What is the supplementary case for VAT refund in Vietnam from July 1, 2025?

What is the supplementary case for VAT refund in Vietnam from July 1, 2025?

Firstly, under Article 13 of the Value Added Tax Law 2008, amended by Clause 7, Article 1 of the Amended Value Added Tax Law 2013 and further amended by Clause 3, Article 1 of the 2016 Law Amending the Value Added Tax Law, Special Consumption Tax Law, and Law on Tax Administration, cases eligible for VAT refund include:

Case [1] Business establishments paying VAT according to the deduction method are eligible to deduct the remaining input VAT not yet deducted in the month or quarter in the following periods.

In cases where business establishments registered for VAT payment under the deduction method have new investment projects in the investment phase with input VAT on goods and services used for investment that has not been fully deducted, and the remaining tax is from three hundred million VND or more, they are eligible for a VAT refund.

Businesses are not eligible for VAT refunds but must carry forward the undeducted tax amount of the investment project to the next period under investment law provisions in the following cases:

- Investment projects of business establishments do not contribute sufficient charter capital as registered; engage in conditional investment and business sectors without fulfilling the conditions prescribed by the Investment Law or fail to maintain adequate business conditions during operations;

- Investment projects exploiting natural resources and minerals licensed from July 1, 2016, or production projects where the total value of natural resources, minerals plus energy costs accounts for 51% of the product cost or more per the investment project.

Case [2] Business establishments in the month or quarter have exported goods and services and if the undeducted input VAT is from three hundred million VND or more, they are eligible for a VAT refund monthly or quarterly unless the goods are imported for export, or the export goods are not cleared through the customs operation areas per the Customs Law 2014.

Implement tax refund first, audit later for taxpayers who manufacture export goods without violating tax or customs laws for two consecutive years; taxpayers not classified as high-risk per the Tax Administration Law 2019.

Case [3] Business establishments paying VAT according to the deduction method are eligible for a VAT refund upon ownership change, enterprise transformation, merger, consolidation, division, separation, dissolution, bankruptcy, or termination of operations, with excess VAT paid or undeducted input VAT.

Case [4] Foreigners and overseas Vietnamese carrying passports or entry documents issued by foreign competent authorities are eligible for VAT refunds for goods purchased in Vietnam taken out of the country.

Case [5] VAT refund for programs and projects using non-refundable official development assistance (ODA) or non-refundable aid, humanitarian aid, is regulated as follows:

- Program or project owner or principal contractor, organizations designated by foreign donors to manage the program, project using non-refundable ODA funds are refunded VAT paid for goods and services purchased in Vietnam for the program, project;

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

Case [6] Subjects entitled to diplomatic exemption privileges as prescribed by law on diplomatic exemption privileges who purchase goods and services in Vietnam for use are refunded the VAT paid as stated on the value-added invoice or in payment documents indicating that the payment amount includes VAT.

Case [7] Business establishments with a VAT refund decision by competent authorities per legal regulations and cases of VAT refund under international treaties to which the Socialist Republic of Vietnam is a party.

Moreover, the new Value Added Tax Law 2024, specifically in Clause 3, Article 15 Download, will add the following case eligible for VAT refund:

Business establishments solely producing goods, providing services taxed at a VAT rate of 5% are eligible for VAT refund if the undeducted input VAT is from 300 million VND or more after 12 months or 04 quarters.

Download The new VAT Law 2024 will officially take effect from July 1, 2025.

What is the supplementary case for VAT refund in Vietnam from July 1, 2025? (Image from Internet)

Are there changes in definition of VAT in Vietnam under the Law on VAT 2024 in Vietnam?

Under Article 2 of the Value Added Tax Law 2008, the concept of VAT is stated as follows:

"Value-added tax is a tax levied on the added value of goods and services arising in the process from production, circulation to consumption."

supplementaryly, also at Article 2 of the Value Added Tax Law 2024 Download (effective from July 1, 2025) as follows:

Value-added tax is a tax levied on the added value of goods and services arising in the process from production, circulation to consumption.

Thus, regarding the basic concept, in both the old and the newest current regulations, there is no change.

What Does the VAT Refund Dossier Under the Old VAT Law Include?

According to the regulations in Article 28 of Circular 80/2021/TT-BTC, amended by Article 2 of Circular 13/2023/TT-BTC, the VAT refund dossier is as follows:

The VAT refund dossier according to the VAT law (excluding cases of VAT refund under international treaties; VAT refund on input tax not fully deducted when changing ownership, converting business, merging, consolidating, dividing, splitting, dissolving, bankrupting, or terminating activities according to Article 30, Article 31 of Circular 80/2021/TT-BTC) includes:

1. The request for reimbursement of state budget funds according to Form No. 01/HT issued with Appendix 1 of Circular 80/2021/TT-BTC.

2. Related documents according to specific refund cases:

* Case of refund for investment project:

- Copy of Investment Registration Certificate or Investment Certificate or Investment License if required to obtain the investment registration certificate;

- For projects with construction works: Copy of Land Use Rights Certificate or land allocation decision or land lease contract of competent authority; construction permit;

- Copy of capital contribution certificate;

- For investment projects of businesses in conditional business and investment sectors during the investment phase, according to investment laws, specialized laws that have been issued by competent state agencies a business license for conditional business and investment sectors as per Clause 3, Article 1 of Decree 49/2022/ND-CP: A copy of one of the forms of License or Certificate or Confirmation, Approval document for business, conditional business and investment sectors.

- Invoice, voucher list of purchased goods and services according to Form No. 01-1/HT issued with Appendix 1 of Circular 13/2023/TT-BTC, except for tax payers who have sent electronic invoices to tax authorities;

- Decision to establish Project Management Board, Decision to assign the management of the investment project by the project owner, Regulation on organization and operation of branches or Project Management Board (if the branch or Project Management Board applies for a tax refund).

* Case of refund for exported goods and services:

- Invoice, voucher list of purchased goods and services according to Form No. 01-1/HT issued with Appendix 1 of Circular 80/2021/TT-BTC, except for taxpayers who have sent electronic invoices to tax authorities;

- List of customs declarations cleared according to Form No. 01-2/HT issued with Appendix 1 of Circular 80/2021/TT-BTC for goods exported cleared by customs regulations.* Cases of Tax Refund for Programs, Projects Using Non-Refundable Official Development Assistance (ODA) Funds:

- In cases where non-refundable ODA funds are directly managed and implemented by the program, project owner:

+ A copy of the international treaty or non-refundable ODA agreement or exchange document on the commitment and acceptance of non-refundable ODA funds; a copy of the Decision approving the project document, non-project document or the decision to invest in the program and the project document or the approved feasibility study report as stipulated in points a, b clause 2 Article 80 of Decree 56/2020/ND-CP.

+ Request for confirmation of eligible recurrent funding expenditures for recurrent expenditures and request for payment of investment capital for investment expenditures by the project owner as stipulated in point c clause 2 Article 80 of Decree 56/2020/ND-CP and point a clause 10 Article 10 of Decree 11/2020/ND-CP.

+ List of purchase invoices, vouchers for goods and services according to form number 01-1/HT issued together with annex 1 of Circular 80/2021/TT-BTC.

+ Copy of the document confirming by the managing agency of the ODA program, project regarding the form of providing non-refundable ODA program, project eligible for VAT refund and not financed by the state budget to cover VAT.

+ If the program, project owner delegates part or the entire program, project to another unit or organization for management and implementation in accordance with the law on the management and use of non-refundable ODA funds, but this content has not been stated in the documents provided at point c.1.1, c.1.4 clause 2 Article 28 of Circular 80/2021/TT-BTC, in addition to the documents under point c.1.1, c.1.2, c.1.3, c.1.4 clause 2 Article 28, must include a copy of the document on the delegation for management, implementation of the non-refundable ODA program, project from the program, project owner to the organization requesting tax refund.

+ If the main contractor files for a tax refund, besides the documents stipulated at point c.1.1, c.1.2, c.1.3, c.1.4 clause 2 Article 28 of Circular 80/2021/TT-BTC, it must also include a copy of the contract signed between the project owner and the main contractor showing that the payment price based on the bidding result does not include VAT.

The taxpayer only needs to submit the documents specified at point c.1.1, c.1.4, c.1.5, c.1.6 clause 2 Article 28 of Circular 80/2021/TT-BTC for the initial tax refund application or when there are changes or supplements.

- In cases where non-refundable ODA funds are directly managed and implemented by the donor:

+ Documents as required at point c.1.1, c.1.3 clause 2 Article 28 of Circular 80/2021/TT-BTC;

+ If the Donor appoints a Representative Office of the donor or an organization to manage and implement the program, project (except for cases stipulated at point c.2.3 clause 2 Article 28 of Circular 80/2021/TT-BTC) but this content has not been stated in the documents stipulated at point c.1.1 clause 2 Article 28, supplementary documents must include:

++ A copy of the document on the delegation for management, implementation of the non-refundable ODA program, project from the donor to the donor's Representative Office or organization appointed by the donor;

++ A copy of the document from a competent authority regarding the establishment of a donor's Representative Office or an organization appointed by the donor.

+ In cases where the main contractor files for a tax refund, besides the documents specified at point c.2.1 clause 2 Article 28 of Circular 80/2021/TT-BTC, it must also include a copy of the contract signed between the donor and the main contractor or a contract summary confirmed by the donor which provides details including the contract number, signing date, contract duration, scope of work, contract value, payment method, and that the payment price under the bidding result does not include VAT.

The taxpayer only needs to submit the documents specified at point c.1.1, c.2.2, c.2.3 clause 2 Article 28 of Circular 80/2021/TT-BTC for the initial tax refund application or when there are changes or supplements.

* Cases of Tax Refund for Goods, Services Purchased Domestically Funded by Non-Refundable Aid Not Considered ODA:

- A copy of the Decision approving the program, project document; non-project aid fund and program, project, non-project document as specified at point a clause 2 Article 24 of Decree 80/2020/ND-CP;

- Request for confirmation of eligible recurrent funding expenditures for recurrent expenditures and request for payment of investment capital for investment expenditures by the project owner (in case of acceptance of non-refundable aid from the state budget source) as stipulated at point b clause 2 Article 24 of Decree 80/2020/ND-CP and point a clause 10 Article 10 of Decree 11/2020/ND-CP.

- List of purchase invoices, vouchers for goods and services according to form number 01-1/HT issued together with annex 1 of Circular 80/2021/TT-BTC.

The taxpayer only needs to submit the documents specified at point d.1 clause 2 Article 28 of Circular 80/2021/TT-BTC for the initial tax refund application or when there are changes or supplements.

* Cases of Tax Refund for Goods, Services Purchased Domestically Funded by Emergency International Aid for Disaster Relief and Recovery in Vietnam:

- A copy of the Decision to accept emergency aid for relief (in case of emergency international aid for relief) or the Decision on the policy of accepting emergency international aid for disaster recovery and the emergency international aid document for disaster recovery (in case of emergency international aid for disaster recovery) as stipulated in clauses 6, 7, 8 Article 3 of Decree 50/2020/ND-CP.

- List of purchase invoices, vouchers for goods and services according to form number 01-1/HT issued together with annex 1 Article 28 of Circular 80/2021/TT-BTC.

The taxpayer only needs to submit the documents specified at point đ.1 clause 2 Article 28 of Circular 80/2021/TT-BTC for the initial tax refund application or when there are changes or supplements.

* Cases of Tax Refund for Diplomatic Privilege Exemptions:

- List of VAT for goods, services purchased for diplomatic missions according to form number 01-3a/HT issued together with annex 1 Article 28 of Circular 80/2021/TT-BTC with confirmation from the State Protocol Department under the Ministry of Foreign Affairs regarding input costs subject to diplomatic immunity for tax refund.

- List of public employees entitled to VAT refunds according to form number 01-3b/HT issued together with annex 1 Article 28 of Circular 80/2021/TT-BTC.

* Tax Refunds for Commercial Banks Acting as VAT Refund Agents for Departing Foreigners:

The list of VAT refund documents for foreigners departing the country according to form number 01-4/HT issued together with annex 1 Article 28 of Circular 80/2021/TT-BTC.

* Cases of VAT Refund According to Decisions by Competent Authorities as Prescribed by Law: Competent authority's decision.

*Note: The Law on Value Added Tax 2024 is effective from July 1, 2025, except for the provision specified in clause 2 Article 18 of the Value Added Tax Law 2024.

- The regulation on turnover levels of households and individuals producing, trading subject to non-taxable status in clause 25 Article 5 of this Law and Article 17 of the Value Added Tax Law 2024 is effective from January 1, 2026.

- The Law on Value Added Tax No. 13/2008/QH12, as amended and supplemented by Laws No. 31/2013/QH13, No. 71/2014/QH13, and No. 106/2016/QH13, ceases to be effective from the date the Law on Value Added Tax 2024 comes into force.