Vietnam VAT refund: Update the current process
On April 14, 2023, changes to VAT refunds in Vietnam take effect. There are new regulations regulating what amounts can be refunded and what documents must be submitted. Ecovis experts summarize the most important points about VAT refunds.
Changes to VAT refund are stipulated in Circular No. 13/2023/TT-BTC (Circular 13) regulating the implementation of Decree No. 49/2022/ND-CP (Decree 49) and amending the Circular No. 80 /2021/TT-BTC.
Detailed points
1. Business establishments are entitled to VAT refund for investment projects
Clause 3 of Circular 13 completely replaces Clause 3, Article 18 of Circular 219/2013/TT-BTC to ensure consistency between regulations. Accordingly, business establishments are entitled to VAT refund for investment projects according to the provisions of Clause 3, Article 1 of Decree 49.
In short, Decree 49 eliminated the requirement for an investment period of more than one year to receive an annual VAT refund. It also allows a conditional business investment project to receive a VAT refund during the investment period if that investment project, according to the provisions of the investment and management law, is not required or has not required a license. /confirm/approve. of the competent authority to conduct conditional business.
2. VAT refund documents
Circular 13 also amends and supplements point a.4, clause 2, Article 28 of Circular 80 on VAT refund documents, including a copy of one of the licenses, certificates or documents confirming and approving the business line. conditional business for conditional investment projects. Business lines in the investment phase have been granted conditional business licenses by competent authorities according to the provisions of Clause 3, Article 1 of Decree 49.
Accordingly, from April 14, 2023, VAT refund documents for business establishments with conditional business lines will mainly include:
- Application form No. 01/HT
- Copy of Investment Registration Certificate (IRC)/Investment Certificate/Investment License in case IRC application is required
- Copy of Land Use Rights Certificate (LUR)/Land allocation decision, land lease contract from the competent authority; or Construction permit for projects with construction works
- Copy of license/certificate/document confirming or approving conditional business lines
- Copy of Charter Capital Contribution Certificate
- List of invoices and purchase documents according to form No. 01-1/HT, except for corresponding electronic invoices sent to tax authorities
- Decision to establish the Project Management Board/assign project management tasks to the project owner
- Regulations on organization and operation of branches and project management boards in case the branch or project management board requests tax refund