Government and Local Authority Are Preparing to Carry Out a Pilot Value-Added Tax (VAT) Refund

By Nguyễn Hữu Thức

 

Circular 58/2012/TT-BTC guiding the Decision 05/2012/QD-TTg to implement a pilot project allowing VAT refunds for foreigners departing Vietnam from Noi Bai and Tan Son Nhat international airports has been recently issued on 12 April 2012, and wef 01 June 2012. Along with the Vietnam Chamber of Commerce and Industry (VCCI), the relevant authorities and business recently organized a meeting several weeks ago in order to prepare a pilot VAT refund scheme for foreigners and overseas Vietnamese passing through the country’s two biggest airports from July onwards.

A pilot project allowing VAT refunds for foreigners departing Vietnam from Noi Bai and Tan Son Nhat international airports (Source: Hữu Thức)

Foreigners claiming VAT refund will be charged a fee not exceeding 15% of the refunded amount, and the 15% of the refund value will be used as service fee to pay banks that handle tax payments. The refund only applies to goods purchased from companies which register with and are approved by the Ministry of Finance to sell goods entitled to VAT refund.

In conclusion, Vietnamese people also believe such decision would bring benefits to the nation, such as cultural exchange among nations and helping attract foreign tourists to our country. In addition, the refund would give domestic merchandises an opportunity to raise their sales revenue and advertise their products to foreign markets by way of sitting in our chair located in Vietnam.

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