What are amendments to the regulations on value-added tax refund for exports in Vietnam from July 1, 2025?

What are regulations on value-added tax refund for exports in Vietnam?

Based on Clause 2, Article 12 of the Value-added Tax Law 2008 amended by Clause 3, Article 1 of Law No. 106/2016/QH13, regulations on value-added tax refund for exports are as follows:

- Business establishments having exported goods and services in a month or quarter and an uncredited input value-added tax amount of at least 300 million VND are eligible for monthly or quarterly value-added tax refunds, except for goods imported for re-export and exports not conducted at customs areas as stipulated in the Customs Law.

- Perform tax refund first, audit later for taxpayers who manufacture goods for export and have not violated tax, customs laws for two continuous years; taxpayers not considered at high risk according to the Tax Management Law 2019.

What are amendments to the regulations on value-added tax refund for exports in Vietnam from July 1, 2025?

Based on Clause 1, Article 15 of the Value-added Tax Law 2024 (effective from July 1, 2025), regulations on value-added tax refund for exports are as follows:

Value-added Tax Refunds

1. Regulations on refunds for exports are as follows:

a) Business establishments having exported goods and services in a month or quarter with an uncredited input value-added tax amount of at least 300 million VND are eligible for monthly or quarterly refunds, except in cases where goods are imported and then exported to another country;

b) Business establishments in a month or quarter having both exported goods and services and domestically consumed goods and services must separately account for input value-added tax used for producing and trading in exported goods and services. If separate accounting is not possible, the input value-added tax for exported goods and services is determined based on the ratio of revenue from exported goods and services to total taxable revenue of the refund period. The refund period is determined from the tax period where the input value-added tax remains uncredited continuously and has not been refunded to the tax period requesting a refund.

The input value-added tax for exported goods and services (including separately accounted input value-added tax and input value-added tax determined based on the aforementioned ratio) if, after offsetting with the value-added tax payable on domestically consumed goods and services, remains at least 300 million VND, the business establishment is eligible for a refund for exported goods and services. The refunded value-added tax of exported goods and services shall not exceed 10% of the revenue from exported goods and services of the refund period. The input value-added tax already determined for exported goods and services but not refunded due to exceeding 10% of the revenue from exported goods and services of the previous refund period can be deducted in the subsequent tax period to determine the refundable value-added tax of exported goods and services for the next refund period.

...

Accordingly, the Value-added Tax Law 2024 amends and supplements certain points concerning the value-added tax refund for exports as follows:

- Adds stipulation requiring business establishments to separate the accounting of input value-added tax used for producing and trading in exported goods and services when they have both exported and domestically consumed goods and services in a month or quarter.

- Adds a stipulation that if separate accounting is not possible, input value-added tax for exported goods and services is determined based on the ratio of revenue from exported goods and services to total taxable revenue of the refund period.

- Stipulates that the refunded value-added tax for exported goods and services shall not exceed 10% of the revenue from exported goods and services of the refund period.

- Stipulates that input value-added tax already determined for exported goods and services but not refunded due to exceeding 10% of the revenue from exported goods and services of the previous refund period can be deducted in the subsequent tax period to determine the refundable value-added tax for exported goods and services in the next refund period.

What are amendments to the regulations on value-added tax refund for exports in Vietnam from July 1, 2025? (Image from the Internet)

Which entities are the value-added taxpayers under the new regulations in Vietnam?

Based on Article 4 of the Value-added Tax Law 2024 (effective from July 1, 2025), the value-added taxpayers are defined as follows:

- Organizations, households, and individuals producing and trading in goods and services subject to value-added tax (hereinafter referred to as business establishments).

- Organizations and individuals importing goods subject to value-added tax (hereinafter referred to as importers).

- Organizations and individuals producing and trading in Vietnam who purchase services (including services associated with goods) from foreign organizations without a permanent establishment in Vietnam, and individuals abroad who are non-residents in Vietnam, except as provided in Clauses 4 and 5 of this Article; organizations producing and trading in Vietnam who purchase goods and services to conduct exploration, development, and exploitation of oil and gas resources from foreign organizations without a permanent establishment in Vietnam, and individuals abroad who are non-residents in Vietnam.

- Foreign suppliers without a permanent establishment in Vietnam who engage in e-commerce and digital-based business activities with organizations and individuals in Vietnam (hereinafter referred to as foreign suppliers); organizations managing foreign digital platforms that deduct and pay on behalf of the tax obligations of foreign suppliers; organizations doing business in Vietnam applying the value-added tax deduction method on services purchased from foreign suppliers without a permanent establishment in Vietnam via e-commerce or digital platforms that deduct and pay on behalf of the tax obligations of foreign suppliers.

- Organizations that manage e-commerce trading floors and digital platforms with payment functionalities undertake tax deduction, replacement tax declaration for business households, and individuals conducting commerce on the e-commerce floor and digital platform.