In practice, the amount of VAT tax refund that a business may receive is often significant, especially when the deductible input VAT eligible for refund reaches VND 300 million or more. For this reason, tax refund procedures are always a matter of concern for domestic enterprises, foreign-invested enterprises (FDIs), and accounting departments.
The article below summarizes the cases eligible for VAT tax refund under the Law on Value Added Tax 2024, while clarifying the applicable conditions and important notes that businesses should understand when carrying out refund procedures.
1. What is a VAT tax refund?
A VAT tax refund is the return by the tax authority of VAT amounts that an enterprise or individual has paid or is entitled to deduct, provided that the legal conditions are satisfied. This typically applies when input VAT exceeds output VAT or when special tax incentive policies are available.
Carrying out a VAT tax refund helps reduce financial pressure on businesses, improve working capital, and encourage investment, exports, and other incentivized economic activities. It also helps ensure fairness in tax collection and avoids situations of overpayment.
Example: Company H exports fashion products (T-shirts) and is not required to pay output VAT because the applicable VAT rate is 0%. During the period, the company incurred VND 70 million in input VAT for raw materials. Under the regulations, Company H may receive a VAT tax refund of VND 70 million from the tax authority to offset the tax already paid.
2. Cases eligible for VAT tax refund
Under Article 15 of the Law on Value Added Tax 2024 and the related guiding documents, businesses and organizations may be entitled to a VAT tax refund in certain situations.
Below are 9 common cases eligible for VAT tax refund under the current regulations.
Case 1: VAT tax refund for exported goods and services
| Case | Condition | Tax treatment |
| Business establishments with exported goods or services during the tax declaration period | Input VAT not yet fully deducted exceeds VND 300 million | Eligible for VAT tax refund on a monthly or quarterly basis |
| Input VAT not yet fully deducted is below VND 300 million | Carried forward to the next tax declaration period for continued deduction |
Pursuant to Clause 1, Article 15 of the Law on Value Added Tax 2024 and Article 29 of Decree 181/2025/ND-CP, businesses engaged in export activities may be entitled to a VAT tax refund in the following cases:If a business has both exported goods and domestic sales, it must separately account for the input VAT relating to export activities.
If separate accounting is not possible, the input VAT for exported goods is determined based on the ratio of export revenue to total taxable revenue.
After offsetting against the VAT payable for domestic sales, if the remaining input VAT is VND 300 million or more, the business may be granted a VAT tax refund. However, the refund amount must not exceed 10% of export revenue.
Some export-related cases eligible for refund include:
| Case | Eligible subject |
| Export under entrusted export arrangement | The business that entrusts goods for export |
| Export processing | The business entering into a processing contract with a foreign party |
| Export for overseas construction projects | The business exporting materials or goods for overseas projects |
| On-the-spot export | The business exporting goods on the spot |
Note: A VAT tax refund is not available for imported goods that are subsequently exported to another country without processing or manufacturing in Vietnam.
Case 2: VAT tax refund for investment projects
Under Clause 2, Article 15 of the Law on Value Added Tax 2024 and Article 30 of Decree 181/2025/ND-CP, a business with an investment project may receive a VAT tax refund if the following conditions are met:
| Case | Tax treatment |
| A business applying the deduction method has a new or expanded investment project | Input VAT arising during the investment phase is offset against VAT payable from current business activities |
| After offsetting, the remaining input VAT is VND 300 million or more | Eligible for VAT tax refund |
If the investment project has been completed but the business did not apply for refund during the investment phase, it may still submit a VAT tax refund dossier within one year from the project completion date.
Note: A VAT tax refund is not available in the following cases:
- The enterprise has not fully contributed its charter capital as registered
- The project belongs to a conditional business sector but the required conditions have not yet been met
- The business fails to maintain the required business conditions during operation
- The project involves exploitation of natural resources or minerals (except oil and gas exploration and field development projects), or production projects using extracted minerals that have been processed into other products as prescribed by law
Case 3: VAT tax refund for goods and services subject to the 5% VAT rate
Under Clause 3, Article 15 of the Law on Value Added Tax 2024 and Article 31 of Decree 181/2025/ND-CP, businesses that only produce or supply goods and services subject to the 5% VAT rate may receive a VAT tax refund if:
| Case | Condition | Tax treatment |
| Business establishments supplying only goods and services subject to the 5% VAT rate | Input VAT not yet deducted reaches VND 300 million or more after 12 consecutive months or 4 consecutive quarters | Eligible for VAT tax refund |
If the business produces or supplies multiple categories of goods or services subject to different VAT rates, it must separately account for the input VAT of the activities subject to the 5% rate.
If separate accounting is not possible, the input VAT for such activities is determined based on the ratio of revenue from goods and services subject to the 5% VAT rate to total taxable revenue during the refund period.
After offsetting against VAT payable from other business activities, if the remaining input VAT is VND 300 million or more, the business may be considered for a VAT tax refund.
Case 4: VAT tax refund upon dissolution or bankruptcy
Under Clause 4, Article 15 of the Law on Value Added Tax 2024 and Article 32 of Decree 181/2025/ND-CP:
A business applying the deduction method, upon dissolution or bankruptcy, may be entitled to a VAT tax refund if:
- It has overpaid VAT, or
- It still has input VAT not yet fully deducted
In cases where a cooperative group is converted into a cooperative, or a branch is dissolved, the enterprise or cooperative inheriting the business may continue to deduct or request a VAT tax refund for the uncredited VAT amount in accordance with the regulations.
Case 5: VAT tax refund for goods carried upon exit from Vietnam
Under Clause 5, Article 15 of the Law on Value Added Tax 2024 and Article 33 of Decree 181/2025/ND-CP:
| Case | Tax treatment |
| Foreigners or overseas Vietnamese purchasing goods in Vietnam and carrying them abroad upon exit | Eligible for VAT tax refund corresponding to the value of the goods carried |
Case 6: VAT tax refund for ODA-funded programs and projects
Under Clause 6, Article 15 of the Law on Value Added Tax 2024:
| Case | Tax treatment |
| Program owners, project owners, main contractors, or organizations designated by foreign donors to manage ODA-funded programs/projects purchasing goods and services in Vietnam for project implementation | Eligible for VAT tax refund for VAT paid on goods and services purchased in Vietnam |
| Organizations in Vietnam using non-refundable aid or humanitarian aid from foreign organizations or individuals to purchase goods and services for the program or project | Eligible for VAT tax refund for VAT paid on goods and services used for the project |
Case 7: VAT tax refund for subjects entitled to diplomatic privileges and immunities
Under Clause 7, Article 15 of the Law on Value Added Tax 2024:
| Case | Tax treatment |
| Subjects entitled to diplomatic privileges and immunities purchasing goods and services in Vietnam | Eligible for VAT tax refund for the VAT amount shown on the invoice |
Case 8: VAT tax refund under international treaties
Under Clause 8, Article 15 of the Law on Value Added Tax 2024:
Organizations or business establishments may receive a VAT tax refund if such refund is granted under a decision of the competent authority or under an international treaty to which Vietnam is a party.
Case 9: VAT tax refund under a decision of a competent authority
In addition to the cases above, a business establishment may also receive a VAT tax refund when a competent state authority issues a refund decision in accordance with the law.
3. Frequently asked questions about VAT tax refund
Question 1: How long does a VAT tax refund take?
After receiving the VAT tax refund dossier, the tax authority will classify it into two categories:
Case 1: Refund first, inspection later
Within 6 working days from the date the tax authority issues a notice of dossier acceptance, the tax authority will take one of the following actions:
- Issue a refund decision if the dossier is eligible
- Transfer the dossier to the “inspection before refund” category if inspection is required
- Issue a notice of non-refund if the dossier does not meet the conditions
If the tax authority finds that the dossier contains unclear information or discrepancies compared with its data, it may request the taxpayer to provide explanations or supplement the dossier.
Note: The time taken by the taxpayer to provide explanations or supplement the dossier is not included in the refund processing time.
Case 2: Inspection first, refund later
For dossiers subject to prior inspection, the tax authority will carry out an inspection or audit at the taxpayer’s premises to determine the refundable VAT amount.
The processing time in this case must not exceed 40 days from the date the tax authority issues the notice of dossier acceptance.
After the inspection is completed, the tax authority will issue either a refund decision or a notice of non-refund if the dossier is not eligible.
Question 2: After receiving the refund decision, how long does it take to receive the money?
After issuing the refund decision, the tax authority will transfer the refund amount to the taxpayer within 3 working days if the refund is made via bank account.
In some cases where further verification is required, the payment period may be extended but must not exceed 6 working days from the date of the refund decision.
Question 3: What is the difference between VAT tax refund and VAT deduction?
A VAT tax refund means the tax authority returns the remaining input VAT not yet fully deducted to the business in certain cases prescribed by law, such as export activities, investment projects, or subjects enjoying special incentives.
By contrast, VAT deduction means the business offsets input VAT against output VAT payable. If, after offsetting, some input VAT remains unused, that amount is carried forward to the next tax declaration period for continued deduction.
This is also a common issue businesses look into when they want to understand how to get VAT refund in Vietnam in each specific situation.
Question 4: What is the minimum amount required to be eligible for VAT tax refund?
Under the current regulations, a business is only considered for a VAT tax refund if the input VAT not yet deducted is VND 300 million or more.
If the remaining undeducted input VAT is below VND 300 million, the business will not receive a refund and must continue carrying it forward to the next declaration period for deduction.
Although the rules on VAT tax refund are clearly provided in the law, in practice the process of preparing the dossier and working with the tax authority is often quite complicated, especially for businesses with limited experience in handling refund dossiers.
Even a minor error in the dossier, invoice, or supporting document may cause the tax authority to request additional documents or prolong the processing time. For this reason, many businesses choose to cooperate with a professional tax consulting firm to ensure that the dossier is properly prepared and the refund process is optimized.
4. VAT tax refund service process at Vina TPT
Typically, the VAT tax refund support process is implemented through the following steps:
Step 1: Consultation and refund eligibility assessment
Vina TPT discusses with the enterprise to understand its tax status, business model, and the specific refund case. Based on this information, our specialists will evaluate the eligibility for a VAT tax refund and propose an appropriate implementation approach.
Step 2: Review and preparation of the refund dossier
Vina TPT’s specialists assist the enterprise in reviewing invoices, supporting documents, tax declarations, and other relevant materials to ensure the dossier is complete and compliant before submission to the tax authority.
Step 3: Submission of the dossier and working with the tax authority
The dossier is submitted to the tax authority (directly, by post, or electronically). Vina TPT supports communication and explanations if additional information is required.
Step 4: Monitoring and receiving the refund amount
After the dossier is approved, the tax authority issues the refund decision and transfers the refund amount to the enterprise’s bank account.
The processing time for a VAT tax refund dossier is typically:
- Approximately 6 working days for cases of refund first – inspection later.
- Up to 40 working days for cases of inspection first – refund later.
If your business needs detailed advice on VAT tax refund conditions or support in preparing a refund dossier, the specialists at Vina TPT are ready to assist so that your business can complete the procedure quickly and in compliance with the regulations.