1.What is a VAT Refund and When is a Business Entitled to it?
Value-Added Tax (VAT) refund refers to the process by which the State reimburses the amount of VAT that a business has either paid into the State budget or has not yet been deducted. When a business meets specific VAT refund conditions, it will be entitled to receive back the paid tax amount. The purpose of this policy is to prevent double taxation and to support businesses in investment or export activities.
Businesses are eligible for VAT refunds when they fall under the cases stipulated by law and meet the specific refund conditions applicable to their business type. Detailed information will be provided by Vina TPT in this article.
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 rateInput 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 registeredNo 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 VATRemaining 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 documentsDo 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 VATPossess valid confirmation from the donor | VAT Law 2024, Circular 219 |
| 6 | Humanitarian aid and emergency relief | Must have a decision approving the receipt of aidMust 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 DepartmentApplied under international treaties | Decree 134/2016/NĐ-CP |
| 8 | Authorized banks refunding VAT to foreigners on exit | Must have a goods management systemMust 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 refundApplied 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 treatyMust 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 VNDAfter 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. Key Notes on VAT Refund for Businesses
- 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. Simplify Your VAT Refund with Vina TPT’s Professional Support
Navigating the VAT refund process in Vietnam can be complex, especially with changing tax regulations and documentation requirements. Vina TPT offers professional support to help businesses simplify every step, from eligibility assessment to refund application and follow-up with tax authorities. With deep expertise in Vietnamese tax law, our team ensures accuracy, compliance, and maximum refund value for your company. Partnering with Vina TPT means saving time, avoiding costly errors, and gaining peace of mind knowing your VAT refund is handled by trusted professionals. Let Vina TPT streamline your refund process efficiently and transparently.
Contact Vina TPT today to simplify your VAT refund process!
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