Businesses with operations or branches in Vietnam frequently pay VAT on goods and services needed to run their activities. Fortunately, much of this cost can be reclaimed if specific conditions are met. 

This article provides a clear overview of the Vietnam VAT refund process and how companies can file successful claims.

Key Highlights

  • Understand which foreign businesses with branches or representative offices are eligible to claim a Vietnam VAT refund on local expenses.
  • Learn when to file refund applications and how to prepare the required documentation for tax authorities.
  • Identify which costs qualify for reimbursement and which expenses are excluded under Vietnamese VAT rules.
  • Get a clear, step-by-step process for submitting refund claims, whether your accounting is handled in Vietnam or overseas.

Understanding VAT in Vietnam

Value Added Tax (VAT) is an indirect tax applied to most goods and services consumed within Vietnam. While the standard rate is 10%, specific supplies may fall under different categories:

  • 0% VAT: typically applied to exported goods and services meeting eligibility conditions
  • 5% VAT: applied to essential goods and services such as clean water, education, healthcare, and certain agricultural products
  • 10% VAT: the default rate for most commercial supplies

How does VAT refund work in Vietnam?

VAT operates on an input–output credit system. Businesses charge VAT on sales (output VAT) and deduct the VAT they pay on purchases (input VAT). When input VAT exceeds output VAT in a tax period, the excess can be carried forward or claimed as a VAT tax refund.

Foreign and domestic companies registered for VAT file declarations and refund applications directly with the Tax Authority, under the Ministry of Finance. The specific office handling the filing depends on where the company’s head office or primary business location is registered.

  • Large Businesses (Central Level): These are typically managed by the Provincial/City Tax Department (e.g., Hanoi Tax Department or Ho Chi Minh City Tax Department).
  • Small/Medium Businesses (District Level): These are usually managed by the District/Area Tax Sub-Department corresponding to their registered address.

A properly filed claim, supported by compliant invoices and payments, ensures faster processing and increases the likelihood of a successful Vietnam VAT refund.

Who Can Claim a VAT Refund?

A Vietnam tax refund on VAT is available only to entities that are properly registered and using the credit method for VAT. Eligibility generally applies to the following groups:

  1. Exporters of goods or services: Businesses exporting goods or services can request a refund when uncredited input VAT reaches VND 300 million for a month or quarter. However, the refundable VAT linked to export sales cannot exceed 10% of export revenue, and refunds are not granted if goods were imported only for re-export without undergoing the exporting process within customs-controlled zones.
  2. Businesses with new investment projects: Companies in the investment phase may claim a refund when their uncredited input VAT reaches VND 300 million or more. This is common in capital-intensive projects where large upfront purchases generate excess input VAT.
  3. ODA and humanitarian projects: Entities involved in Official Development Assistance (ODA) projects, or organizations receiving non-refundable humanitarian aid, can receive VAT refunds for eligible goods and services purchased in Vietnam to support these projects.
  4. Businesses undergoing corporate restructuring: Companies that merge, split, dissolve, transform ownership, or terminate operations may claim refunds if they have overpaid VAT or still hold uncredited input VAT.

These rules ensure VAT refunds apply only where economic activity genuinely occurs within Vietnam and proper compliance is maintained.

When Can Vietnam Businesses Claim a VAT Refund?

Vietnamese businesses can request a VAT refund once they meet specific timing and threshold conditions set by tax authorities. Refund claims are generally tied to the VAT filing period (monthly or quarterly), and applications can only be made after the VAT return for that period has been submitted.

  • Exporters may claim a refund on a monthly or quarterly basis if their total creditable input VAT reaches VND 300 million.
  • Businesses supplying goods or services subject to the 5% VAT rate may apply for a refund when unused input VAT reaches VND 300 million or more, calculated over 12 consecutive months or four consecutive quarters. This rule supports sectors where input purchases often outweigh VAT collected from sales.

A VAT refund in Vietnam is only processed once all declarations, invoices, and payment records are verified. Accurate filing ensures smoother processing and increases the likelihood of a successful Vietnam VAT refund.

What Can You Claim?

Businesses applying for a Vietnam VAT refund can claim input VAT paid on goods and services that directly support their commercial activities in the country. Common refundable costs include:

  • Office rent and utilities
  • Computers, office equipment, and furniture
  • Professional services purchased from local suppliers
  • Domestic travel and accommodation
  • Exhibitions, trade fairs, and business events
  • Certain imports are used for business operations
  • Construction services, machinery, and materials for new investment projects

Foreign or overseas claimants operating through a branch, representative office, or project can also reclaim VAT on:

  • Local supplier invoices
  • Conference or event participation fees
  • Marketing and advertising expenses incurred within Vietnam

Each claim must be supported by valid VAT invoices, contracts, payment evidence, and, for exporters, relevant customs documentation. Accurate recordkeeping ensures smoother review and faster processing.

What Expenses Are NOT Eligible for a VAT Refund in Vietnam?/What’s Not Covered?

Businesses cannot claim a Vietnam VAT refund for goods or services subject to the 0% VAT rate, as these are considered already exempted from domestic VAT obligations. Key examples include:

  • Exported goods: Items delivered and received outside Vietnam, sold to duty-free shops, non-tariff zones, or under export contracts; spare parts used abroad; intermediary-processed goods or on-spot exports under law.
  • Exported services: Services provided directly to foreign organizations or individuals and consumed outside Vietnam, including certain insurance services or services partially delivered in Vietnam when allocation is unclear.
  • International transportation: Passenger, luggage, and cargo transport on international routes, including contracts covering domestic legs tied to international carriage.
  • Aviation and maritime services: International airport or seaport services such as cargo handling, towing, piloting, in-flight meals, ground operations, and passenger services on international flights, provided contracts and payment conditions are met.
  • Other goods and services: Construction or installation of works overseas or in non-tariff zones, and repair services for aircraft or seagoing ships provided to foreign entities.

These expenses are excluded because they already benefit from preferential tax treatment under Vietnamese law, meaning input VAT cannot be reclaimed.

Are Non-Vietnam Businesses Eligible for a VAT Refund?

Foreign companies can claim a Vietnam VAT refund if they have an officially registered presence in Vietnam, such as a branch, subsidiary, or permanent establishment. Simply exporting goods or providing services remotely does not qualify.

Eligibility depends on proving that expenses incurred in Vietnam relate directly to taxable business activities. Required documentation generally includes:

  • Certificate of incorporation or business status from the home country
  • Proof of VAT registration and submitted Vietnamese VAT returns
  • Original Vietnamese VAT invoices
  • Contracts, purchase orders, or other evidence linking expenses to business activity in Vietnam

For non-Vietnamese businesses looking to get a VAT tax refund, demonstrating a registered legal presence, proper invoicing, and a clear business purpose for each expense is essential to avoid rejection.

Managing VAT compliance in Vietnam can be challenging for non-resident businesses. Commenda simplifies this process with expert guidance on global tax compliance, helping foreign companies handle registrations, filings, and VAT refunds efficiently.

Step-by-Step: Reclaiming VAT for Vietnam Businesses

Reclaiming VAT in Vietnam involves a structured process to ensure compliance and successful refund approval. Following the steps below helps registered businesses, both domestic and foreign, handle the system efficiently.

  1. Ensure VAT registration is valid: Confirm that your business is registered for VAT with the tax authorities and operating under the credit method. This is a prerequisite for any Vietnam VAT refund claim.
  2. Verify deductible expenses: Identify all eligible input VAT, including expenses on raw materials, services, machinery, office supplies, or investment project costs. Prepare a detailed list of invoices and supporting documents according to Form No. 01-1/HT.
  3. Complete VAT return or refund form: Fill out the form and ensure all information is accurate. For exports, also prepare lists of customs declarations (Form No. 01-2/HT) and bank payment records for exported goods.
  4. Attach digital invoices and supporting proofs: Upload all invoices, contracts, and documentary evidence online, ensuring they reconcile with your VAT declarations.
  5. Submit within the deadline: The new law requires filing VAT refund applications within one year of completing the investment phase or project.
  6. Track refund status and respond to authority queries: Once submitted via the national tax portal, monitor the progress and provide any additional documentation if requested.

Following these steps ensures a smoother process for businesses looking to learn how to claim a VAT refund online in Vietnam.

Reclaiming VAT for Overseas Businesses

For foreign businesses operating in Vietnam without a local registration or fixed establishment, there is no official mechanism to claim a Vietnam VAT refund. The country’s VAT refund system primarily applies to Vietnamese-registered entities, including subsidiaries or branches of foreign investors. In such cases, the claimant must be a Vietnamese legal entity, even if the underlying expenses were incurred on behalf of an overseas parent company.

The only direct VAT refund available to non-Vietnamese individuals or entities is the tourist scheme, which allows refunds on goods carried upon exit. However, this is strictly for personal consumption and does not apply to B2B transactions.

Foreign businesses looking for guidance on how to get a VAT tax refund in Vietnam should note that they must establish a local legal presence to access the official refund mechanisms. Without registration, refunds are not available for business-related expenses incurred in Vietnam.

Documentation and Compliance Checklist

To successfully secure a Vietnam VAT refund, businesses must maintain and submit thorough documentation that supports the claim. Essential paperwork includes:

  • VAT invoices for all purchases and sales, clearly showing the VAT amount.
  • Investment project documentation, including approvals and status confirmations.
  • Export-related proof, such as customs declarations, shipping documents, packing lists, bills of lading, and any relevant insurance documents.
  • Customer and vendor contracts, showing company bank account details and agreements for goods or services purchased.
  • Financial statements detailing VAT amounts to be refunded.
  • Proof of payments for both purchased goods/services and payments received from overseas customers.
  • Official letters or approvals related to mergers, acquisitions, or organizational changes, where applicable.
  • Customs reconciliation lists linking customs declarations to invoices issued by the company.

Careful preparation and organization of these documents not only ensures compliance with Vietnamese tax authorities but also streamlines the refund process, reducing delays and minimizing the risk of rejected claims.

How to Stay VAT-Compliant With Your Paperwork

Maintaining proper documentation is key to ensuring the smooth processing of a Vietnam VAT refund and avoiding issues during audits. Best practices include:

  • Keep digital copies of all invoices, contracts, and supporting documents to safeguard against loss or damage.
  • Retain records for the statutory period, typically 5–10 years, to comply with Vietnamese tax regulations.
  • Ensure invoices meet format requirements, including correct tax codes, company details, VAT amounts, and signatures where applicable.
  • Follow e-invoicing mandates, as Vietnam increasingly requires electronic invoices for all VAT-registered businesses.
  • Maintain a clear audit trail, linking invoices, payments, and contracts to support each VAT claim.
  • Regularly reconcile financial records with VAT declarations to detect errors early and prevent rejected claims.
  • Organize export and investment documentation in a consistent, accessible manner for authorities during refund verification.

Adhering to these practices improves compliance, accelerates refunds, and minimizes the risk of disputes with tax authorities.

How Commenda Handles Global VAT Refund Filings

Managing cross‑border VAT compliance is critical when pursuing a Vietnam VAT refund. Commenda brings deep expertise in global indirect tax, offering a full‑service solution that covers end‑to‑end compliance for VAT/GST, indirect tax, and refund filings. 

Key elements of Commenda’s approach include:

  • Automated tracking of tax exposure and deadlines across multiple countries, ensuring filings are timely and accurate.
  • Centralized document management for invoices, contracts, and proof‑of‑payment, enabling audit‑ready submissions and smooth refund claims.
  • Local regulatory expertise that ensures the correct refund application forms and submission processes are used, from investment‑project claims to export‑activity refunds.
  • Seamless integration with your existing accounting, ERP, and payment systems, allowing for accurate reconciliations and streamlined filings.

With Commenda guiding your global VAT strategy, your business can confidently manage refund opportunities, meet compliance standards, and optimize tax‑reclaim efforts in Vietnam and beyond. Book a free demo today!

FAQs

Q. Who is eligible to claim a VAT refund in Vietnam?

VAT-registered businesses in Vietnam, including domestic companies and Vietnamese-registered subsidiaries of foreign investors, can claim input VAT refunds. Non-registered foreign businesses cannot claim, except under the tourist scheme.

Q. What expenses can be reclaimed under a Vietnam VAT refund?

Eligible expenses include office rent, utilities, equipment, travel, exhibitions, imports, and, for investment projects, machinery and construction services. Supporting invoices and proof of payment are required.

Q. Can foreign businesses without a local entity apply for a VAT refund?

No. Only businesses with a registered legal presence in Vietnam can access the official VAT refund mechanisms. The tourist scheme is the only exception, strictly for personal purchases.

Q. How long do I have to submit a VAT refund claim?

Refund applications for investment projects or export activities must be submitted according to the deadlines set by Vietnamese tax authorities, typically within one year of the end of the relevant project or export period.

Q. What documentation is required to claim a VAT refund?

Required documents include detailed VAT invoices, proof of payments, contracts, export documents, investment approvals, customs declarations, and any official approvals for structural changes or mergers. Proper organization ensures faster processing and minimizes the risk of rejection.