The value-added tax (VAT) refund is an administrative tax procedure designed to seek reimbursement from tax authorities for the value-added tax associated with the acquisition of goods and services for production and business operations, which had been previously paid by the taxpayer on behalf of the purchaser.
CASES AND CONDITIONS FOR VAT REFUNDS
- Taxpayers who pay VAT using the tax deduction method are eligible for a refund if the input VAT has not been fully deducted in the current month or quarter and can be carried forward to subsequent periods.
- Taxpayers who have registered for VAT payment using the deduction method and are engaged in new investment projects during the initial investment phase with unclaimed input VAT on goods and services purchased for investment and the remaining VAT exceeding three hundred million VND are entitled to a value-added tax refund.
- Taxpayers who, within a given month or quarter, engage in the export of goods or services and possess unclaimed input VAT exceeding three hundred million Vietnamese Dong are eligible for a monthly or quarterly value-added tax refund. This excludes cases involving imported goods for export or exported goods without exportation conducted at the customs area following customs law provisions.
- Taxpayers who pay VAT using the tax deduction method qualify for a value-added tax refund when undergoing changes in ownership, company transformation, mergers, consolidations, divisions, split-ups, dissolution, bankruptcy, or termination of operations, provided there is either an excess of paid VAT or unclaimed input VAT.
- Foreigners or Vietnamese citizens residing abroad, holding passports or immigration documents issued by foreign authorities, are eligible for a VAT refund on goods purchased in Vietnam and transported with them upon departure.
- Programs and projects funded through non-refundable official development assistance (ODA), non-refundable aid, or humanitarian aid: The program/project owner or the main contractor, as designated by the foreign donor, may request a refund of the VAT paid for goods and services procured in Vietnam for the program/project. Organizations in Vietnam using non-refundable aid or humanitarian aid funds from foreign organizations or individuals to acquire goods and services for non-refundable aid or humanitarian aid programs/projects in Vietnam are also eligible for a VAT refund on such goods and services.
- Entities entitled to diplomatic privileges and immunities, as per the laws governing diplomatic privileges and immunities when procuring goods and services in Vietnam for use, are eligible for a refund of the VAT stated on the VAT invoice or payment document indicating the payment inclusive of VAT.
[sc name=”footer-content-en”
Read more relevant content value-added tax refunds:
- Conditions and procedures – For value-added tax refunds according to vietnam’s regulations
- Cases and conditions – For value-added tax refunds according to vietnam’s regulations
- Application – For value-added tax refunds according to vietnam’s regulations
Read more:
- Value-added tax 0%
- Tax management – tax planning in Vietnam – Properly comply to optimize your long term business
- Investment in Vietnam – incentives on corporate income tax (cit)
- Exclusive incentives for business in software activities
- Regime of archived accounting documents and financial reports
- Corporate financial management
- Internal audit
- Related-party transactions – what you need to know
- Transfer pricing and related transactions by laws – declaration of transfer pricing information
- Payroll outsourcing services
- Corporate Compliance Checklist
- Taxable Incomes From Wages And Remunerations
- FDI companies in Vietnam – managing the required compliance procedures
- Business compliance management advisory services
- DUNS number – standard worldwide and unique numeric identifier for business
