VAT REFUND RULE IN VIETNAM

In Vietnam, VAT refunds are only granted in certain cases, including:

  • Exporters having excess input VAT credits over VND300 million. The refunds are provided on a monthly or quarterly basis, in line with the VAT declaration period of the taxpayer. The amount of input VAT relating to export sales (meeting the criteria for VAT refunds) that can be refunded to a taxpayer must not exceed 10% of its export revenue. VAT refunds are available to companies which import goods and then export them without further processing subject to various conditions;
  • New projects of companies adopting VAT deduction method which are in the pre-operation investment phase and have accumulated input VAT credits over VND 300 million. Exceptions include conditional investment projects which do not satisfy the requirements , or investment projects of companies whose charter capital has not yet been contributed as regulated; and
  • Certain ODA projects, diplomatic exemption, foreigners buying goods in Vietnam for consumption overseas.

===> In other cases where a taxpayer’s input VAT for a period exceeds its output VAT, it will have to carry the excess forward to offset against future output VAT.

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