Legal updates

1. A risk warning concerning a seller, an invoice or an entity in the supply chain does not mean that the transaction is not genuine, that the invoice is illegal, or that the enterprise does not satisfy the refund conditions.
2. Where only part of the amount in the refund claim dossier carries risk, that portion is subject to pre-refund inspection as prescribed; the remaining portion continues to be processed and refunded if all prescribed conditions are satisfied.
3. Where the seller or an entity in the supply chain shows risk indicators, this is information for the tax authority to assess risk and to verify where necessary; it is not a ground for concluding that the enterprise is not entitled to the refund or must repay VAT already refunded.
4. From 1 January 2026, the seller’s declaration and payment of VAT is no longer a refund condition for the purchaser (Clause 3, Article 1 of Law No. 149/2025/QH15); the enterprise must still satisfy all other prescribed conditions.
5. Enterprises should retain complete documentation evidencing the legality and genuineness of their transactions, and provide explanations and additional information and documents within 10 working days from the date the tax authority issues the Notice.
6. VAT already refunded is recovered only where there are grounds based on the results of inspection or verification, or on a conclusion of a competent authority; it is not recovered merely because the seller or another entity in the chain subsequently becomes subject to a risk warning, is dissolved or ceases operations.

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