Tax

VAT Refund Service for Foreign-Owned Enterprises

What is Value Added Tax (VAT) Refund?

Value Added Tax (VAT) Refund is the process where the state tax authority reimburses the amount of input VAT that a company, organization, or individual has paid to the State Budget, provided they meet specific legal requirements.

However, this process is often complex, demanding high accuracy in preparing documentation and providing explanations to the tax authorities. Any errors can lead to a VAT refund rejection, a reduction in the eligible refund amount, or significant delays in the review process.

Key Cases Eligible for VAT Refund

The main cases eligible for VAT Refund from July 1, 2025, when the new VAT Law 2024 officially takes effect, include the following:

• Refund for Exported Goods and Services: Businesses with exported goods or services in a month or quarter are eligible for a VAT refund if the input VAT that has not been fully credited is VND 300 million or more.
• Refund for Investment Projects: Businesses currently in the investment phase (without generated revenue) are eligible for a VAT refund if the input VAT on goods and services used for investment that has not been fully credited is VND 300 million or more.
• Refund for Businesses Supplying Goods/Services subject to 5% VAT Rate: Businesses that exclusively produce or supply goods/services subject to the 5% VAT rate are eligible for a VAT refund if the uncredited input VAT is VND 300 million or more for 12 consecutive months or 4 consecutive quarters.
• Refund upon Dissolution, Bankruptcy, or Cessation of Operation.

VAT Refund Procedure

The VAT Refund procedure is executed based on the Law on Tax Administration and Circular 80/2021/TT-BTC (or subsequent amendments/replacements). The general process involves the following steps:

• Step 1: Preparing the Refund Application Dossier

The taxpayer (TIN) must identify the relevant refund case (export, investment project, overpayment, etc.) and prepare a complete dossier as required.

Basic Documents:

• Request for Refund of State Budget Collection (Form 01/HT).
• VAT Declaration for the refund period.
• Schedule of Invoices and Vouchers for purchased goods/services (Form 01-1/HT).
• Other related documents, depending on the specific case.

• Step 2: Submitting the Refund Application Dossier

The taxpayer submits the dossier to the direct managing Tax Authority or the Provincial Tax Department (depending on the case) via one of the following methods:

• Direct submission.
• Submission via post.
• Submission via the General Department of Taxation’s E-portal (electronic refund).

• Step 3: Tax Authority Receives and Classifies the Dossier The Tax Authority will receive, check the completeness of the dossier, and classify it into two categories:
  • Refund First, Inspect Later: Applied to taxpayers with good tax compliance, not deemed high-risk.
  • Inspect First, Refund Later: Applied to high-risk taxpayers or those with signs of tax law violations.
• Step 4: Processing and Issuing the Refund Decision

The Tax Authority processes the dossier based on its classification:

Dossier Type	Tax Authority’s Processing Activity	Processing Time (from the date of receiving a complete and valid dossier)
Refund First, Inspect Later	Review dossier information, data cross-check.	Maximum 06 working days.
Inspect First, Refund Later	Conduct inspection at the taxpayer’s premises.	Maximum 40 working days.

• Processing Outcome:
  • If the dossier is eligible: The Tax Authority issues a Refund Decision (or a Refund cum Offsetting Decision).
  • If the dossier is ineligible: The Tax Authority issues a Notification of Ineligibility for Refund with clear reasons.
• Step 5: Disbursing the Refund Amount
  • The Tax Authority sends the Refund Order to the State Treasury.
  • The State Treasury disburses the refund amount to the taxpayer’s account (or authorized bank) as specified in the Refund Decision. The payment is usually made within 03 working days from the date the State Treasury receives the Refund Order.

Introducing Vina Bookkeeping’s VAT Refund Service

VAT Refund Service for Foreign-Owned Enterprises in HCMC is a specialized tax service provided by Vina Bookkeeping Co., Ltd. (VBK). We assist Foreign-Owned Enterprises (FOEs) in claiming their VAT refunds in compliance with Vietnamese tax law.

Our clientele consists of 100% Foreign-Owned Enterprises from over 22 countries, including multinational corporations and listed companies in the US and Japan. We are committed to a mission of Quality First and a spirit of dedicated service (Omotenashi), striving to exceed customer expectations.

By utilizing VBK’s VAT Refund Service for Foreign-Owned Enterprises in HCMC, companies do not need to maintain an in-house accountant. VBK handles the entire process: preparing the refund dossier, reviewing and preparing documents for tax inspections, representing the company to clarify data and the refund dossier with the tax authorities, until the enterprise receives the refund money.

Our services include:

• Assessing the company’s eligibility for a VAT refund.
• Reviewing VAT invoices, payment vouchers, and related documentation.
• Determining the refund period and the eligible VAT amount as stipulated by regulations.
• Preparing the refund dossier and submitting it to the tax authorities.
• Representing the enterprise to work and provide explanations to the tax authorities.
• Explaining tax risks and advising on remedial actions.

Our service is delivered by a highly experienced team specializing in Japanese and FDI companies, holding all necessary licenses granted by the Ministry of Finance and the General Department of Taxation. We commit to Quality First and dedicated customer service (Omotenashi).

Benefits of Using Vina Bookkeeping’s VAT Refund Service

VBK’s VAT Refund Service offers tangible benefits, especially for Foreign-Owned Enterprises (FDIs) in Vietnam:

• Accelerated Refund Speed and Optimized Cash Flow
  • Faster Refunds: VBK ensures accurate dossier processing from the start, minimizing delays and guaranteeing the enterprise receives the refund money sooner.
  • Improved Liquidity: Helps the enterprise quickly recover prepaid capital for reinvestment in production and business activities.
• Minimized Risk and Ensured Compliance
  • Absolute Accuracy: Our expert team (specializing in FDIs) reviews and finalizes the dossier, ensuring all vouchers are valid and strictly comply with current tax laws.
  • Reduced Rejection Risk: By eliminating errors, we increase the probability of receiving a refund under the “Refund First, Inspect Later” category.
• Representation for Tax Clarifications
  • Tax Authority Representation: VBK acts on behalf of the enterprise in direct dealings with the tax authorities and inspection teams, handling all complex clarification requests.
  • Free Up Internal Resources: The enterprise saves time, effort, and internal resources on administrative procedures, allowing it to focus entirely on its core business.

CONTACT VINA BOOKKEEPING TODAY

Don’t let tax risks hinder your growth. Be proactive in protecting your business and ensuring absolute compliance.

Contact Vina Bookkeeping today to schedule an Initial Consultation and discover how our professional VAT Refund Service can bring peace of mind and a financial advantage to your business in Vietnam.

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