What is the procedure for VAT refund for investment projects in Vietnam?

What are cases of tax refund in Vietnam?

According to Article 70 of the 2019 Law on Tax Administration, tax refund cases are stipulated as follows:

- Tax authorities shall refund taxes to organizations and individuals eligible for tax refunds according to tax law provisions.

- Tax authorities shall refund overpaid amounts when the taxpayer's payment to the state budget exceeds the amount required under Section 1, Article 60 of the 2019 Law on Tax Administration.

What is the procedure for VAT refund for investment projects in Vietnam? (Image from the Internet)

What is the procedure for VAT refund for investment projects in Vietnam?

According to Decision 2111/QD-BTC 2024 on the announcement of administrative procedures that have been amended and supplemented in the Tax sector under the management function of the Ministry of Finance, the procedure for implementing VAT refunds for investment projects is as follows:

+ Step 1. The taxpayer (NNT) who is eligible for a VAT refund for an investment project prepares a refund request dossier and submits it to the tax authority.

In case the NNT submits the dossier via electronic transactions: The NNT accesses the electronic portal they choose (either the portal of the General Department of Taxation or that of the competent state authority, including:

- National public service portal

- Ministry or provincial public service portals pursuant to the one-stop-shop and inter-agency processing of administrative procedures and already connected to the electronic portal of the General Department of Taxation (hereinafter referred to as the electronic portal of a competent state authority)/portal of a T-VAN service provider) to declare the tax refund dossier

- Attachments as stipulated in electronic format (if any),

Then sign electronically and send it to the tax authority through the chosen electronic portal.

Step 2. The tax authority receives:

++ In case the dossier is submitted directly at the tax authority:

+++ Dossier reception: the tax official checks the completeness of the dossier according to regulations.

++++ Incomplete dossier: The tax official requests the NNT to complete the dossier in accordance with regulations.

++++ Complete dossier: The tax official sends a Notice of Dossier Reception using form 01/TB-HT issued with Appendix I of Circular 80/2021/TT-BTC to the NNT and records the receipt in the tax management system.

+++ Dossier examination and handling:

++++ Accepted/Not accepted dossier: The tax authority sends an Acceptance/Non-acceptance Notice using form 02/TB-HT issued with Appendix I of Circular 80/2021/TT-BTC within 03 (three) working days from the date of receipt of the refund request dossier.

++++ Dossier not eligible for a refund: The tax authority sends a Notice of Non-refund using form 04/TB-HT issued with Appendix I of Circular 80/2021/TT-BTC within 03 (three) working days from the date of receipt of the refund request dossier.

++++ Accepted dossier for resolution: The tax authority processes the tax refund request dossier of the NNT and returns the results as stipulated by the Law on Tax Administration and its guiding documents.

++ In case the dossier is sent via postal services:

+++ Dossier reception: The tax official stamps the receipt, notes the receipt date, and records the dossier in the tax management system.

+++ Dossier examination and handling:

++++ Accepted/Not accepted dossier: The tax authority sends an Acceptance/Non-acceptance Notice using form 02/TB-HT issued with Appendix I of Circular 80/2021/TT-BTC within 03 (three) working days from the date of receipt of the refund request dossier.

++++ Incorrect procedure dossier: The tax authority sends a Notice of Incorrect Procedure using form 03/TB-HT issued with Appendix I of Circular 80/2021/TT-BTC within 03 (three) working days from the date of receipt of the refund request dossier.

++++ Dossier not eligible for a refund: The tax authority sends a Notice of Non-refund using form 04/TB-HT issued with Appendix I of Circular 80/2021/TT-BTC within 03 (three) working days from the date of receipt of the refund request dossier.

++++ Accepted dossier for resolution: The tax authority processes the tax refund request dossier of the NNT and returns the results as stipulated by the Law on Tax Administration and its guiding documents.

++ In case the dossier is submitted via electronic transactions, the tax authority receives, examines, and accepts the tax refund dossier through the electronic data processing system:

+++ Dossier reception: The electronic portal of the General Department of Taxation sends a Dossier Reception Notice confirming that the NNT has submitted the refund request dossier using form 01/TB-HT issued with Appendix I of Circular 80/2021/TT-BTC to the NNT through the electronic portal chosen by the NNT to prepare and submit the dossier (portal of the General Department of Taxation or of the competent state authority or the T-VAN service provider) no later than 15 minutes from receipt of the refund request dossier from the NNT.

+++ Dossier examination and handling:

++++ Accepted/Not accepted dossier: The tax authority sends an Acceptance/Non-acceptance Notice using form 02/TB-HT issued with Appendix I of Circular 80/2021/TT-BTC to the electronic portal chosen by the NNT to prepare and submit the dossier (portal of the General Department of Taxation or of the competent state authority or the T-VAN service provider) within 03 (three) working days from the date of the electronic refund dossier reception notice.

++++ Dossier not eligible for a refund: The tax authority sends a Notice of Non-refund using form 04/TB-HT issued with Appendix I of Circular 80/2021/TT-BTC to the electronic portal chosen by the NNT to prepare and submit the dossier (portal of the General Department of Taxation or of the competent state authority or the T-VAN service provider) within 03 (three) working days from the date of the electronic refund request dossier receipt.

++++ Accepted dossier for resolution: The tax authority processes the tax refund request dossier of the NNT and returns the results as stipulated by the Law on Tax Administration and its guiding documents.Step 3. Tax authorities process the application for accepted cases:

++ For applications eligible for tax refund in advance: The tax authority conducts a review of the taxpayer's dossier at the tax authority's office to determine eligibility and circumstances for tax refund.

+++ If the application is eligible for refund: The tax authority processes the refund for the taxpayer and issues a Tax Refund Decision according to form number 01/QDHT attached to Appendix I 01/QDHT in case the taxpayer does not have outstanding tax debts; or a Tax Refund and Offset Decision for state budget debts according to form number 02/QDHT, Appendix of tax amount, late payment interest, and penalties to be offset according to form number 01/PL-BT (if any), issued with Appendix I of Circular 80/2021/TT-BTC if the taxpayer has outstanding tax debts or requests debt offset; or a Notification of Non-refund form number 04/TB-HT (if any) issued attached to Appendix I of Circular 80/2021/TT-BTC.

+++ If there is insufficient information to determine eligibility for refund: The tax authority prepares a Notification for Explanation and Information Supplement according to form number 01/TB-BSTT-NNT issued with Decree 126/2020/ND-CP sent to the taxpayer within 3 working days from the date of receiving the refund application from the taxpayer. If the taxpayer processes the refund electronically, the notification is sent via the General Department of Taxation's electronic portal.

Within 10 working days from the date of the issuance of the Notification, the taxpayer must submit a written explanation or additional information as requested by the tax authority.

++++ If the taxpayer provides a written explanation or additional documents proving that the declared tax amount is correct: The tax authority resolves the refund for the taxpayer and issues a Tax Refund Decision according to form number 01/QDHT, issued with Appendix I Circular 80/2021/TT-BTC if the taxpayer has no outstanding tax debts; or a Tax Refund and Offset Decision according to form number 02/QDHT, and amount of tax, late payment interest, penalty to be offset according to form number 01/PL-BT (if any), issued with Appendix I Circular 80/2021/TT-BTC if the taxpayer has outstanding tax debts or requests to offset the refundable tax amount against obligations arising from other taxpayers; or a Notification of Non-refund form number 04/TB-HT (if any) issued with Appendix I Circular 80/2021/TT-BTC.

++++ If the taxpayer does not provide an explanation, or additional documents by the deadline per the tax authority's Notification; or submits but fails to prove the declared tax amount is correct: The tax authority moves the refund application to the pre-refund audit category and issues a Notification of Case Transfer to Pre-refund Audit form number 05/TB-HT issued with Appendix I Circular 80/2021/TT-BTC to the taxpayer within 6 working days from the date of application acceptance.

++ For applications in the pre-refund audit category: The tax authority conducts a check of the taxpayer's dossier at the taxpayer's office or at the offices of relevant agencies, organizations, or individuals.

Based on the audit results, the tax authority processes the refund and issues a Tax Refund Decision according to form number 01/QDHT issued with Appendix I Circular 80/2021/TT-BTC if the taxpayer does not have outstanding tax debts; or a Tax Refund and Offset Decision for state budget debts according to form number 02/QDHT, Appendix of tax amount, late payment interest, and penalties to be offset according to form number 01/PL-BT (if any), issued with Appendix I Circular 80/2021/TT-BTC if the taxpayer has outstanding tax debts or requests debt offset; or a Notification of Non-refund form number 04/TB-HT (if any) issued with Appendix I Circular 80/2021/TT-BTC.

What are procedures and documents required for VAT refunds for investment projects in Vietnam?

According to Decision 2111/QD-BTC of 2024, methods for processing tax refund procedures in this case include:

+ Submission directly at the tax office;

+ Sending via postal service;

+ Or by electronic method through the General Department of Taxation's Electronic Portal; or through a competent state agency's electronic portal; or through a T-VAN service provider organization.

- Components and quantity of application dossier:

+ Components of the dossier include:

++ Application for refund of state budget revenue according to form number 01/HT, issued with Appendix I Circular 80/2021/TT-BTC;

++ A copy of the Investment Registration Certificate or Investment Certificate or Investment License if an investment certificate registration procedure is required;

++ For projects with construction works: A copy of the Land Use Rights Certificate or Land Allocation Decision or Land Lease Contract from a competent authority; construction permit;

++ A copy of the charter capital contribution document;

++ For investment projects in conditional business sectors during the investment stage, as per the investment law and specific regulations issued by competent state authorities, a Business License or certificate, or confirmation, approval document for conditional business sectors as stipulated in Clause 3, Article 1 Decree 49/2022/ND-CP: A copy of one of the licenses, certificates, or confirmation, approval documents regarding the conditional business sector;

++ Decision to establish the Project Management Board, Decision assigning project management for the investment project by the investment project owner, organizational rules, and operational regulations of the branch or project management board (if the branch or management board processes the refund).

For taxpayers who have not sent electronic invoices to the tax authority, they must submit: Invoice list, documents for purchased goods and services form number 01-1/HT issued with Appendix I Circular 80/2021/TT-BTC.

+ Quantity of application dossier: 01 set.

- Processing time:

The tax authority processes and provides results within the prescribed period:

+ For cases eligible for advance tax refund, no later than 6 working days from the date of written notification of application acceptance by the tax management authority;

+ For cases in the pre-refund audit category, no later than 40 days from the date of written notification of application acceptance by the tax management authority.