Vietnam Introduces VAT Refunds For Tourists
by Mary Swire, Tax-News.com, Hong Kong
06 July 2012
The Vietnamese government has introduced a pilot scheme to refund the value added tax (VAT) on goods purchased by overseas tourists departing through Noi Bai International Airport and Tan Son Nhat International Airport, which serve Hanoi and Ho Chi Minh City, respectively.
Tourists will be eligible to claim VAT back on purchases that have a tax refund declaration attached to an invoice issued not more than 30 days previously, and where the invoice or invoices, issued by the same retailer on the same day, are for an amount of at least VND2m (USD95).
Goods for which a VAT refund will be available must not be among those prohibited for export, or listed for export under official trade permits.
The amount of each refund will amount to the VAT paid on the purchase, minus a service charge to cover the costs of the refunding. That charge will be decided by the Ministry of Finance, but shall not exceed more than 15% of the total amount of VAT paid.
Counters for the inspection of the goods and invoices have been placed in the check-in areas of both airports, whereas VAT refund counters are located in the departure lounge after immigration clearance. Refunds will be given in the tourist’s chosen currency at then-current exchange rates.
The pilot scheme, which started on July 1 this year, will be run until the end of June 2014.
The availability of VAT refunds forms one of the policies contained in Vietnam’s plan to develop tourism in the country from now until 2020. It is expected that the possibility of obtaining refunds will promote Vietnam’s products, encouraging tourists to visit the country, and to spend more during their visit.
Wow, just about as complicated as that of the US income tax law.