On May 30, 2014, the Ministry of Finance issued the Circular No. 72/2014/TT-BTC on the VAT refund for goods of foreigners, overseas Vietnamese’s goods (hereinafter referred to as foreigners) brought with when exit.
Accordingly, VAT-free goods must be goods that are not on the List of goods banned from export; List of import goods licensed by the Ministry of Commerce (which is now the Ministry of Trade and Industry) or List of import goods subject to line management; goods subject to VAT; goods that can be carried on airplanes; goods other than VAT-free goods of the foreigners; goods that are bought in Vietnam for which the VAT invoices are issued within 60 (sixty) days prior to the date the foreigner leaves Vietnam; goods bought from a single shop in one day whose value written on the VAT invoices (including the total payment of several invoices of goods bought from a single shop in one day) is at least VND 02 (two) million.
Any commercial bank can receive a VAT refund fee that accounts for 15% (fifteen per cent) of the total amount of the VAT of the VAT-free goods that the foreigners take with them when they leave Vietnam through the tax refund border checkpoints. Any foreigner is entitled to a refund that accounts for 85% (fifteen per cent) of the total amount of the VAT of the VAT-free goods that the foreigners take with them when they leave Vietnam through the tax refund border checkpoints.
VAT refund currency is VND. If the foreigners want to exchange the tax refunds in VND for freely convertible foreign currency, they can buy foreign currency at the commercial banks under the regulations.
The foreigners shall receive their VAT refunds after their VAT invoices are completely checked at the VAT refund counters in the commercial banks and before the time they board the ships or airplanes to leave Vietnam.
This Circular takes effect from June 01, 2014.
