Input VAT that remains uncredited across multiple periods is a familiar situation for exporting enterprises, enterprises investing in new projects, or enterprises with slow inventory turnover. Not every enterprise with a negative balance on its VAT return is entitled to a refund — the conditions, dossier and process each carry their own requirements, and an incorrectly prepared dossier can extend the waiting period by months. This article sets out the cases eligible for a VAT refund under current regulations.
Cases eligible for a VAT refund
VAT law prescribes several main groups of cases considered for a refund:
- Enterprises with a new investment project, including a project implemented in multiple phases, that is still in the investment stage, where the cumulative input VAT on goods and services purchased for the investment that remains uncredited reaches or exceeds the prescribed level.
- Enterprises with exported goods or services in the month or quarter, where the uncredited input VAT reaches or exceeds the prescribed level.
- Enterprises paying VAT under the credit method that have uncredited input VAT upon a change of ownership, conversion, merger, consolidation, division, split, dissolution, bankruptcy or cessation of operations.
- Certain refund cases for programmes or projects funded by non-refundable ODA grants, or for entities entitled to diplomatic immunity privileges under separate regulations.
From 1 July 2025, the Law on Value-Added Tax No. 48/2024/QH15 takes effect, replacing the previous VAT law with certain changes to the taxable revenue threshold and the conditions for credit and refund on exported goods. Enterprises should check the latest implementing guidance before preparing a refund dossier for periods arising from mid-2025 onward.
Conditions for a refund
In addition to falling within one of the cases above, an enterprise must simultaneously satisfy the following general conditions:
- Being a business establishment paying VAT under the credit method, with a valid business registration or investment licence.
- Holding lawful VAT invoices for purchased goods and services that satisfy the conditions for input VAT credit.
- Holding non-cash payment evidence for purchased goods and services of VND 5 million or more (including VAT, effective from 1 July 2025 under Article 26 of Decree 181/2025/ND-CP, replacing the previous VND 20 million threshold), except where the law permits an exception (Article 27 of Decree 181/2025/ND-CP).
- For exported goods specifically, an export contract, a customs declaration with completed procedures, and bank payment evidence for the exported goods or services are required — this is the group of conditions that has been tightened most in recent anti-fraud refund reviews.
An enterprise is not entitled to a refund if goods that are imported and subsequently exported are not actually exported through a Vietnamese border checkpoint as required under customs law, or if exported goods are not actually exported within a customs operating area as required.
Dossier and step-by-step process
The basic dossier for a VAT refund request comprises:
- A request for a refund of state budget revenue, on the prescribed form.
- The VAT return for the period for which the refund is requested, as filed with the tax authority.
- A schedule of invoices for purchased and sold goods and services relating to the tax amount requested for refund.
- For an investment project refund dossier: the decision establishing the project management board or appointing the investor, and the investment registration certificate, if any.
- For an export refund dossier: the export contract, the customs declaration, bank payment evidence, and the export sales invoice.
The processing steps are: the enterprise files the dossier through the tax authority's electronic portal or in person; the tax authority receives and classifies the dossier as either subject to inspection before refund or refund before inspection; the tax authority carries out an assessment, including an inspection at the enterprise's premises if the dossier is subject to pre-refund inspection; the refund decision is issued; and the refunded amount is transferred to the enterprise's account.
Enterprises should have the original supporting documents ready and reconcile the figures between the return and their books before filing, because in practice most of the delay comes from the tax authority requesting supplementary information or explanations for discrepancies identified after the dossier is received.
Processing time
Under the 2019 Law on Tax Administration, a dossier subject to refund before inspection is processed within 6 working days from the date the tax authority notifies acceptance of the dossier and the processing deadline; a dossier subject to inspection before refund has a processing time of 40 days. This period is counted from the date the tax authority issues written notice accepting the dossier, not from the date the enterprise files it.
In practice, the time to actually receive the refund is often longer than the statutory deadline if the dossier contains errors requiring supplementary explanation, or if the enterprise operates in a sector with a high risk of invoice fraud, such as agricultural produce, minerals or scrap, prompting the tax authority to widen the scope of verification, including cross-verification with the seller.
Why dossiers get rejected
- Invalid input invoices: the seller has absconded or ceased operations, or the invoice is determined to be fraudulent during cross-verification.
- Missing non-cash payment evidence for invoices at or above the prescribed level, or payment evidence whose name or account number does not match the contract.
- Exported goods that cannot be shown to have actually left through a border checkpoint, or a customs declaration that had not completed clearance procedures at the time the refund dossier was filed.
- The enterprise cannot explain the origin of the input goods where the supply chain shows unusual signs, multiple layers of intermediaries, or a sudden spike in transaction value.
- Technical errors in the dossier: figures on the return do not match the schedule, a missing signature, or use of the wrong form under current regulations.
Frequently asked questions
Can a newly established enterprise with no revenue yet obtain a refund of input VAT on an investment project? Yes, if it meets the conditions for a new investment project and the cumulative uncredited input tax reaches the prescribed level; this is a common case for enterprises still in the capital construction stage.
How is uncredited VAT below the prescribed minimum treated? The enterprise is not yet eligible for an immediate refund and instead carries the amount forward to the next tax period, accumulating it until the threshold is reached or as the enterprise chooses.
If a refund is rejected once, can the dossier be resubmitted? Yes. The enterprise remedies the cause of the rejection, supplements the supporting documents, clearly explains the origin of the goods, and then resubmits the dossier; the processing time is recalculated from the start based on the newly filed dossier.
Can a VAT refund be inspected after the refund has already been received? Yes, potentially. A dossier subject to refund before inspection remains within the scope of the tax authority's post-refund review; if a violation is discovered after the refund, the enterprise is required to repay the amount received plus late-payment interest, and may also be penalised.
Contact TLA Consulting to review your eligibility and prepare a correct VAT refund dossier from the very first submission.
