VAT Refund Eligibility Criteria 2025 in Vietnam

On July 1, 2025, the Law on Value-added Tax 2024 (Law No. 48/2024/QH15) officially took effect, marking an important adjustment in Vietnam’s tax policy. In particular, the regulations on VAT refunds were amended in a more specific and transparent manner, aiming to support enterprises while also strengthening management and preventing fraud. Thus, what are the VAT refund eligibility criteria 2025 in Vietnam? The following article by Viet An Law will provide customers with specific criteria for enterprises to receive VAT refunds from July 1, 2025.

Some new highlights about VAT from July 1, 2025

The National Assembly officially passed the Law on Value-added Tax (VAT) 2024 at the 8th session of the 15th National Assembly. This law takes effect from July 1, 2025, replacing the Law on VAT No. 13/2008/QH12, which has been amended many times.

The Law on VAT 2024 has outstanding new points that indirectly or directly affect tax refunds:

• Reduce VAT rate from 10% to 8% for goods and services currently subject to a 10% tax rate, applicable from July 1, 2025, to December 31, 2026;
• Adjust the group of subjects not subject to VAT, increase the revenue threshold of individuals/business households not subject to tax from 100 million to 200 million VND/year;
• Clarify cases of applying 0% and 5% tax rates; amend the method of calculating tax prices for imported goods;
• Regulations on non-cash payments (payment slips, electronic invoices, appropriate documents) for input tax deduction in certain cases; documents such as packing slips, bills of lading, and insurance documents (if any) are added as a basis for deduction if meeting the requirements;
• Abolish tax refunds for ownership conversion, business conversion, merger/consolidation, and separation (except in cases of dissolution or bankruptcy) if there is input VAT that has not been fully deducted or excess tax paid.
• Enterprises that import goods and then export those goods to another country are not eligible for VAT refunds on exports, even if the exports are made within the customs operating area.
• Supplement regulations on VAT refund for expansion investment projects during the investment phase if the input VAT amount of the investment project that has not been deducted is from 300 million VND or more.

Cases of value-added tax refund

Pursuant to Section 3, Chapter III of Decree 181/2025/ND-CP, cases eligible for VAT refund include:

• Export tax refund
• Investment tax refund
• Tax refund for goods and services subject to 5% VAT rate
• Tax refund for businesses when dissolved or bankrupt
• Tax refund for goods purchased in Vietnam carried upon exit
• Tax refund for programs and projects using non-refundable ODA capital or non-refundable aid, humanitarian aid
• Tax refund for goods and services purchased in Vietnam by subjects enjoying diplomatic privileges and immunities
• Tax refund according to international treaties

Applicable to business establishments if the input tax amount not yet fully deducted is from 300 million VND or more after 12 consecutive months or 4 consecutive quarters.

Cases where the value-added tax is not refunded

Below are cases where VAT is not refunded according to current regulations:

1. Transfer of ownership, merger, consolidation, separation

• When an enterprise changes ownership or reorganizes (converts, merges, consolidates, splits), the VAT amount that has not been deducted will not be refunded.
• In case of dissolution or bankruptcy, it is handled differently, according to the final settlement direction, to determine the final tax obligation.

2. Business activities of goods and services not subject to VAT

• Enterprises trading in goods and services that are not subject to VAT will not be refunded.
• Exception: In case of exported goods and services applying a 0% tax rate, they will still be refunded according to regulations.

3. Not fully submitting tax returns or still owing taxes

• Taxpayers who have not fully submitted VAT declarations for the tax period or still owe VAT will not be considered for a tax refund.
• Only after completing the tax declaration and payment obligations in full will the refund be processed.

4. Investment projects must defer tax

• For some investment projects in the development stage, the input VAT that has not been deducted when it is finished will not be completed immediately, but must be transferred to the next period for further deduction.
• This regulation applies to projects in the list that cannot be completed according to the law (for example: investment in resource and mineral exploitation; some specific fields).

Therefore, not all VAT not deducted is refundable. Enterprises need to carefully review their activities, projects, and tax declarations to determine whether they are refundable or must be carried forward to the next period.

VAT refund eligibility criteria 2025 in Vietnam

Before July 1, 2025, the conditions for a tax refund are:

• Require enterprises to pay taxes by the deduction method, and have full accounting books
• Have a bank account
• Valid input invoices and documents;
• Seller has declared and paid taxes
• No tax debt.

After July 1, 2025, the criteria will be similar to those above, but clarified. Specifically stipulated in Clause 9, Article 15 of the 2024 Law on VAT and Article 37 of Decree 181/2025/ND-CP detailing the implementation of several articles of the Law on VAT:

Subject criteria:

• Business establishments eligible for tax refunds must be business establishments that pay value-added tax according to the tax deduction method;
• Must establish and maintain accounting books and accounting documents according to the provisions of the law on accounting;
• Have a deposit account at a bank according to the tax code of the business establishment.
• Satisfy the regulations on input value-added tax deduction and are not subject to the cases specified in Clause 15, Article 23 of Decree 181/2025/ND-CP;
• Satisfy the regulations on input value-added tax deduction according to Clause 2, Article 14, and are not subject to the cases specified in Clause 3, Article 14 of the Law on VAT 2024 (for the case in Clause 9).

Criteria on invoices and documents

• The seller has declared and paid value-added tax as prescribed for invoices issued to the business establishment requesting a tax refund;
• At the time of submitting the tax refund dossier, the seller has submitted a value-added tax declaration dossier as prescribed and no longer owes value-added tax for the corresponding tax period;
• The tax authority determines that the seller has declared and paid value-added tax based on the processing results of the automatic information technology system;
• In case the seller has not submitted a complete tax declaration dossier or still owes value-added tax, the business establishment will not be entitled to a tax refund for the corresponding invoices.

Criteria on undeducted input tax

• Export: If the input VAT amount not yet deducted is from 300 million VND or more;
• Investment project: If the new/expansion investment project in the investment phase has input VAT not yet fully deducted from 300 million VND or more;
• Business establishments only operating with goods and services subject to the tax rate of 5%: After 12 consecutive months or 4 consecutive quarters, if the input VAT amount not yet deducted is from 300 million VND or more.

Criteria on dossiers and procedures

• At the time of submitting the tax refund dossier, the business establishment is eligible for a value-added tax refund, has an input tax amount that meets the conditions, and complies with the tax declaration regulations under the tax administration law.
• Prepare a value-added tax refund dossier for each tax refund case and send it to the competent tax authority to receive it.
• The tax authority classifies the tax refund dossier as eligible for pre-refund or pre-refund inspection and processes the dossier according to the provisions of the tax administration law.

Above are the VAT refund eligibility criteria for 2025 in Vietnam. The new regulations on VAT refunds facilitate enterprises with low tax rates, bring along with some conditions. If you still have questions related to VAT refunds, please contact Viet An Law for our enthusiastic answers.