Vietnam is widening its special value-added tax (VAT) scheme for exports by temporary visitors to the country. This scheme will enable more temporary visitors to Vietnam to claim refunds in respect of value added tax paid on goods bought during their stay in Vietnam and taken with them out of the country when they return home.
A pilot project has been carried out over two years at Noi Bai International Airport (Hanoi) and Tan Son Nhat (the international airport in Ho Chi Minh City). Four of the country’s banks (Vietcombank, Maritime, Viettinbank, BIDV) administered refunds on sales by 69 retailers at 268 stores in the country.
Under the amendments now being pushed through, the refunds will be available to visitors leaving from airports Noi Bai and Tan Son Nhat. The receipts will need to be reimbursed within 60 days from the departure of the visitor from the country. The VAT refunds will relate to sales of more than VND2m in value bought from one store on any particular day. The service fee for the bank will be a maximum of 15 percent of the VAT refund.
