Value-added tax refunds in Vietnam in 2022

Value-added tax refunds in 2022 (Illustration)

Cases of refund of value added tax in 2022 are regulated in the Law on Value Added Tax 2008 (amended and supplemented in 2013, 2014, 2016), specifically:

- The business establishment pays value-added tax in Vietnam according to the tax deduction method if the input value-added tax has not been fully deducted in the month or in the quarter, it shall be deducted in the next period.

If the registered business establishment pays value-added tax according to the deductible method with new investment projects, in the period of investment with the value-added tax amount of goods and services purchased for investment which have not yet been deducted and have a remaining tax amount of three hundred million dong or more, it shall be entitled to a refund of value-added tax in Vietnam.

The business establishment shall not be entitled to refund value added tax in Vietnam but shall transfer the undeducted tax amount of the investment project in accordance with the law on investment to the next period for the following cases:

+ Investment projects of business establishments in Vietnam do not contribute enough charter capital as registered; conduct business in conditional business investment when they do not meet the business conditions prescribed by the Law on Investment or fail to maintain sufficient business conditions in the course of operation;

+ Investment projects in exploitation of natural resources and minerals in Vietnam are licensed from July 1, 2016 or investment projects in production of commodity products where the total value of natural resources and minerals plus energy costs accounts for 51% or more of the cost of products under investment projects.

- Business establishments that have goods and services exported in Vietnam in the month or quarter if the input value added tax has not been deducted from three hundred million dong or more shall be entitled to refund value added tax monthly or quarterly, unless the imported goods for export or exported goods do not perform the export in the customs operation area in accordance with the provisions of the Customs Law.

Performing tax refunds first, checking later for taxpayers producing export goods that do not violate the tax and customs law for a period of two consecutive years; taxpayers who are not subject to high risk under the provisions of the Law on Tax Management.

- The business establishment in Vietnam shall pay value-added tax according to the method of withholding tax to be refunded on ownership transformation, business transformation, merger, consolidation, division, separation, dissolution, bankruptcy, termination of activities with excess value-added tax or input value-added tax not yet fully deducted.

- Foreigners and Vietnamese residing abroad who carry passports or entry documents issued by foreign competent authorities shall be entitled to a tax refund for goods purchased in Vietnam when they leave the country.

- The refund of value-added tax for programs and projects funded by ODA or grant or humanitarian aid shall be as follows:

+ The owner of the program/project or the principal contractor or the organization designated by the foreign donor to manage the program/project using ODA grants is entitled to a refund of the value-added tax paid for goods and services purchased in Vietnam for the program/project;

+ Organizations in Vietnam that use non-refundable aid money, humanitarian aid money of foreign organizations and individuals to purchase goods and services for non-reimbursable aid programs or projects and humanitarian aid in Vietnam shall be entitled to a refund of the value-added tax paid for such goods and services.

- Persons entitled to diplomatic privileges and immunities in accordance with the law on diplomatic preferences and immunities for the purchase of goods and/or services in Vietnam shall be entitled to the refund of the value-added tax paid on the value-added tax invoice or on the payment voucher stating the value-added tax.

- The business establishment shall issue a decision on refund of value-added tax by a competent authority in accordance with law and in case of refund of value-added tax in accordance with an international treaty to which the Socialist Republic of Vietnam is a signatory.

Diem My

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