1. What is a VAT refund? When is a business entitled to a refund?
A Value-Added Tax (VAT) refund is when the State reimburses the VAT amount that a business has already paid into the State budget or has not yet been deducted. When a business meets the specific VAT refund conditions, it will be reimbursed for the tax amount paid. The purpose of this policy is to avoid double taxation and support enterprises in investment or export activities.
Businesses are entitled to a VAT refund if they fall into the cases stipulated by law and simultaneously meet the corresponding conditions. Details will be explained in this article by Vina TPT.
2. Cases eligible for VAT refund under the latest regulations
| No. | Case eligible for VAT refund | Main conditions | Legal basis |
| 1 | Enterprises engaged in export activities | Exported goods and services are subject to a 0% VAT rate
Input VAT not yet credited is ≥ VND 300 million Must have valid customs documents and bank payment records |
Article 13, VAT Law 2024 |
| 2 | Investment projects not yet in operation | The investment project has been duly registered
No revenue has been generated Input VAT not yet credited is ≥ VND 300 million |
Article 13, VAT Law 2024 |
| 3 | Enterprise split, merger, consolidation, dissolution, or termination of operation | The enterprise no longer operates to deduct input VAT
Remaining input VAT has not yet been credited |
Article 13, Amended VAT Law 2008 |
| 4 | Foreign organizations and individuals not conducting business in Vietnam | Possess valid tax payment documents
Do not conduct regular business activities in Vietnam |
Circular 219/2013/TT-BTC, Article 18 |
| 5 | Non-refundable ODA projects | Not using the state budget to pay VAT
Possess valid confirmation from the donor |
VAT Law 2024, Circular 219 |
| 6 | Humanitarian aid and emergency relief | Must have a decision approving the receipt of aid
Must provide valid documents related to goods and input invoices |
Circular 219/2013/TT-BTC |
| 7 | Đối tượng ngoại giao (miễn trừ) | Must have confirmation from the State Protocol Department
Applied under international treaties |
Decree 134/2016/NĐ-CP |
| 8 | Authorized banks refunding VAT to foreigners on exit | Must have a goods management system
Must prepare a tax refund list according to the prescribed form |
Circular 92/2019/TT-BTC |
| 9 | Based on decisions of competent authorities | Must have an official document/decision on tax refund
Applied in special cases, subject to post-refund inspection |
Decree 49/2022/NĐ-CP |
| 10 | According to international treaties effective in Vietnam | Must fall under subjects clearly stated in the treaty
Must provide complete dossiers and supporting documents |
Law on International Treaties, Law on VAT |
| 11 | Enterprises applying only the 5% VAT rate but not yet fully credited | Input VAT not yet credited ≥ 300 million VND
After 12 months or 4 consecutive quarters – applicable from 01/07/2025 |
Amended VAT Law 2024 |
VAT 2025 Update:: The 2024 Value Added Tax (VAT) Law will officially take effect from July 1, 2025.
3. Conditions for VAT refund
Depending on the type of enterprise, the conditions for VAT refund may vary
3.1. For domestic enterprises
- Undeducted input VAT of at least VND 300 million
- Có Valid e-invoices andnon-cash payments for invoices from VND 20 million
- Not under tax enforcement measures or committing tax violations
- Proper and timely tax declaration
3.2. For exporting enterprises
- Export contracts, customs declarations, and bank payment documents
- Continuous undeducted VAT for 3 periods or at least VND 300 million in one period
- Exported goods must be cleared through customs
- No fraudulent invoice transactions
Note:From 2025, under the amended VAT Law, exporters with undeducted VAT over VND 100 million in a period may apply for refund earlier, reducing waiting time.
3.3. For investment projects
- Must have an Investment Registration Certificate
- No revenue generated, but large undeducted VAT incurred
- Separate bank account for the project
- Separate accounting for project expenses
3.4. For foreign organizations/individuals
- Valid proof of VAT paid in Vietnam
- Non-regular business activities
- Full compliance with tax declaration and refund procedures
4. Cases not eligible for VAT refund
(According to Circular 219/2013/TT-BTC, amended by Circular 130/2016/TT-BTC)
- Investment projects with insufficient charter capital contribution
If, by the time of filing the VAT refund application (from July 1, 2016 onwards), the enterprise has not contributed the full registered charter capital it will not be eligible for refund. Instead, the uncredited input VAT will only be carried forward to the next CIT period.
- Conditional investment sectors not meeting requirements under the Law on Investment
This includes cases where the enterprise has not obtained the necessary license, certificate of eligibility, or written approval from the competent authority.
- Violation of conditions during project implementation
If, during the implementation, the project has its license or certificate revoked, or is found no longer to meet conditional business requirements, VAT refund will be suspended from that point onward.
- Projects involving natural resource/mineral exploitation or production with ≥ 51% cost structure derived from natural resources
Applicable to projects licensed from July 1, 2016. The determination of the resource ratio is guided under Clause 23, Article 4 of Circular 219.
- Imported goods for export but not exported through the prescribed customs area
VAT refund is not eligible if export procedures are not carried out at the designated customs office.
- Exported goods not completing customs procedures at the customs-controlled area
In this case, VAT refund is also not eligible.
5/ Practical notes enterprises should keep in mind
- Do not consolidate VAT refund applications across multiple periods unless specifically guided by regulations.
- Carefully check the payment timeline and payment conditions of each invoice.
- For exporting enterprises, clearly keep records of customs declarations, bills of lading, and payment documents.
- Always review the validity of input invoices – especially those from new suppliers.
6/Conclusion
VAT refund conditions in Vietnam are constantly evolving with changes in legal regulations. Enterprises should regularly update themselves, carefully review their documentation, and strictly comply with the procedures to secure their entitlements. If your business is engaged in export activities and requires VAT refund support, working with a professional service provider will save you time and minimize risks.
Why choose a trusted VAT refund service provider?
VAT refund is a highly technical process that requires accuracy and strict compliance with legal regulations, especially for export enterprises. Partnering with a professional VAT refund service provider helps you:
- Shorten the processing time of refund applications
- Avoid tax risks, back-tax assessments, or refund rejections
- Optimize tax and financial strategies for your company
With over 10 years of experience, Vina TPT has been advising and assisting export enterprises and FDI companies in successfully obtaining VAT refunds.
Learn more about our VAT refund services: Vina TPT VAT Refund Consulting https://vietnamtax.net.vn/vi/tu-van-thue/hoan-thue-gtgt/
Contact Vina TPT now:
📞 (+84) 984 980 069
📧 vtpt-infor@classlib.net
🌐 https://vietnamtax.net.vn/
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