From July 1, foreigners who purchase goods in
This is provided in a pilot VAT refund project under the Prime Minister’s Decision No. 05/2012/QD-TTg of January 19.
Accordingly, a foreigner who holds a passport not issued by a Vietnamese authority and is not a crew member of an airplane flight to an overseas destination would be eligible for VAT refund for goods he/she has purchased in Vietnam which satisfy four conditions: (i) they are liable to taxes including VAT, not yet used and meet flight safety requirements; (ii) they are not on the list of goods banned or restricted from export; (iii) they are accompanied with sale invoices and VAT refund declarations made within 30 days, and (iv) their sale invoices and VAT refund declarations are made by only one store on the date of purchaser exit and their total value does not exceed VND 2 million.
The VAT refund value is equal to that stated in invoices and VAT refund declarations confirmed by customs.
Commercial banks selected to act as VAT refund agents will make advanced payments to foreigners in
This project will be piloted only for foreigners exiting the country from Noi Bai and Tan Son Nhat international airports. Therefore, domestic enterprises and stores selling goods and products eligible for VAT refunds under this project must be established and operate under domestic regulations or in some craft villages named as destinations of travel routes, have offices or branches in Hanoi or Ho Chi Minh City, complete all required formalities, and pay VAT by the credit method.
The VAT refund policy was directed by the Government since July 2011 and proposed by the Ministry of Finance for comment since September 2011 with positive responses that it would attract more foreign tourists coming to Vietnam for travel, promote Vietnamese products and goods to the world market and increase the inflow of foreign currencies into the country.-