssssssssssssassssssssssecssnsees 25

LIST OF ABBREVIATIONS

Abbreviation Meaning

B.L Bill of lading

C.D Custom Declaration

CEO Chief Executive Officer

DIT Deloitte Touche Tohmatsu Global

FCWT Foreign Contractor Withholding Tax

FOC Free of charge

FY Fiscal Year

ISD Immigration Service Delivery

Lao PDR Lao People’s Democratic Republic

MOIT/DOIT | Ministry/ Department of Industry and Trade

P.L Packing list

P.O Purchase Order

PAT Profit after tax

SOGs Sale of goods

TC Total Cost

TR Total Revenue

VACO Vietnam Auditing Company

VAT Value-added tax

WTO World Trade Organization

LIST OF TABLES Table 1: General information of Deloifte V1etnam 222222 1 2222 2221 22, 2

Table 2: Sectors and Industries of Deloitte Vietnam's clients 6 Table 3: Total revenue, Total cost and Profit after tax of Deloitte from 2019 to 20217 Table 4: Summary of tasks and timeline divided by the dimenslions 10

Table 6: The risk indicators for forecasted 1sSU€S 2 L2 2222221 222222 17

Table 7: Differences between theory and reality in terms of VAT and VAT refund 18

PREFACE

In recent years, with the inevitable trend of globalization, many countries worldwide have witnessed a substantial transformation of foreign trade activities Besides becoming a WTO member and signing many free trade agreements in Vietnam, the extension and operation of more and more foreign businesses have significantly contributed to the growth of Vietnam's economy over the past decade Effective global trade management is critical to enabling a company's global supply chain However, with today's increasing trade sophistication, complexity, and rapid change in trade policy enforcement, regulations, technology, and supply chains, the trade management program of many foreign businesses can’t keep up In other words, global trade is a multifaceted area that requires a high degree of practical support on both fiscal and non-fiscal regulations duties and taxes by trustworthy financial companies are essential for those foreign companies

Acknowledging the importance of assisting in building effective and efficient global trade management for foreign businesses in the current context, as well as the author's interest in the “Taxation and Tax system of Vietnam” subject in the studying program, the author has applied to the Global Trade Advisory Department (GTA) of Deloitte Vietnam Com., ltd - a very famous service firm in financial solutions - for the midterm internship

Arising from the reality mentioned above and the work scope done during the internship, the author has decided to choose the topic "The process of VAT input and output's nature checking for VAT refund for a client at Deloitte Vietnam" to analyze in this report The report comprises the following three chapters:

Chapter 1: Introduction to Deloitte Vietnam

Chapter 2: The process of vat input and output's nature checking for vat refund for a client at Deloitte Vietnam

Chapter 3: Internship reflections and recommendations for the process

CHAPTER 1: INTRODUCTION TO DELOITTE VIETNAM

1.1 General Information

Deloitte is a prominent international provider of consulting, tax & legal, financial advising, audit & assurance, and associated services, which now employs over 312,000 people in 150 countries and territories Deloitte has expanded in size and diversity throughout more than 150-year history while maintaining the same shared culture

English name Deloitte Vietnam Company Limited

Vietnamese Công Ty TNHH Deloitte Việt Nam

name

Abbreviation Deloitte Vietnam Co., Ltd

Logo Deloitte

Address 16 - 18th Floor, Times Square Building, 57-69F Dong Khoi

Street District 1, HCMC, Vietnam

of the names of these three co-founders to commemorate their dedication

In 1845, Mr William Welch Deloitte established the first audit office in London

In 1990, he and Mr George Touche founded Deloitte & Touche, together with Mr Nobuzo Tohmatsu jointly established Deloitte Touche Tohmatsu company in 1993 The year 2010 marked an important milestone when Deloitte Touche Tohmatsu Services,

Inc became a multinational company, offering auditing, consulting, tax, and advisory services to more than 1/5 of the world's large corporations, companies, and organizations

Deloitte Southeast Asia consists of member firms of DTT operating in 11 countries in Southeast Asia, including Brunei, Cambodia, Guam, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand, Laos, and Vietnam, with 290 Partners and more than 7,400 employees Member firms in Deloitte Southeast Asia can leverage and mcorporate resources serving the customers and markets in the region to improve the quality of service

1.1.2 Deloitte Vietnam:

According to Decision No 165-TC/QD.TCCB of the Minister of Finance on 13/05/1991, Vietnam Auditing Company ("VACO") — now Deloitte Vietnam was officially established It is considered the first audit and financial consulting company

After completing the ownership and management transformation model on May

7, 2007, VACO officially changed its name to Deloitte Vietnam Co., Ltd to become a member of Deloitte Southeast Asia There is a branch office in Ho Chi Minh City in addition to the head office of Deloitte Vietnam in Hanoi

Since its official establishment, Deloitte Vietnam has significantly changed the previous look of VACO Vietnam The development strategies, vision, as well as services, expertise, and environment of Deloitte Vietnam all comply with Deloitte's global requirements, consistent with international standards, creating an active and professional manner

Clients who come to Deloitte Vietnam will be served by the contribution of more than 700 employees working in Hanoi and Ho Chi Minh City offices, as well as the full strength of Deloitte Southeast Asia member companies coming from Brunei, Cambodia, Guam, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, and Thailand Through its extensive network, firm reputation, and the satisfaction of previous customers, Deloitte's strength is transparency and accountability and using expertise for a wide range of clients, helping them solve their concerning situations That is why more and more customers choose Deloitte as a reliable partner to corporate And with what has been done in the past 20 years, Deloitte promises to be one of the leading auditing and consulting firms in the Vietnamese market in the future

1.2 Vision, values, and strategy

In order to deliver excellence across all of the services offered by the member firms, Deloitte's vision and strategy, based on the collaboration of leadership and member firm partners from around the world, is centered on working “Together As One” across geographic, functional, and business borders

Deloitte's vision is the aspiration to be the Standard of Excellence, the first choice

of the most sought-after clients and talent, which has been unchanged for many years Its shared values are also timeless and strictly describe the core principles that distinguish Deloitte's culture: Integrity, Outstanding value to markets & clients, Commitment to each other, and strength from cultural diversity

1.3 The services offered by Deloitte:

1.3.1, Auditing services

- Auditing financial statements for tax purposes or special purposes

- Compliance audit

- Auditing activities and reviewing information on financial statements

- Auditing financial information based on pre-agreed procedures

1.3.2, Enterprise risk control service

- Review and evaluate the internal control system

- Control and assess information technology system risks

1.3.3 Tax consulting services

- Making international tax declarations and consulting

- Tax advice for the company's purchase and sale and transfer pricing procedures

- Reviewing corporate tax compliance

- Supporting investors to participate in the market and planning tax strategies 1.3.4 Training and human resource management services

- Organizing human resources

- Human Resource Management

1.3.5 Other financial and risk advisory services

- Consulting on capital mobilization and business

- Comprehensive review of business operations

- Consulting services and providing business solutions

- Consulting on mergers and acquisitions, business dissolution, and market research consulting

1.3.6 Industries, sectors, and clients:

Deloitte is one of the companies providing auditing and financial consulting services with the most significant number of clients in Vietnam As of the first half of 2022, Deloitte has over 1000 clients with diverse client portfolios:

Table 2: Sectors and Industries of Deloitte Vietnam's

clients Source: Deloitte's Internal Source

1.4 Organization and human resources

Industrials

I ndustria ial | Banki a ing & Life Civil

Automotive | Products & Capital Technology

Constructio Markets

n

Insurance | Healthcare} Security Media &

Products Metals

& Justice Entertainment

Hospitality & | Utilities & | Real Estate Donor

Services Renewable Organizatio

Deloitte Vietnam provides services to a large number of customers across the country, with two offices in Hanoi and Ho Chi Minh At the head of the company is the general director, who is responsible for overseeing all activities of the departments in the company Each department is owned by domestic and foreign partners (Partners) with extensive experience and expertise to ensure that Deloitte operates under a unified and most effective standard In addition, there are departments like a company providing

regular services, such as: human resources, information technology, tax, auditing, financial advisory, consulting, etc., helping to create a complete organizational structure that always ensures Deloitte Vietnam operates smoothly and efficiently The management team of Deloitte is demonstrated in the chart below:

Chairwomen

CEO

Audit & Assurance Risk Advisory Tax & Legal Financial Advisory

Client Services

Japanese Services Chinese Services Korean Services European Services

Figure 1 The management team of Deloitte Vietnam

Source: Deloitte's Internal Source

1.5 Business outcomes from 2016 to 2021

During the past decade, revenue from all Deloitte services has increased every year, including in years of the COVID 19 pandemic The company's performance from 2018

to 2021 will be summarized through the total revenue, cost, and profit after tax below:

FY 2018 FY 2019 FY 2020 FY 2021

TR 824,310 929,268 997,410 1,059,903

TC 797,726 876,948 930,395 991,071 PAT 10,793 39,779 53,360 46,790