VAT refund for foreigners at the store has not been stipulated by law

VCN – At the proposal of the National Assembly Deputies of Lam Dong province on regulations on VAT refund for international tourist and overseas Vietnamese at the store to encourage spending, the Ministry of Finance said Vietnam's law does not have regulations on VAT refund for foreigner’s right at the store.
Process of handling overpaid tax of the previous year Process of handling overpaid tax of the previous year
Preventing fraud of VAT refund Preventing fraud of VAT refund
Removing difficulties in VAT refund for investment projects Removing difficulties in VAT refund for investment projects

According to the National Assembly Deputies of Lam Dong province, currently, the situation of the Covid-19 pandemic in Vietnam has been controlled, and international tourists and overseas Vietnamese visiting their homeland are increasing, but the per capita expenditure of international tourists to Vietnam is not high.

Therefore, it is necessary to encourage them to spend. The solution to this problem is to facilitate the VAT refund method for guests. Therefore, the National Assembly Deputies of Lam Dong province proposed that it is necessary to have regulations on VAT refund for international tourists and overseas Vietnamese right at the place where they buy goods to encourage them to increase their spending.

Inspecting luggage of passengers on entry and exit at Noi Bai international airport. Photo: Noi Bai Customs
Inspecting luggage of passengers on entry and exit at Noi Bai international airport. Photo: Noi Bai Customs

In this regard, according to the Ministry of Finance, from July 1, 2014, the implementation of VAT refund for goods purchased by foreigners in Vietnam and brought with them upon exit has been specified in Law 31/2013/QH13 amending and supplementing a number of articles of the Law on VAT; Decree 209/2013/ND-CP dated December 18, 2013 of the Government detailing and guiding the implementation of a number of articles of the Law on VAT.

Pursuant to Law 31/2013/QH13, Decree 209/2013/ND-CP, the Ministry of Finance issued Circular 72/2014/TT-BTC dated May 31, 2014 providing for VAT refund for goods brought by foreigners, oversea Vietnamese upon exit (hereinafter referred to as foreigners) was amended and supplemented in Circular 92/2019/TT-BTC dated December 31, 2019.

The Ministry of Finance believes that, after the implementation of Circular 72/2014/TT-BTC, Circular 92/2019/TT-BTC has proven that the VAT refund policy for foreigners on exit is consistent with the international practice and Vietnam’s conditions and circumstances; promotes foreigners to increase their spending in Vietnam, thereby developing tourism, exporting goods, and promoting national culture; boosting international integration and contributing to perfecting the VAT policy.

Accordingly, the tax refund process for foreigners is as follows:

Foreigners (including foreigners, overseas Vietnamese) wishing to refund VAT on goods brought upon exit will buy goods at VAT refund shops and receive VAT refund, VAT invoices and tax refund declarations issued by the shops.

In which, in order to be identified as a VAT refund shop, the store management enterprise must submit an application to the tax office and a VAT refund shop location must also be stated by the enterprise in the application.

In addition, most VAT refund shops are domestic stores. In addition to selling normal goods, they provide goods subject to VAT refunds for foreigners.

When foreigners exit at the tax refund border gate and bring goods purchased at the VAT refund shops and wish to refund tax, they will present the VAT invoice and tax refund declaration to the customs office at the border gate for checking and determining the refunded VAT amount. In particular, the condition for tax refund is that the goods must be unused, still in their original condition, and the VAT invoice and tax refund declaration must be made within 60 days up to the exit date.

Finally, based on the confirmation of the customs office on the VAT invoice and tax refund declaration, the commercial bank as the tax refund agent (with a transaction office located at some international border gates) will refund the tax for foreigners on exit. The amount of VAT refunded to foreigners is equal to 85% of the total VAT amount of goods eligible for tax refund on the invoice. Tax refund agents are entitled to a tax refund service fee of 15% of the total VAT amount.

The Ministry of Finance also said that the implementation of VAT refund for foreigners is paid by a tax refund agent which is a commercial bank in an isolated area of ​​the international airport.

Series of measures to prevent fraud in value-added tax refund Series of measures to prevent fraud in value-added tax refund

VCN - In order to prevent fraud to appropriate value-added tax refunds, the General Department of Vietnam ...

According to the Ministry of Finance, Vietnamese law has not provided for the payment of VAT refunds to foreigners right at the VAT refund shops as proposed by Deputies in Lam Dong province. The Ministry of Finance would like to note the above proposal to study and amend the provisions of Circular 72/2014/TT-BTC and Circular 92/2019/TT-BTC in accordance with regulations.
By Nu Bui/ Huyen Trang

Related News

Credit continues to increase at the end of the year, room is loosened to avoid "surplus in some places - shortage in others"

Credit continues to increase at the end of the year, room is loosened to avoid "surplus in some places - shortage in others"

VCN - Credit demand continues to increase at the end of the year, thereby helping banks compete through continuing to adjust interest rates appropriately.
Bad debt at banks continues to rise in both amount and ratio

Bad debt at banks continues to rise in both amount and ratio

VCN - After nine months of 2024, bad debt balances at banks continue to rise, potentially posing risks to the banking sector if control measures aren't implemented.
Green credit proportion remains low due to lack of specific evaluation criteria

Green credit proportion remains low due to lack of specific evaluation criteria

VCN - According to the State Bank of Vietnam (SBV), as of the end of September 2024, 50 credit institutions had outstanding green credit balances exceeding VND 665 trillion, accounting for over 4.5% of the total outstanding loans in the economy.
Control of major shareholders in banks

Control of major shareholders in banks

VCN - In compliance with the provisions of the Law on Credit Institutions 2024, banks have made public the list of information on shareholders owning 1% or more of shares. This is expected to block the “octopus tentacles” of cross-ownership.

Latest News

Resolve problems related to tax procedures and policies for businesses

Resolve problems related to tax procedures and policies for businesses

VCN - Immediately after the end of the Dialogue Conference between the Ministry of Finance and enterprises on tax and customs policies and administrative procedures in 2024, the General Department of Customs proactively removed obstacles related to tax procedures and policies for the business community.
New regulations on procurement, exploitation, and leasing of public assets

New regulations on procurement, exploitation, and leasing of public assets

VCN - Decree No. 114/2024/ND-CP, which amends and supplements certain articles of Decree No. 151/2017/ND-CP detailing the implementation of the Law on Management and Use of Public Assets, introduces significant changes. These include updates on authority, methods of asset exploitation in agencies and units, plans for leasing, joint ventures, and partnerships in public service units, as well as centralized procurement procedures.
Actively listening to the voice of the business community

Actively listening to the voice of the business community

VCN - Recognizing the Customs-business relationship as a long-term partnership, the Customs authority has organized hundreds of dialogues with businesses since the beginning of the year. These efforts aim to promptly address challenges, resolve obstacles, and facilitate import-export activities. Such meetings offer an opportunity for the Customs authority and the business community to exchange, share insights, and find solutions to enhance operational quality and efficiency.
Step up negotiations on customs commitments within the FTA framework

Step up negotiations on customs commitments within the FTA framework

VCN - Promoting negotiations on customs commitments within the framework of free trade agreements (FTAs) plays an important role in facilitating import and export activities. These commitments not only help optimize the customs clearance process but also minimize costs and risks for businesses, opening up great opportunities for Vietnamese goods to access deeper into the international market.

More News

Proposal to amend regulations on goods circulation

Proposal to amend regulations on goods circulation

VCN - To perfect the policy on customs procedures, inspection and supervision, enterprises and associations have contributed many ideas from practical activities. Thereby, the Drafting Committee (General Department of Customs) has more perspectives to build policies to meet the goal of facilitating trade and ensuring state management of customs.
Review of VAT exemptions for imported machinery and equipment

Review of VAT exemptions for imported machinery and equipment

VCN - The General Department of Vietnam Customs has directed provincial and municipal customs departments to review, inspect, and address issues related to the implementation of VAT exemption policies for specialized machinery and equipment used in agricultural production.
Customs tightens oversight on e-commerce imports

Customs tightens oversight on e-commerce imports

VCN - The General Department of Vietnam Customs has issued new directives to enhance the management of imported goods transacted through e-commerce platforms, addressing ambiguities and ensuring consistent enforcement across provincial and municipal customs departments.
Bringing practical experience into customs management policy

Bringing practical experience into customs management policy

VCN - At the workshop to collect opinions from Southern Customs units on the draft Decree amending and supplementing Decree 08/2015/ND-CP dated January 21, 2015 of the Government; the draft Circular amending and supplementing Circular 38/2015/TT-BTC dated March 25, 2015 and Circular 39/2018/TT-BTC dated April 20, 2018 of the Minister of Finance, organized by the General Department of Customs last weekend, many Southern Customs units contributed specific contents from practical operations in the locality.
Businesses anticipate new policies on customs procedures and supervision

Businesses anticipate new policies on customs procedures and supervision

VCN - With this year’s import-export turnover estimated at nearly US$800 billion and forecasting to surpass this milestone next year, the business community holds high expectations for upcoming amendments and supplements to customs management, procedures, and supervision policies. These changes are expected not only to facilitate trade but also to enhance state management efficiency and support economic development.
Do exported foods need iodine supplementation?

Do exported foods need iodine supplementation?

VCN - Currently, Vietnamese processed food products, including seafood products, have been exported to more than 160 countries, and no country has yet required that "salt used in food processing must be salt with added iodine".
Amendments to the Value-Added Tax Law passed: Fertilizers to be taxed at 5%

Amendments to the Value-Added Tax Law passed: Fertilizers to be taxed at 5%

VCN - With the majority of National Assembly deputies voting in favor, the National Assembly officially approved the revised Value-Added Tax (VAT) Law during its afternoon session on November 26, 2024, as part of the 8th session's agenda.
Proposal to change the application time of new regulations on construction materials import

Proposal to change the application time of new regulations on construction materials import

VCN - To comply with the circular on quality management of construction materials, many businesses importing this item are complaining about difficulties and asking for an extension of the implementation time.
Ministry of Finance proposed to reduce VAT by 2% in the first 6 months of 2025

Ministry of Finance proposed to reduce VAT by 2% in the first 6 months of 2025

VCN - In order to promote the early recovery and development of production and business activities, contributing back to the State budget, the Ministry of Finance proposed to continue reducing 2% of VAT on groups of goods and services currently subject to a tax rate of 10% in the first 6 months of 2025.
Read More

Your care

Latest Most read
Resolve problems related to tax procedures and policies for businesses

Resolve problems related to tax procedures and policies for businesses

VCN - Immediately after the end of the Dialogue Conference between the Ministry of Finance and enterprises on tax and customs policies and administrative procedures in 2024, the General Department of Customs proactively removed obstacles related to tax pr
New regulations on procurement, exploitation, and leasing of public assets

New regulations on procurement, exploitation, and leasing of public assets

Decree No. 114/2024/ND-CP, which amends and supplements certain articles of Decree No. 151/2017/ND-CP detailing the implementation of the Law on Management and Use of Public Assets, introduces significant changes.
Actively listening to the voice of the business community

Actively listening to the voice of the business community

Recognizing the Customs-business relationship as a long-term partnership, the Customs authority has organized hundreds of dialogues with businesses since the beginning of the year
Step up negotiations on customs commitments within the FTA framework

Step up negotiations on customs commitments within the FTA framework

VCN - In addition to promoting negotiations on customs commitments within the framework of FTAs ​​under negotiation, the General Department of Customs actively supports businesses to effectively utilize commitments in signed FTAs, especially CPTPP, EVFTA,
Proposal to amend regulations on goods circulation

Proposal to amend regulations on goods circulation

VCN - The Vietnam Association of Maritime Agents, Brokers and Services has proposes to amend and supplement regulations related to the transport of goods subject to customs supervision.
Mobile Version