What are requirements for a business establishment to receive value-added tax refunds in Vietnam from July 1, 2025?

What are requirements for a business establishment to receive value-added tax refunds in Vietnam from July 1, 2025?

Based on Clause 9, Article 15 of the Law on Value-Added Tax 2024 (effective from July 1, 2025), the requirements for a business establishment to receive a value-added tax refund are stipulated as follows:

Value-added tax refund

...

9. A business establishment eligible for a tax refund under this Article must meet the following requirements:

a) Businesses eligible for tax refunds as specified in Clauses 1, 2, 3, and 4 of this Article must declare value-added tax under the credit method, set up and maintain accounting books and documents in accordance with the accounting law; and have a deposit account at a bank under the tax code of the business establishment;

b) Meet the criteria for input value-added tax credit as specified in Clause 2, Article 14, and do not fall under the cases stipulated in Clause 3, Article 14 of this Law;

c) The seller has declared and paid value-added tax as required for the invoice issued to the business establishment requesting the tax refund.

...

At the same time, in accordance with the provisions in Clauses 2 and 3, Article 14 of the Law on Value-Added Tax 2024 (effective from July 1, 2025), related to the input value-added tax credit.

Thus, a business establishment must meet all the following requirements to be eligible for a value-added tax refund:

- Be eligible for a value-added tax refund as stipulated in Clauses 1, 2, 3, and 4, Article 15 of the Law on Value-Added Tax 2024.

- Declare value-added tax under the credit method, set up and maintain accounting books and documents in accordance with the law on accounting.

- Have a deposit account at a bank under the tax code of the business establishment.

- Meet the requirements for input value-added tax credit as follows:

+ Have value-added tax invoices for purchasing goods and services or tax payment documents for value-added tax at the import stage or tax payment documents for value-added tax paid on behalf of a foreign party as stipulated in Clauses 3 and 4, Article 4 of the Law on Value-Added Tax 2024. The Minister of Finance stipulates the tax payment documents paid on behalf of the foreign party;

+ Have non-cash payment documents for purchased goods and services, except for some specific cases as stipulated by the Government of Vietnam;

+ For exported goods and services, in addition to the requirements stipulated at points a and b, Clause 2, Article 14 of the Law on Value-Added Tax 2024, the following must also be available: contracts with foreign parties for selling, processing goods, or providing services; sales invoices for goods sold or services provided; non-cash payment documents; customs declarations for exported goods; packing lists, bill of lading, insurance documents (if any). The Government of Vietnam stipulates the credit requirements for the export of goods through overseas e-commerce platforms and other specific cases.

- Not fall under the case where the business establishment does not meet the requirements for input value-added tax credit and where invoices and documents are established from prohibited acts under the Law on Value-Added Tax 2024.

- The seller has declared and paid value-added tax as required for the invoice issued to the business establishment requesting the tax refund.

What are requirements for a business establishment to receive value-added tax refunds in Vietnam from July 1, 2025? (Image from the Internet)

What are regulations on classification of tax refund claims in Vietnam?

According to Article 73 of the Law on Tax Administration 2019, the classification of tax refund claims is regulated as follows:

(1) tax refund claims are classified into dossiers subject to pre-refund inspection and dossiers subject to the refund first.

(2) Dossiers subject to pre-refund inspection include:

- Dossiers of taxpayers requesting a refund for the first time for each case as stipulated by tax laws. In cases where the taxpayer has sent a tax refund dossier to the tax administration agency for the first time but is not eligible for a refund, the next request will still be considered as a first-time request;

- Dossiers of taxpayers requesting a refund within two years from the date of being penalized for tax evasion;

- Dossiers of organizations that are dissolved, bankrupt, terminate operations, sell, transfer, and hand over state-owned enterprises;

- tax refund claims classified as high-risk according to risk management in tax administration;

- tax refund claims that fall under prior refund requirements but are overdue according to the written notice from the tax administration agency without the taxpayer explaining, supplementing the tax refund dossier, or having explained, supplemented without proving the declared tax amount is correct;

- tax refund claims for exported, imported goods not processed through commercial banks or other credit institutions as prescribed by law;

- tax refund claims for exported, imported goods that must be inspected before a refund as stipulated by the Government of Vietnam.

(3) Dossiers subject to the refund first are taxpayer dossiers not belonging to the cases mentioned above.

What is the time limit for resolving tax refund claims in Vietnam?

Based on Clauses 1 and 2, Article 75 of the Law on Tax Administration 2019, the time limit for resolving tax refund claims is stipulated as follows:

- For dossiers subject to the refund first, no later than 06 working days from the date the tax administration agency notifies the acceptance of the dossier and the time limit for resolving the tax refund dossier, the tax administration agency must decide to refund tax to the taxpayer or notify the transfer of the taxpayer's dossier to pre-refund inspection if falling under the requirements specified in Clause 2, Article 73 of the Law on Tax Administration 2019 or notify non-refund for the taxpayer if the dossier does not meet the refund requirements.

In case the information declared on the tax refund dossier differs from the management information of the tax administration agency, the tax administration agency shall notify in writing for the taxpayer to explain and supplement the information. The time for explanation and supplementation of information is not included in the time limit for resolving the tax refund dossier.

- For dossiers subject to pre-refund inspection, no later than 40 days from the date the tax administration agency notifies in writing the acceptance of the dossier and the time limit for resolving the tax refund dossier, the tax administration agency must decide to refund tax to the taxpayer or not refund tax if the dossier does not meet the refund requirements.