Pilot implementation on VAT refund for goods bought in Vietnam by foreigners
On 19/1/2012, The Prime Minister signed Decision no 05/2012/QD-TTg, stipulating pilot implementation on VAT refund for goods bought in Vietnam by foreigners when they exit through Noi Bai and Tan Son Nhat airports.
As stipulated in the Decision, foreigners whose passports are not issued by Vietnamese Authorities or foreigners who are not members of airline organizations have VAT refund when they exit through the above mentioned airports.
Goods are subject to VAT refund have to meet below requirements:
- Goods are subject to VAT, not second-hand and allowed to be brought in flight as legal security and safe regulation;
- They are not in the List of export prohibited goods or export limitation;
- They have Invoice ad VAT refund declaration form with expiry date within 30 days from exit day;
- Goods value on Invoices issued by 01 shop in 01 day is 2 million at min.
The Decision also stipulates conditions, choosing business locations, banks who join pilot implementation, inspection location, Invoice checking and locations for VAT refund. Location for refunding VAT is separated from airports; have counters ensuring security on currency and documents as legally regulated.
VAT amount refunded for foreigners = total VAT refund amount – VAT refund service fee in which total VAT refund amount to be paid is VAT amount quoted in Invoice of goods actually brought by foreigners when they exit, checked and certified by customs offices.
VAT refund fee which doesn’t exceed 15% of total VAT refund amount is collected by selected bank as VAT refund agent.
When paying for VAT refund, the selected banks use their money to refund VAT for foreigners in advance. VAT refund currency is in Vietnamese cash. In case foreigners request to receive in foreign currency, the exchange rate is transaction exchange rate at current time.
Time for pilot implementation on VAT refund as in The Decision is from 01/7/2012 to 30/6/2014