Cases of Tax Refund Under the Amended 2013 VAT Law

To be specific:, according to Clause 7, Article 1 of the Law on Value-Added Tax Amendment 2013 amending and supplementing Article 13 of the Law on Value-Added Tax 2008, cases entitled to value-added tax refunds are stipulated as follows:

1. Business establishments paying value-added tax using the credit method, if the input value-added tax amount has not been fully credited within the month or quarter, are entitled to carry forward the uncredited input tax to the next period; in cases where the cumulative period is at least twelve months from the first month or at least four quarters from the first quarter when the uncredited value-added tax arises and there still remains an uncredited input tax amount, the business establishment is entitled to a tax refund.

For business establishments already registered to pay value-added tax using the credit method that have new investment projects currently in the investment stage, if the value-added tax amount on goods and services purchased for investment is not yet credited and the remaining tax amount is three hundred million dong or more, they are entitled to a value-added tax refund.

2. Business establishments in a month or quarter that have exported goods or services, if the input value-added tax amount not yet credited is three hundred million dong or more, are entitled to a value-added tax refund according to month or quarter.

3. Business establishments paying value-added tax using the credit method are entitled to a value-added tax refund when ownership transfers, business conversions, mergers, consolidations, divisions, separations, dissolutions, bankruptcies, or business terminations have excess tax paid or input value-added tax amount not yet credited.

4. Foreigners, overseas Vietnamese holding passports or entry documents issued by competent foreign authorities are entitled to tax refunds for goods purchased in Vietnam and carried along when exiting the country.

5. The value-added tax refund for programs and projects using non-refundable official development assistance (ODA) funds or non-refundable aids and humanitarian aids is stipulated as follows:

- Program owners, projects or principal contractors, organizations designated by foreign sponsors to manage programs, projects using non-refundable ODA funds are entitled to a refund of the value-added tax paid for goods and services purchased in Vietnam to serve the program, project;- Organizations in Vietnam using non-refundable aid money, humanitarian aid from foreign organizations, individuals to purchase goods and services to serve the non-refundable aid, humanitarian aid programs and projects in Vietnam are entitled to a refund of the value-added tax paid for these goods, services.

6. Entities enjoying diplomatic immunity privileges as per the laws on diplomatic immunity privileges purchasing goods, services in Vietnam for use are entitled to a refund of the value-added tax paid as shown on the value-added tax invoice or payment document stating the payment amount includes value-added tax.

7. Business establishments having a value-added tax refund decision by a competent authority according to the law and in cases of value-added tax refunds under international treaties to which Vietnam is a member.

See more: Law on Value-Added Tax Amendment 2013 effective January 01, 2014, amending and supplementing certain provisions of Law on Value-Added Tax 2008.

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