Official Letter No. 2909/CTH-QLDN1 of the Can Tho City Tax Department (September 29, 2025) is an important guiding document on the conditions for refunding input VAT according to the amended Law on VAT and Decree 181/2025/ND-CP. The highlight is the emphasis on the regulation in Clause 9, Point c, Article 15: Enterprises requesting tax refunds must ensure that the seller has declared and paid VAT on time related to the invoice. This regulation changes responsibilities, forcing accountants and auditors to increase inspection of partners and review the entire tax refund process to avoid the risk of having their documents rejected.
This new regulation, effective from the tax period of July 2025 or the third quarter of 2025 (according to Clause 3, Article 39 of Decree 181/2025/ND-CP), directly affects the cash flow and tax compliance of all enterprises with large input VAT amounts. Failure to clearly understand and correctly apply Official Dispatch No. 2909/CTH-QLDN1 will lead to the risk of being rejected or delayed in refunding by the tax authority, causing serious capital stagnation. Read the in-depth analysis below to clearly understand the mechanism for preserving deduction rights and detailed instructions on applying this important Official Dispatch.
Legal basis related to Official Dispatch 2909/CTH-QLDN1
In the context of major changes in tax laws, Official Letter No. 2909/CTH-QLDN1 of the Can Tho City Tax Department was issued to specify the application of new regulations. The core legal basis for Official Letter No. 2909/CTH-QLDN1 is summarized in detail in the following table:
| Legal documents | Core Terms | Instructions in Official Dispatch 2909 |
| Law on Value Added Tax (VAT) modify | Article 15 (Clause 1, Clause 9, Clause 10) | Guidance on tax refund cases, dossier conditions, and especially the responsibility to check the seller's tax obligations (Clause 9, point c). |
| Decree 181/2025/ND-CP | Article 37, Clause 3 and Article 39, Clause 3 | Detailed regulations on the implementation of the Law, clearly defining the time and timeline for applying new tax refund conditions. |
Mastering these documents is a prerequisite for businesses to clearly understand the importance and implementation of Official Dispatch No. 2909/CTH-QLDN1.
Main content of Official Dispatch No. 2909/CTH-QLDN1
Official dispatch No. 2909/CTH-QLDN1 focuses on clarifying three main contents, creating a major change in the management process. VAT refund input:
Basic conditions for tax refund
Enterprises are only eligible for tax refunds if they fully meet two criteria:
- Belonging to the case of tax refund (for example: accumulated after 12 months or investment project) according to Clause 1, Article 15 of the Law on VAT.
- Satisfy the conditions on records and documents in Clause 9, Clause 10, Article 15 of the Law on VAT, including the requirement that the seller has fulfilled tax obligations.
Responsibility to ensure that the seller has paid the tax
This is the most important point that Official Dispatch No. 2909/CTH-QLDN1 wants to emphasize. According to Clause 9, Point c, Article 15 of the Law on VAT:
- If the seller has not fully submitted the VAT declaration for the corresponding tax period.
- If the seller still owes VAT for the corresponding tax period.
Then the enterprise (buyer) will not be refunded tax for related VAT invoices. Official Letter No. 2909/CTH-QLDN1 confirms that this regulation transfers part of the responsibility for verifying tax compliance to the enterprise requesting the tax refund.
Alternative tax refund deduction mechanism
Official dispatch No. 2909/CTH-QLDN1 also clarifies the mechanism to protect the interests of enterprises: if the VAT amount is not refunded due to the seller's fault, but still meets the deduction conditions in Article 14 of the Law on VAT, the enterprise can still transfer that tax amount to deduct in the next period.
Important notes according to Official Dispatch No. 2909/CTH-QLDN1
To minimize the risk of tax refund rejection or delay, Official Letter No. 2909/CTH-QLDN1 suggests the following practical notes:
Cash flow risks and financial consequences
The refusal of tax refunds due to the partner's fault will seriously affect the business's cash flow. Although the tax is deductible, the time to recover the backlogged tax capital will be prolonged, putting pressure on the financial plan. Businesses need to manage this risk in the spirit of Official Letter No. 2909/CTH-QLDN1.
Extreme caution is required in checking partners.
Official Letter No. 2909/CTH-QLDN1 requires businesses to supplement the process of checking the financial health and tax compliance status of partners (Due Diligence). Specifically, before making a large transaction or before submitting a tax refund application, businesses should request their partners to confirm in writing that they have completed their obligations to declare and pay VAT on related invoices.
Apply the correct tax period
The complexity in determining the time of application is a key note of Official Letter No. 2909/CTH-QLDN1. Tax refund dossiers must be classified and applied with old or new regulations depending on the tax period of the invoice.
Time of application of Official Dispatch No. 2909/CTH-QLDN1
The important part that Official Dispatch No. 2909/CTH-QLDN1 emphasizes is the effective time of the new regulation on tax refund conditions:
Decision timeline (Clause 3, Article 39 of Decree 181/2025/ND-CP)
The new rules on seller tax liability only apply to:
- Tax calculation period from July 2025 (for businesses declaring monthly).
- Tax calculation period from the third quarter of 2025 (for businesses declaring quarterly).
Official Letter No. 2909/CTH-QLDN1 helps businesses make a clear distinction: tax refund dossiers for tax periods before the above timeframe (for example, tax periods of Quarter 1/2025 or Quarter 2/2025) will continue to be considered according to the old regulations.
Practical application for cumulative tax refund dossiers
For cumulative tax refund dossiers or investment projects with invoices arising over many periods, enterprises need to separate invoices arising before and after July 2025 to apply the conditions of Official Dispatch No. 2909/CTH-QLDN1 correctly, avoiding mistaken application leading to rejection of the entire tax refund.
Right to deduct VAT according to Official Dispatch No. 2909/CTH-QLDN1
In case of ineligibility for tax refund due to reasons from the seller, Official Letter No. 2909/CTH-QLDN1 ensures the deduction rights of the enterprise.
Alternative deduction mechanism
If the input VAT amount is not immediately refunded, but the enterprise still meets the conditions for input VAT deduction according to Clause 1 and Clause 2, Article 14 of the Law on VAT (legal invoices and non-cash payment documents for transactions of VND 20 million or more), then that tax amount will still be preserved.
Official Letter No. 2909/CTH-QLDN1 confirms that this tax amount will be transferred to the next declaration period for further deduction, helping to reduce future tax liabilities.
Comparison of two mechanisms according to official dispatch no. 2909/CTH-QLDN1
The choice of financial strategy must be based on careful consideration, drawn from the analysis of Official Dispatch No. 2909/CTH-QLDN1.
| Criteria | VAT Refund (According to the new Law & Official Dispatch No. 2909/CTH-QLDN1) | Deduction of Input VAT (Article 14 of the Law on VAT) |
| Target | Cash flow recovery. | Reduce tax liability. |
| Required Conditions (New) | The seller must fulfill the tax payment obligation. | Legal invoice, cashless payment. |
| Cash Flow Risk | High (vulnerable to rejection/delay due to partner error). | Low (slow recovery only). |
| Optimal Solution | Immediately switch to deduction if there is a risk of tax refund rejection according to Official Dispatch No. 2909/CTH-QLDN1. | Ensure that invoices are eligible for deduction according to Article 14; fully track the VAT Declaration to transfer the unrefunded tax amount to the next period, avoiding the risk of the application being rejected according to Official Dispatch No. 2909/CTH-QLDN1. |
Instructions for applying Official Dispatch No. 2909/CTH-QLDN1 for businesses
To proactively adapt to the new regulations in Official Dispatch No. 2909/CTH-QLDN1, businesses need to establish a strict process for managing partner risks and tax refund records.
Build a partner vetting process
In the context of increasingly strict VAT refund regulations, businesses need to proactively check their partners before transactions to avoid tax refund rejection. This content is also mentioned in Official Letter No. 2909/CTH-QLDN1, when the tax authority warns of risks if the seller is late or does not pay VAT for the corresponding period. Therefore, building a due diligence process for partners helps businesses ensure valid documents, limit tax risks and protect the right to tax refund according to the law.
- Check operating status: Make sure the partner is not high risk or has a locked tax code.
- Request for written confirmation: For large transactions, there is a written request for the seller to confirm the completion of the obligation to declare and pay VAT for the corresponding tax period, as implied in Official Letter No. 2909/CTH-QLDN1.
Tax refund file management
Tax refund dossier management plays a key role in the VAT refund request process, especially when the seller verification requirement is tightened according to Official Letter No. 2909/CTH-QLDN1. Enterprises need to strictly control each input invoice according to the tax calculation period and ensure that the documents fully meet the compliance conditions. If there are invoices that are not eligible for refund, timely adjustments must be made on the declaration to avoid errors and limit the risk of post-refund audit.
- Classify input invoices by tax period. From July 2025 onwards, each invoice in the tax refund dossier must be accompanied by the seller's compliance verification.
- Use the VAT Declaration Form (Form 01/GTGT) to transfer the non-refundable tax amount to the "VAT remaining to be deducted for the next period" section if it is rejected according to the conditions of Official Dispatch No. 2909/CTH-QLDN1.
Resolving when tax refund is refused
If the tax authority refuses to refund tax because the seller has not paid tax according to Official Dispatch No. 2909/CTH-QLDN1, the enterprise needs to:
- Remove the corresponding input tax amount from the tax refund file.
- Immediately transfer that tax to deduction to preserve rights.
- Work with sellers to request them to fulfill their tax obligations (if required).
Benefits of applying Official Dispatch No. 2909/CTH-QLDN1 in accordance with regulations
Compliance with the detailed instructions in Official Dispatch No. 2909/CTH-QLDN1 brings many practical benefits:
- Cash flow assurance: Proactively controlling vendor risk helps businesses avoid delays or tax refund rejections, thereby protecting operating cash flow.
- Strengthening tax compliance: Mastering Official Dispatch No. 2909/CTH-QLDN1 helps businesses apply the law consistently and effectively, minimizing the risk of administrative penalties due to errors in tax refund dossiers.
- Optimizing benefits: Timely convert tax amounts from refunds to deductions when necessary, following the instructions of Official Dispatch No. 2909/CTH-QLDN1, ensuring no financial benefits are missed.
- Counterparty risk management: New regulations create a cross-self-monitoring mechanism, forcing businesses to build business relationships with partners with high tax compliance.
Conclude
Official Letter No. 2909/CTH-QLDN1 of Can Tho City Tax has redefined the responsibilities of enterprises in the VAT refund cycle. Strict compliance with the conditions for sellers to fulfill their tax obligations, and determining the right time to apply the new regulations (from July 2025 or the third quarter of 2025), are vital factors to ensure cash flow and avoid legal risks. With detailed guidance in Official Letter No. 2909/CTH-QLDN1, enterprises can proactively manage risks and protect their deduction rights.
Enterprises should not consider Official Letter No. 2909/CTH-QLDN1 as just an administrative document, but as a strategic guideline in input tax management. This change requires professionalism and extensive practical experience in document appraisal, partner review, and flexible handling between the two tax refund and deduction mechanisms. Successfully applying the notes from Official Letter No. 2909/CTH-QLDN1 will be a great competitive advantage for enterprises.
To ensure your input VAT refund process goes smoothly, in full compliance with the latest regulations from the Law, Decree, and especially Official Dispatch No. 2909/CTH-QLDN1, please contact MAN – Master Accountant Network. We provide tax consulting services professional, auditing services – accounting, supporting businesses in building partner control processes and preparing accurate tax refund documents, helping your business maximize financial benefits and operate the business effectively.
Service contact information at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
