According to Decree No. 181/2025/ND-CP dated 01 July 2025, detailing the implementation of several articles of the Law on Value-Added Tax No. 48/2024/QH15, business establishments may be eligible for VAT refunds in certain specific circumstances.

1. VAT refund for export activities

Business establishments with exported goods or services may claim a VAT refund if their uncredited input VAT reaches VND 300 million or more, refundable on a monthly or quarterly basis.

Notes:

• Not applicable to goods imported and then exported to another country (except for imported materials used for manufacturing or processing export goods).
• For businesses engaged in both export and domestic consumption, input VAT for export must be separately recorded. If separation is not possible, input VAT is allocated based on the ratio of export revenue to total taxable revenue.
• The refundable VAT amount must not exceed 10% of export revenue during the refund period.

 

2. VAT refund for investment projects

Business establishments with investment projects (new or expansion) in the investment phase, or oil and gas exploration/development projects, may claim a VAT refund if uncredited input VAT reaches VND 300 million or more, after offsetting against VAT payable from ongoing business operations.

Important notes:

• For completed projects where VAT was not refunded during the investment phase, the business may submit a refund claim within 1 year from the completion date of the project or project phase.
• If the investment project ceases operation before any output VAT arises, the business must repay previously refunded VAT; any remaining unrefunded VAT will not be processed.
• Certain conditional business sectors may still be eligible for refunds if all required licenses or approvals are obtained.

 

3. VAT refund for goods and services subject to the 5% VAT rate

• Producers or service providers of goods/services subject to the 5%

VAT rate may claim a refund if uncredited input VAT reaches VND 300 million or more after 12 consecutive months or 4 consecutive quarters.

• For businesses operating under multiple VAT rates, input VAT must be separately recorded. If separation is not possible, the refundable VAT is calculated based on the ratio of 5%-rated revenue to total taxable revenue.

 

4. VAT refund upon dissolution or bankruptcy

Businesses applying the credit method may receive refunds for:

• Overpaid VAT, or
• Uncredited input VAT.

Note: Not applicable to investment projects terminated under Article 30. Branches or partnerships converted into cooperatives or cooperative unions may inherit and continue to credit or claim refunds for these VAT amounts.

 

5. VAT refund for goods purchased in Vietnam carried upon exit

• Applicable to: foreigners, and overseas Vietnamese (excluding flight crews or ship crews).
• Goods must be purchased in Vietnam and carried out upon departure.
• Refund documentations, procedures, and methods are specified in Appendix IV of Decree 181/2025/ND-CP.

 

6. VAT refund for ODA-funded or non-refundable aid programs/projects

• Program owners, main contractors, or organizations designated by donors to manage projects may claim VAT refunds for goods and services purchased in Vietnam for project implementation.
• Organizations using non-refundable aid or humanitarian aid funds are likewise eligible for VAT refunds already paid.

 

7. VAT refund for entities entitled to diplomatic immunity and privileges

• Eligible diplomatic entities purchasing goods or services in Vietnam may receive refunds for VAT paid.

 

8. VAT refund under international treaties

• Businesses may receive VAT refunds pursuant to decisions issued by competent authorities under Vietnamese law or under international treaties to which Vietnam is a signatory.

 

9. Conditions for VAT refund eligibility

Business establishments eligible for VAT refunds must:

• Paying VAT under the credit (input–output) method; properly maintain accounting books and supporting documents; and maintain bank accounts under their tax identification number.
• Satisfy all conditions for input VAT credit and not fall under prohibited credit cases.
• Ensure the seller has duly declared and paid VAT corresponding to invoices submitted for refund.
• Comply with filing requirements and submit complete VAT refund documentations to the competent tax authority, which will classify the dossier as “refund first, audit later” or “audit first, refund later.”

Le Vo