Deploying VAT refund for goods of foreigners carrying out when leaving country

On December 31, 2019, the Ministry of Finance issued Circular 92/2019/TT-BTC amending and supplementing Circular 72/2014/TT-BTC on VAT refund for goods of foreigners and Vietnamese people living overseas carrying out when leaving country. It took effect from July 1.

VAT refund for foreigners at Da Nang International Airport.

The General Department of Vietnam Customs said that, at present, the VAT refund management system for foreigners (referred to as the system for short) has not met requirements for integrating, storing and exchanging information related to the VAT refund for foreigners between agencies, organisations and individuals under provisions of Circular 92/2019/TT-BTC. While waiting for the system to be finalised, the General Department of Vietnam Customs instructed units to implement Clause 13, Article 1 of Circular 92/2019/TT-BTC as follows:

Customs authorities will conduct a physical inspection for goods at the invoice check counter cum tax refund declaration. In particular, inspection and comparison to verify whether each content matches the information on the passport or the exit document and information on the invoice cum tax refund declaration and regulations on goods eligible for tax refund as stipulated in Clause 8, Article 1 of Circular 92/2019/TT-BTC.

At the same time, physical inspection of goods must be conducted to be complied with the risk management principle. Recording test results; determine goods, calculate VAT amount to be refunded to foreigners in accordance with Article 12 of Circular 72/2014/TT-BTC; signing, stamping to confirm inspection on the invoice cum tax refund declaration.

Update information of foreigners and the actual amount of VAT refunded to the database of customs authorities about VAT refund for foreigners on exit.

For banks, the General Department of Vietnam Customs recommended they should comply with the provisions of Clause 14, Article 1 of Circular 92/2019/TT-BTC. Banks should check boarding passes and ships; the invoice cum tax refund declaration has been checked and sealed by the customs office; write the flight number, date and flight on the invoice cum tax refund declaration.

Pay the amount of tax refund to the foreigner in accordance with the actual amount of VAT refunded to the foreigner calculated by the customs authorities on the invoice cum tax refund declaration, and signed and stamped to confirm payment of refund tax for foreigners on invoices cum tax refund declaration.

After that, returning the foreigner's boarding pass and keep tax refund dossiers in accordance with regulations.