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1. Cases eligible for value added tax (VAT) refund

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According to the Law on VAT 2008, amended and supplemented in 2013 and 2016, the following cases are eligible for VAT refund:

• Business establishments that export goods and services in a month or quarter and have input VAT that has not been deducted from VND 300 million or more will be refunded VAT on a monthly or quarterly basis.
• Enterprises paying VAT according to the tax deduction method are entitled to VAT refunds when converting enterprises, changing ownership, merging, consolidating, dividing, separating, going bankrupt, dissolving, or ceasing operations with excess VAT paid or input VAT that has not been fully deducted.
• Enterprises that have registered to pay VAT according to the deduction method and have a new investment project in the investment phase with VAT on purchased goods and services used for investment that has not been deducted and have a remaining tax amount of VND 300 million or more will be eligible for a VAT refund.
• Organizations in Vietnam that use non-refundable aid or humanitarian aid from foreign organizations or individuals to purchase goods and services for non-refundable aid or humanitarian aid programs or projects in Vietnam will be refunded the VAT paid for those goods and services.
• Business establishments have a VAT refund decision from a competent authority in accordance with the provisions of law and in cases of VAT refund under international treaties of which the Socialist Republic of Vietnam is a member.
• Foreigners and Vietnamese people residing abroad holding passports or entry documents issued by competent foreign authorities are entitled to tax refunds on goods purchased in Vietnam and brought with them when leaving the country.
• Subjects entitled to diplomatic immunity under the provisions of the law on diplomatic immunity who purchase goods and services in Vietnam for use shall be refunded the VAT paid stated on the VAT invoice or on the payment document stating the payment price including VAT.

2. Conditions for VAT refund 2019

Pursuant to Clause 1, Article 9 of Circular 219/2013/TT-BTC, enterprises eligible for VAT refund must meet the following conditions:

• Enterprises have been granted a business registration certificate, establishment decision of a competent authority or investment license.
• Is a business establishment or organization that pays tax using the deduction method.
• Prepare and keep accounting books and documents according to the provisions of law.
• Have a seal in accordance with the law
• Have a bank deposit account with the tax code of the business establishment

3. VAT refund procedures

According to Circular 156/2013/TT-BTC, tax refund procedures are carried out as follows:

Step 1: Prepare tax refund documents including:

• Tax refund request letter
• Tax refund request form according to Form 01/DNHT (issued with Circular 156/2013/TT-BTC)
• Documents related to tax refund requests such as: copies of monthly VAT declarations, lists of invoices larger than 20 million paid via bank,... (each case of VAT refund is different).

Step 2: Submit tax documents

Submit tax refund dossiers to the directly managing tax authority or to the customs authority with tax refund authority. The dossiers can be submitted directly to the tax authority, via the electronic information portal or sent by post.

Step 3: Process documents, make decisions and pay VAT to taxpayers

The Tax Department, based on Clause 1, Article 59 of Circular 156/2013/TT-BTC, decides on tax refunds and makes an Order to refund state budget revenue according to the prescribed form; based on the Decision on tax refunds and state budget revenue offsets, makes an Order to refund and offset state budget revenue according to the prescribed form and sends it to the State Treasury at the same level.

In addition, businesses can also use VAT refund services to resolve tax refund issues quickly, accurately and at a very reasonable price.

4. VAT refund time

Refund time is divided into the following 2 cases:

• Refund first - check later: If the tax refund application is not eligible for refund or does not have enough information, the tax authority will send a notice to the taxpayer within 3 days from the date of receiving the complete application. If the application is complete and meets the conditions for tax refund, the tax authority will issue a tax refund decision within no more than 6 days from the date of receiving the application.
• Pre-inspection - post-refund: After 40 days from the date of receipt of complete tax refund dossier. The tax authority will conduct an inspection at the taxpayer's headquarters and issue a tax refund decision. The provincial State Treasury will pay the tax refund to the taxpayer no later than 3 days from the date of receipt of the order to refund the state budget revenue.

Above is useful information about time, procedures and conditions for VAT refund. Contact 0966.002.638 for detailed advice.