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VAT refunds proposed for foreign tourists

According to a draft decision compiled by the Ministry of Finance, foreigners making purchases at Vietnam’s airports, tourist resorts and dozens of places in big cities would get a 10% value-added tax (VAT) refund.

This move is part of a plan to stimulate consumption of Vietnamese brands and boost exports.

Goods purchased by foreigners would be considered exports and, therefore, every purchase valued at more than VND 2 million (USD 96) per receipt issued within 30 days of departure from Vietnam would be eligible for VAT refund. VAT refund would be given to all foreigners, no matter how long they stay in Vietnam.

However, foreign tourists would not receive a full tax refund because they would have to pay a service fee for tax bodies which would not exceed 10% of the refunded tax.

The draft decision would be applied on a pilot basis from April 1, 2012, till June 30, 2014, in Noi Bai and Tan Son Nhat airports.-

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