VAT refund Vietnam: Update on the current process

On 14 April 2023, a change in VAT refund in Vietnam came into effect. There are new rules regulating which refunds are possible and which documents must be submitted. The Ecovis experts summarise the most important points on VAT refunds.

The changes to the VAT refund are set out in Circular No. 13/2023/TT-BTC (Circular 13), which regulates the implementation of Decree No. 49/2022/ND-CP (Decree 49) and amends Circular No. 80/2021/TT-BTC.

The points in detail

1. Business establishments eligible for VAT refund for investment projects

Clause 3, Circular 13 totally replaces Clause 3, Article 18, Circular 219/2013/TT-BTC to ensure consistency among regulations. Accordingly, business establishments shall be entitled to VAT refund for investment projects according to the provisions of Clause 3, Article 1 of Decree 49.

In short, Decree 49 removed the requirement for the investment period to last more than a year to receive an annual VAT refund. It also allowed an investment project with conditional business to receive a VAT refund during the investment period if such investment project, as regulated by the investment and governance law, is not required, or has not yet been required to obtain a license/confirmation/approval from the competent authorities to carry out the conditional business.

2. Application for VAT refund

Circular 13 also modifies and supplements Point a.4, Clause 2, Article 28 of Circular 80 on VAT refund dossiers, including a copy of one of the licenses, certificates, or written confirmation or approval of these conditional business lines for investment projects with conditional business lines in the investment stage that have been granted licenses to engage in conditional business lines by the competent authority under the provisions of Clause 3, Article 1 of Decree 49.

Accordingly, from 14 April 2023, VAT refund dossiers for business establishments with conditional business lines will primarily include the following:

• The application form No. 01/HT
• A copy of the Investment Registration Certificate (IRC)/Investment Certificate/ Investment License in the case of mandatory IRC application
• A copy of the Land Use Right (LUR) Certificate/decision on land allocation/land leasing contract issued by a competent authority; or the Construction Permission Certificate for projects with construction works
• A copy of the license/certificate/written confirmation or approval for the conditional business lines
• A copy of the Certificate of Charter capital contribution
• A list of purchase invoices and documents according to Form No. 01-1/HT, unless the relevant electronic invoices are sent to the tax authority
• The decision on the establishment of the project management board/assignment of project management tasks by the project owner
• The organisation and operation regulations of the branch or project management board if the tax refund is applied for by the branch or project management board

For further information please contact:

Nghia Tran, Partner of Tax, Accounting and Consulting, ECOVIS AFA VIETNAM, Da Nang City, Vietnam
Email: nghia.tran@ecovis.com.vn