What are cases of VAT refund in Vietnam from July 1, 2025?

What are cases of VAT refund in Vietnam from July 1, 2025?

Based on Article 15 of the Law on Value-Added Tax 2024 (effective from July 1, 2025), the circumstances for a VAT refund are stipulated as follows:

(1) For export:

- Business establishments with exported goods and services in a month or quarter, if the input VAT amount not yet fully deducted is from 300 million VND or more, are entitled to a VAT refund on a monthly or quarterly basis, excluding cases where goods are imported and then exported to another country;

- Business establishments that in a month or quarter have both exports and domestic consumption goods and services must separately account for the input VAT used for the production and business of exported goods and services.

In cases where separate accounting is not possible, the input VAT of exported goods and services is determined by the ratio of revenue from exported goods and services over the total revenue of taxed goods and services for the refund period. The refund period is determined from the tax period with a continuous undeducted input VAT amount not yet refunded to the tax period when a refund request is made.

- The input VAT for exported goods and services (including separately accounted input VAT and input VAT determined by the aforementioned ratio), after offsetting with the payable VAT of domestically consumed goods and services, if remaining from 300 million VND or more, the business is entitled to a refund for exported goods and services.

- The refunded VAT amount for exported goods and services does not exceed 10% of the revenue from exported goods and services in the refund period.

- The input VAT determined for exported goods and services but not refunded due to exceeding 10% of revenue from exported goods and services in the previous refund period is carried over to the next tax period to determine the refunded VAT amount for the next refund period’s exported goods and services.

(2) For investment:

- Business establishments registered for VAT payment under the credit method with investment projects (new investment projects, expansion investment projects) as per investment laws (including investment projects divided into multiple investment phases or components, excluding cases where investment projects do not form fixed assets of the enterprise) that are in the investment phase or oil and gas exploration and development projects during the investment phase with input VAT incurred but not yet refunded will offset against the payable VAT from ongoing production and business activities (if any). If, after offset, the input VAT of the investment project remains undeducted from 300 million VND or more, a VAT refund is granted.

- The completion date of an investment project or of an investment phase or component is the date revenue arises for the investment project or phase/component. Revenue as prescribed in this clause does not include trial production phase revenue, financial activity revenue, or liquidation revenue of project raw materials.

(3) Business establishments exclusively producing goods, providing services subject to a 5% VAT rate, if the input VAT amount not yet fully deducted reaches 300 million VND or more after 12 consecutive months or 04 consecutive quarters, a VAT refund is granted; if the establishment produces goods, provides services subject to multiple VAT rates, refunds are made according to an allocation rate as per the Government of Vietnam's regulation.

(4) Business establishments paying VAT by the credit method are entitled to a VAT refund upon dissolution or bankruptcy if excess VAT has been paid or the input VAT remains undeducted.

In cases where a cooperative group paying tax by the credit method converts to a cooperative, the cooperative inherits the excess paid VAT or the undeducted input VAT of the cooperative group for deduction and refund according to regulations.

(5) Foreigners, overseas Vietnamese holding passports or international travel documents are eligible for a tax refund for goods purchased in Vietnam and carried out when leaving the country.

(6) For programs or projects utilizing official development assistance (ODA) non-refundable capital or non-refundable aid, humanitarian aid:

- Program and project owners or main contractors and organizations designated by foreign sponsors managing programs or projects utilizing non-refundable ODA are refunded the VAT paid for goods and services purchased in Vietnam for such programs, projects;

- Organizations in Vietnam using non-refundable aid funds, humanitarian aid funds from foreign organizations or individuals to purchase goods and services serving non-refundable aid, humanitarian aid projects in Vietnam are refunded the paid VAT for such goods and services.

(7) Subjects entitled to diplomatic immunities as per diplomatic laws, when purchasing goods and services in Vietnam for use, receive a refund for the paid VAT as recorded on the VAT invoice or payment document indicating an inclusive VAT.

(8) Business establishments with decisions for VAT refunds from competent authorities or according to international treaties to which the Socialist Republic of Vietnam is a member are eligible for refunds.

What are cases of VAT refund in Vietnam from July 1, 2025? (Image from Internet)

Vietnam: What does the tax refund claim include?

Based on Clause 2 Article 71 of the Tax Management Law 2019, the tax refund claim includes:

- A request for a tax refund;

- Documents related to the tax refund request.

How is the tax refund claim received?

Based on Article 32 of Circular 80/2021/TT-BTC on receiving tax refund claims:

(1) Request for tax refund by electronic application:

- Taxpayers submit electronic tax refund claims through the electronic portal of the General Department of Taxation or other electronic portals as per the regulations on electronic transactions in the tax field.

- The reception of electronic tax refund claims follows the regulations on electronic transactions in the tax field.

- Within 03 working days from the date on the Notice of acceptance of tax refund claim as per form 01/TB-HT under Appendix 1 Circular 80/2021/TT-BTC, the tax authority handling the tax refund claim as specified in Article 27 Circular 80/2021/TT-BTC issues a Notice of acceptance for the tax refund claim following form 02/TB-HT under Appendix 1 Circular 80/2021/TT-BTC or a Notice of non-refund eligibility as per form 04/TB-HT under Appendix 1 Circular 80/2021/TT-BTC in cases where the application does not qualify for a refund through the electronic portals of the General Department of Taxation or other portals where the taxpayer submitted the electronic refund application.

(2) Request for tax refund by paper application:

- If taxpayers submit paper tax refund claims at the tax authority, tax officials check the completeness of the application according to regulations. If the application is incomplete, tax officials request the taxpayer to complete the application according to regulations. If the application is complete, tax officials send a Notice of receipt of application as per form 01/TB-HT under Appendix 1 Circular 80/2021/TT-BTC to the taxpayer and record the application in the tax management system.

- If taxpayers send applications via postal service, tax officials stamp the receipt, note the date of receipt on the application, and record it in the tax management system.

- Within 03 working days from receiving the tax refund claim, the tax authority sends a Notice of acceptance of the tax refund claim as per form 02/TB-HT or a Notice of incorrect application procedures as per form 03/TB-HT under Appendix 1 Circular 80/2021/TT-BTC for applications by postal service or a Notice of non-refund eligibility as per form 04/TB-HT under Appendix 1 Circular 80/2021/TT-BTC in cases not qualifying for a refund.