For exporters and companies still in their investment phase, accumulated input VAT can be a material amount of cash sitting with the state. The difficulty is rarely eligibility. It is documentation.
Background
Vietnamese VAT law allows refunds in defined situations, most commonly for exported goods and services and for investment projects that have not yet generated revenue. Conditions, minimum thresholds and required documents differ by category.
The tax authority classifies each refund claim as either inspect-before-refund or refund-before-inspection, based on risk indicators and the taxpayer compliance history. Companies with clean, internally consistent filings are generally processed faster.
The conditions that cause most difficulty in practice are the non-cash payment evidence required for input invoices above the prescribed threshold, and the completeness of the export file: contract, customs declaration and bank payment evidence.
Common challenges
- Missing non-cash payment evidence. Input invoices at or above the prescribed value require bank payment records. Their absence is the single most common reason for disallowance.
- Export documents that do not agree. Where contract, customs declaration, invoice and payment evidence show different figures, the claim stalls in explanation rounds.
- Supplier problems you did not cause. Invoices from suppliers flagged as high risk or no longer operating are excluded from the claim even where your purchase was entirely genuine.
- Incorrect input tax apportionment. Companies with both taxable and non-taxable activity must apportion input VAT. An error here distorts the entire claim.
- Filing before the claim is ready. Submitting below threshold or with an incomplete file leads to rejection, costs time and affects your risk profile for future claims.
How TrustlineAX helps
- A realistic figure before you file. We confirm which refund category applies, whether the threshold is met, and what you are likely to actually recover once at-risk items are stripped out.
- Input documentation cleared in advance. We test invoice validity, match non-cash payment evidence and check supplier status, so exclusions are identified before the tax authority finds them.
- A consistent export file. Contract, customs declaration, commercial invoice and payment evidence reconciled to each other before submission.
- Gaps closed while there is still time. Missing evidence obtained and filings adjusted where permitted, ahead of submission.
- The claim filed and followed. Complete refund file prepared, submitted and tracked through classification and processing.
- Representation during inspection. We attend, explain and provide supporting documents during pre-refund or post-refund inspection.
How we work
- Eligibility review. We assess the applicable category and estimate the recoverable amount.
- Document testing. Invoice-by-invoice review of input VAT and a full check of the export file.
- Remediation. Missing evidence collected and adjustments made before filing.
- Submission. The claim is filed and monitored through the tax authority classification process.
- Inspection and outcome. We represent you until the refund decision is issued.
Frequently asked questions
Which companies can claim a VAT refund?
The eligible cases are set out in VAT legislation. The most common are businesses with exported goods and services and investment-stage projects not yet generating revenue. Each category has its own conditions and thresholds that need to be checked against your circumstances.
How long does a refund take?
It depends on whether your claim is classified as inspect-before-refund or refund-before-inspection. A complete file from a taxpayer with a good compliance record moves considerably faster than one requiring repeated clarification.
Can part of the claim be rejected?
Yes, and it is common. The usual causes are invoices that fail the deductibility conditions, missing non-cash payment evidence, or invoices from suppliers subsequently flagged. Testing the file before submission substantially reduces this.
Will we be audited after receiving the refund?
For claims processed as refund-before-inspection, the tax authority will carry out an inspection within the statutory period. Complete records must be retained for that review.