Customs Department Guidance: Handling Overpaid VAT after HS Code Correction and Import Duty Adjustment via AMA Declaration
RegHub explainer by New MarketerLast updated:
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The Customs Department responds to an enterprise's question about handling a situation where customs authorities notify the enterprise of numerous 2024 and 2025 import declarations with incorrect HS codes, resulting in wrong VAT (reduced from 10% to 8%) and import duties (increased from 3% to 5%). The enterprise has paid the additional import duties but is unsure how to handle the overpaid VAT. The Customs Department guidance: Under Article 60(1) of Tax Administration Law No. 38/2019/QH14, overpaid VAT is handled in three ways: (1) offset against other outstanding tax debts; (2) deducted from the next tax payment; or (3) refunded when the enterprise has no outstanding tax debts. When offsetting against outstanding debts, no late-payment interest is charged for the period from the date of overpayment to the date of offset. Importantly, for VAT to be refunded through customs, the enterprise must first file an adjustment with the domestic tax authority (tax office) regarding previously credited VAT input, before requesting the refund from customs. After issuing a refund decision, customs provides information to the tax authority.
Enterprise's Situation
In 2026, customs authorities notify an enterprise of numerous import declarations from 2024 and 2025 with incorrect HS codes, resulting in:
- VAT: reduced from 10% to 8% (overpaid VAT)
- Import duties: increased from 3% to 5% (underpaid import duties)
The enterprise has filed AMA (adjustment) declarations and paid the additional import duties. The unresolved issue is how to handle the overpaid VAT.
Customs Department Guidance
Legal Basis 1: Article 60(1) of Tax Administration Law No. 38/2019/QH14
When the amount of tax, late-payment interest, or penalties already paid exceeds the amount due, it is handled in one of three ways:
- Offset against outstanding tax, late-payment interest, or penalty debts
- Deducted from the next tax payment
- Refunded when the taxpayer has no outstanding tax debts
Important note: When offsetting against outstanding debts, no late-payment interest is charged for the period from the date of overpayment to the date of offset by the tax authority.
Legal Basis 2: Circular No. 121/2025/TT-BTC (Article 1, Clause 60)
Amends Article 132 of Circular 38/2015/TT-BTC on handling VAT refund amounts:
VAT refund procedure through customs:
- The enterprise files an adjustment with the domestic tax office managing the enterprise regarding previously credited input VAT
- Then requests a VAT refund from customs
- After issuing the refund decision, customs provides information to the tax authority
Enterprises should contact the customs authority handling the declarations for detailed guidance.