In practice, value-added tax (VAT) refunds are not just a procedure for "recovering cash flow," but also a test of competence. Compliance – Internal Control – Proof of TransactionsA single misstep (invalid invoice, incomplete payment, inconsistent accounting, or an excluded case) can lead to a business being penalized. refuse refundThis prolongs the processing time or results in the need for retroactive tax collection.
The core principles of tax deductions and refunds , and conditions for proof This is primarily regulated in the chapter on tax deductions and refunds of the Value Added Tax Law No. 48/2024/QH15.
1. Cases eligible for VAT refund (according to Article 15 of Law 48/2024/QH15)
1.1. VAT refund for exported goods and services
According to Clause 1 of the Article According to Law No. 48/2024/QH15 on Value Added Tax, if a business exports goods and services during the month/quarter, input tax amount that has not been fully deducted ≥ 300 million VND Then the payment is processed monthly/quarterly.
- In the case of both exporting and selling domestically: it is required separate accounting Input tax for exports; if not accounted for separately, determine according to ratio of export revenue to total taxable revenue of the period.
- Tax refund amount for exports not exceeding 10% of export revenueIf the amount has not reached the 300 million VND threshold, it will be carried over to the next period.
The Ministry of Finance has issued Circular 69 / 2025 / TT-BTC Instructions on how to determine the amount of input VAT to be refunded for exported goods and services. The method for calculating the input tax allocation rate and controlling the 10% export revenue threshold have been specified in detail. Article 7 of Circular 69/2025/TT-BTCBusinesses should refer to this guide to accurately calculate the amount of tax eligible for refund.
1.2. VAT refund for investment projects
TSection 2Article 15 of the Value Added Tax Law No. 48/2024/QH15 states that business establishments/enterprises with investment projects, if they have input tax that has not been fully deducted, may be subject to these regulations. ≥ 300 million VND Then there is a basis for considering a refund in accordance with regulations.
Notably, the law also sets out exclusionary and compliance conditions (the "non-refundable" section below) related to charter capital contributions, industry requirements, and deadlines for filing applications.
Businesses with investment projects need to pay attention to fulfilling the conditions regarding capital contribution, business licenses for conditional business sectors, etc., to avoid falling into problematic situations. Tax refunds temporarily suspended.If a tax refund application is found to be ineligible, the tax authorities will... Stop refunds and switch to deductions. from the time of the violation.
1.3. VAT refund for businesses subject to a 5% tax rate.
According to Clause 3, Article 15 of the Value Added Tax Law No. 48/2024/QH15, enterprise subject to a tax rate of only 5%. (For example, businesses selling essential goods subject to a 5% tax) will be considered for a tax refund. per year (or every 4 quarters), if after 12 consecutive months the amount of uncredited input tax reaches... ≥ 300 million VNDIn the case where a business has multiple activities with various tax rates In that case, tax refunds under this category will not apply, and any tax refund (if applicable) will be calculated separately. according to allocation ratio between activities subject to a 5% tax rate and activities subject to other tax rates as prescribed by the Government.
Detailed regulations are as follows: Article 31 Decree 181/2025/ND-CP This requires businesses, in cases where there are multiple tax rates, to... separate accounting Input tax for taxable activities is 5%. If separate accounting is not possible, the input tax allocated to the 5% activity will be calculated accordingly. The revenue share is 5% of the total taxable revenue. The amount of input tax eligible for refund also needs to meet the threshold. ≥ 300 million VND After offsetting against taxes payable from other activities, similar to the mechanism used for exports.
The Ministry of Finance has issued guidelines on the method for determining the amount of tax to be refunded for the 5% activity at Article 8 of Circular 69/2025/TT-BTCThis helps businesses make accurate calculations when filing tax refund applications.
This approach encourages businesses producing and trading essential goods to pay lower tax rates, ensuring that capital is not tied up for too long due to input taxes. Businesses should maintain transparent documentation and records to demonstrate the ratio of revenue to input tax for their 5% operations when tax authorities conduct audits.
1.4. Tax refund upon dissolution or bankruptcy
According to Clause 4, Article 15 of the Value Added Tax Law No. 48/2024/QH15, businesses paying using the deduction method are entitled to a refund if applicable. overpaid VAT or Undeducted input VAT at the time of dissolution/bankruptcy.
According to Clause 4, Article 15 of Law 48/2024/QH15, for enterprises (or dependent units) end of operationIf the VAT tax return shows a tax surplus (due to paying more than the actual amount or having outstanding input tax that has not been deducted), then the business is entitled to... settle and refund that tax balance.This regulation ensures that businesses do not lose the tax capital they have paid when they leave the market.
The law also mentions special caseif one cooperative currently paying taxes using the deduction method, converting to cooperativeOnly then can a cooperative be established. Inherit all remaining VAT amounts (overpaid or uncredited input VAT). from the former cooperative group. The cooperative will continue to be eligible for tax deductions or refunds according to regulations, instead of having to file a separate tax refund application for the former cooperative group.
Decree 181/2025/ND-CP Article 32 also clearly states: Businesses that are dissolved or go bankrupt and wish to claim a tax refund must Complete all legal procedures. Regarding dissolution, bankruptcy, and compliance with tax management regulations. In addition, the decree adds that branch If a business that pays taxes using the deduction method is dissolved, any excess or uncredited VAT paid by the branch will be inherited by the parent company (similar to the case of a cooperative group becoming a cooperative). This means the parent company can continue to deduct or receive a refund of the excess tax from the dissolved branch, preserving its tax rights.
Before proceeding with the dissolution process, businesses should carefully compare their VAT figures with the tax authorities. If there is any overpayment of tax or any remaining tax deductions, they should... Prepare tax settlement documents and process tax refunds promptly.This helps businesses recover the maximum amount of capital before ceasing operations.
1.5. Tax refund for goods purchased in Vietnam by foreigners and Vietnamese citizens residing abroad, which they take with them when exiting the country.
According to Clause 5, Article 15 of the Value Added Tax Law No. 48/2024/QH15, VAT refund for departing passengers., with the aim of encouraging tourism and shopping.
Whereby, foreigner , and Overseas Vietnamese (holding a foreign passport or international travel document), except airline crew members, seafarers (people who frequently enter and exit the country due to the nature of their work) When purchasing goods in Vietnam, the value-added tax (VAT) paid on those goods will be refunded upon departure from Vietnam through international border gates, provided the goods are carried by the buyer. This current regulation continues the policy of tax refunds for foreigners purchasing goods in Vietnam (also known as the "VAT refund program").VAT refund for passengers
The government assigned the task of specifying the details regarding... Documents, procedures, amount of tax to be refunded, and refund method. For this case, in fact, the tax refund program for departing passengers is implemented at international airports and eligible border crossings, in coordination with customs and commercial banks.
Businesses selling tax-refundable goods to departing customers must register for the program with the tax authorities and comply with invoicing regulations. VAT refundCustomers departing the country should take note of the following: Minimum value eligible for tax refund, applicable border crossing, and exit deadline. Use the invoice to qualify for a tax refund.
1.6. Tax refunds for programs and projects using non-refundable official development assistance; non-refundable aid; and humanitarian aid.
According to Clause 6, Article 15 of Law 48/2024/QH15, the entities as stipulated (program/project owners; main contractors; organizations designated by the donor to manage; organizations in Vietnam using aid funds, etc.) are entitled to a refund of taxes paid when purchasing goods and services in Vietnam for the program/project. This is a case of tax exemption and refund aimed at encouraging and facilitating the acceptance of aid. foreign aid.
Therefore, two groups of subjects The main items eligible for VAT refund in this case include:
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The grant-funded ODA project owner, the main contractor of the grant-funded ODA project, or the project management organization designated by the donor. – Refunded the VAT paid when purchasing goods and services in Vietnam for the implementation of non-refundable ODA projects.
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Organizations in Vietnam utilize humanitarian aid and non-refundable foreign aid funds. – They are entitled to a refund of the VAT paid on goods and services purchased for the purpose of that aid program or project.
Therefore, regardless of whether it is a non-refundable ODA project received by the Government or humanitarian aid to non-governmental organizations, charities, etc., the VAT portion of the expenses in Vietnam is always covered by the budget. refund This is for the recipient of the aid, ensuring that all aid funds are used for the project's intended purpose.
Decree 181/2025/ND-CP (Article 34) retains the content of the law but expands its scope in more detail. Specifically, main contractor including The main contractor's executive office in Vietnam., and organization designated by the donor including representative office of the sponsor or The organization responsible for managing and implementing the project is designated by the donor. – all are eligible for VAT refund for project expenditures. This strict regulation ensures all units involved in implementing ODA/aid projects They all receive tax refund benefits, avoiding complications during implementation.
ODA project owners and those involved in aid projects should prepare complete documentation for the purchase of goods and services domestically (legitimate VAT invoices) to process periodic tax refunds. Tax refunds help reduce project costs, therefore, it is necessary to comply with regulations to maximize the utilization of aid funds.
1.7. Tax refunds for individuals entitled to diplomatic privileges and immunities.
According to Clause 7, Article 15 of Law 48/2024/QH15, agencies, organizations, and individuals enjoying diplomatic privileges and immunities who purchase goods and services in Vietnam for their own use are entitled to a refund of taxes paid based on invoices and supporting documents as prescribed.
These diplomatic subject entitled to privileges and immunities in Vietnam – for example diplomatic and consular missions, international organization, diplomatic officials, consular staff and their families… – When purchasing goods and services for use within Vietnam, VAT will not be applicable. The implementation mechanism is as follows: Purchases include tax., then proceed with the procedures. tax refund Return the VAT already paid, based on the invoice or payment document.
This case is handled according to the principle. Reciprocity in diplomacy between countries, in accordance with international practice and international treaties to which Vietnam is a party. The list of subjects and scope of diplomatic privileges and immunities in Vietnam are specified in detail in the Ordinance on Privileges and Immunities for Diplomatic and Consular Missions and International Organizations.
Decree 181/2025/ND-CP (Article 35) reaffirms the content of the Law in a concise manner: Diplomatic personnel purchasing goods in Vietnam for their own use are entitled to a refund of the VAT amount stated on the valid invoice or document. In practice, the Ministry of Finance usually coordinates with the Ministry of Foreign Affairs to guide the procedures for diplomatic personnel to submit tax refund applications periodically (usually quarterly) and receive the tax refund through the Treasury. Businesses selling goods to these individuals also need to issue invoices according to the prescribed form so that buyers have a basis to request a tax refund.
1.8. Tax refunds based on decisions of competent authorities and international treaties.
This is the case general, applicable when the tax refund originates from individual decision of the competent state authority or word commitments in international treaties of which Vietnam is a member, according to Clause 8, Article 15 of Law 48/2024/QH15.
This regulation covers special situations, such as:
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The competent authority (e.g., The Prime Minister, the Ministry of Finance, the Courts, the Arbitration Tribunal…) making a decision to request a tax refund for a specific case due to deemed appropriate policy or based on conclusions, rulings resolving tax disputes or complaints. For example: a decision to refund a tax to a business in the case of special investment incentives, or a tax refund due to policy errors that have been amended by a competent authority.
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VAT refund as committed in the following cases: international agreement (bilateral or multilateral) agreements in which Vietnam participates. This can occur when Vietnam commits to special tax incentives for certain projects, international organizations, peacekeeping forces, special diplomatic missions, etc., in accordance with the treaty. In such cases, tax refunds will be implemented in accordance with international commitments.
Decree 181/2025/ND-CP (Article 36) also reiterates these two cases exactly, without adding anything further: enterprises falling under the category There is a tax refund decision from the competent authority. or fall under International treaties stipulate that taxes must be refunded. Then they will be entitled to a VAT refund in accordance with that decision/agreement.
In fact, the case of tax refund according to personal decision It's uncommon, usually only arising in cases of complaints or exceptions. As for tax refunds... international treaty This usually applies to certain international organizations, special delegations, etc., that have been agreed upon. Businesses rarely encounter this situation, unless they participate in specific programs or projects involving international treaties.
2. Cases where VAT refund is not granted (Understanding correctly to avoid mistakes from the start)
In practice, the following 5 cases are "not eligible for refund" and fall into 02 groups:
- No eligible for refund;
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Although eligible for a refund, the conditions for deduction were not met, resulting in the recipient not being eligible for a refund..
2.1. Exports that fall under the exclusion category.
Imported goods are then exported to other countries.: Excluded from the export tax refund mechanism.
2.2. Investment projects that do not meet core compliance requirements.
The law clearly sets out the core conditions for compliance:
- The registered capital has not been fully contributed. by registration; or
- Conditional business sectors but have not fully met the corresponding conditions; or
- Submitting applications after the legally mandated deadline. Calculated from the point in time when the project/project phase begins generating revenue (as detailed in the investment project tax refund clause).
2.3. Failure to meet the conditions for input tax deduction.
The conditions for deductions are the "foundation" of tax refunds:
- Must have valid value-added tax invoice or proof of tax payment at the import stage; non-cash payment documents (except in special cases); for exports, additional documents such as contracts, invoices, payment documents, customs declarations, and some shipping and insurance documents (if any) are required.
- If Does not meet the deduction conditionsor invoices/documents generated from these prohibited behavior (Buying and selling invoices, fictitious transactions, using invoices illegally, failure to transfer electronic invoice data, etc.) Not deductible input tax.
2.4. Goods and services that are exempt from tax (and not subject to exceptions)
In principle, a business establishment providing goods and services not subject to tax then Non-deductible and non-refundable. input tax, except for goods and services subject to a 0% tax rate.
2.5. Failure to meet the risk management requirements for export tax refunds.
For export tax refunds, the law requires additional operational conditions such as a payment account with a tax identification number, the "correctness and cleanliness" of the invoice supply chain, and the seller's declaration and payment of taxes as required. If these conditions are missing, the application risks rejection or a request for further explanation.
3. Common mistakes that lead to application rejection or delays.
- Mistake regarding the scope of export tax refund.: There is an export transaction, but the goods are of the following type: import then export They should be eliminated.
- Failed to meet threshold or not on schedule: The amount of uncredited input tax has not reached the target. 300 million VND Monthly/quarterly (for exports) or according to the terms of the respective refund group.
- Non-separated accountingThis involves both export and domestic sales, but without separate accounting records and without a consistent method for allocating revenue/input tax.
- Lack of non-cash payment documentation or the documents do not demonstrate continuity, reciprocity, or correct payment from the payer.
- Invoice riskTransactions deemed fraudulent; use of illegal invoices/documents; or failure to fulfill the obligation to transfer electronic invoice data.
- The investment project is facing compliance issues.: insufficient registered capital; conditional business activities not met; or exceeding the deadline for submitting documents as stipulated by law.
4. Conclusion
Businesses should pay particular attention to the following points:
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General conditions for tax refund: Businesses must Pay taxes using the deduction method., yes accounting books, invoices and legal documents, yes bank account by tax identification number , and Tax returns have been filed in full.The seller who sells to the business requesting a tax refund must also... Declare and pay taxes in full. for invoices that have already been issued. If these conditions are not met, even if eligible for a tax refund, the business will not receive the refund (or the refund will be suspended until the issue is rectified).
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Tax refund application and procedures: Businesses must establish tax refund application Each case is handled separately (export, investment, dissolution, etc.) and submitted to the tax authorities. The tax authorities will... file classification Whether the refund is processed under the "refund first, check first, refund later" method depends on the regulations of the Tax Administration Law. Therefore, businesses should prepare transparent and accurate documents to shorten the time it takes to receive a tax refund.
Businesses should Regular self-assessment Monitoring the VAT situation (overpaid tax, uncredited tax, etc.) is crucial for timely processing of tax refund applications when conditions are met, avoiding capital stagnation. This is especially important in export and investment activities – two areas prone to generating large tax refunds – where dedicated tax accounting personnel are needed to closely track these matters.
When problems arise, you should Consult with Expertis experts. To ensure that tax refunds are processed smoothly and in accordance with regulations.
Legal grounds
- Decree No. 181 / 2025 / ND-CPThis regulation details the tax refund process and eligibility criteria, and replaces previous guiding decrees.
- Law on Value Added Tax No. 48/2024/QH15: Regulations specifying the principles of deduction, conditions for deduction, cases of tax refund, and conditions for tax refund.
- Circular No. 69 / 2025 / TT-BTC: Detailed guidance on some aspects of export tax refunds, and methods for determining the amount of tax to be refunded (within the scope of this guidance).
