Refunding VAT on imported and exported goods is one of the important fiscal policies, helping businesses optimize cash flow and improve competitiveness. Entering 2025, when VAT Law No. 48/2024/QH15 officially effective from July 1, 2025, many new regulations on conditions, deductions and tax refund documents have been issued. Typically, regulations on thresholds The amount of input VAT that can be refunded (from 300 million VND or more) and the limit of the amount of tax that can be refunded does not exceed 10% of export revenue per period..
In fact, many export enterprises have had their capital “locked” up from tens to hundreds of billions of VND due to tax refund dossiers not meeting regulations, prolonging the processing time from 3-6 months. This not only affects cash flow and raw material import plans, but also increases the risk of losing large contracts with international partners. Therefore, understanding the latest conditions and procedures for VAT refunds in 2025 is a key factor in helping enterprises comply with the law, preserve capital flow and maintain stable production and business activities.
See more articles at: VAT Overview
Overview of VAT refund for import and export goods
Refund of import and export VAT is one of the most important policies in the tax sector, directly affecting the cash flow, business strategy and international integration of enterprises. The mechanism of refund of import and export VAT is both technical and a tool to promote global competition, creating motivation for enterprises to comply with transparency and develop sustainably.
According to Law on VAT 2024 (48/2024/QH15) Effective from 01/07/2025, important provisions include:
What is VAT refund?
VAT refund is a legal mechanism by which the State refunds to enterprises the value added tax that has been paid but not fully deducted, or is eligible for refund according to regulations. This is one of the important policies to ensure fairness, avoid double taxation, and at the same time encourage enterprises to reinvest and expand production. This procedure is often applied when enterprises have input tax greater than output tax or when participating in specific activities such as export, new investment projects.
In the field of import and export, VAT refunds are even more significant. Because international trade activities often involve large cash flows, many transactions and high input tax rates. Timely tax refunds help businesses reduce working capital pressure, avoiding the situation of "locking" capital for a long time. At the same time, it also contributes to improving transparency and strengthening financial reputation with partners, banks and investors.
The role of VAT refund for imported and exported goods
Refunding VAT on imported and exported goods is not only a technical tax regulation, but also has great significance for both businesses and the economy. The process of refunding VAT on imported and exported goods also contributes to limiting tax fraud, encouraging exports, ensuring tax fairness, improving cash flow and promoting transparency in management.
| Aspect | Content | Meaning for business |
| Refund of input VAT through VAT Refund of Import and Export Goods | Enterprises are refunded input VAT through the VAT Refund mechanism for imported and exported goods. | Reduce costs, increase price competitiveness in the international market |
| Tax Justice | No double taxation (domestic & importing country) | Businesses maintain reasonable profits, complying with international practices |
| Cash flow & capital | On-time tax refund helps quick capital turnover | Reduce financial pressure, maintain continuous production and business |
| Transparent management | Require complete documents and records when refunding VAT on imported and exported goods | Promoting businesses to comply with more standard accounting and customs |
Legal basis related to VAT refund for imported and exported goods
VAT refunds for imported and exported goods are strictly regulated in the Vietnamese legal system, to ensure transparency, consistency and prevent tax fraud. Enterprises need to understand the basic legal documents below to comply with regulations and avoid risks in the process of preparing tax refund dossiers. Including:
- Law on VAT No. 13/2008/QH12 and amended and supplemented laws: This is the original document, laying the foundation for the VAT deduction and refund mechanism. The law stipulates general principles on taxable and non-taxable subjects, as well as cases of tax refund.
- VAT Law No. 48/2024/QH15 (effective from July 1, 2025): The latest law includes many important changes, such as stricter tax refund conditions for exporting enterprises, clear regulations on international payment documents, and increased tax refund control to limit fraud.
- Decree 209/2013/ND-CP and the amending decrees (Decree 12/2015/ND-CP, Decree 146/2017/ND-CP): These decrees provide detailed instructions on how to apply the Law on VAT, including the tax refund mechanism for imported and exported goods, investment projects and specific cases.
- Circular 219/2013/TT-BTC and the revised circulars of the Ministry of Finance: These are the most direct and detailed instructions on the dossier, order and procedures for VAT refund. The circular also stipulates the forms, declaration methods, and special cases when refunding tax for export enterprises.
- Tax Administration Law No. 38/2019/QH14 and guidance documents: Set out principles for tax refund management, regulations on processing time, post-refund inspection mechanism, and requirements for non-cash payment when applying for tax refund.
Conditions for VAT refund on imported and exported goods
To be eligible for VAT refunds on imported and exported goods, businesses not only need to have actual export activities but also need to meet many strict requirements on documents, payments and tax management. This is a mechanism to ensure that budget resources are managed transparently, while preventing fraudulent acts and abuse of tax refund policies. Regulations on tax refund conditions are clearly stipulated by law, helping businesses have a basis for proper implementation from the stage of purchasing, exporting to preparing tax refund dossiers.
Conditions of business operations
To be eligible for a VAT refund on imported and exported goods, businesses must first register to pay taxes using the deduction method and have a valid tax code. This is a mandatory condition because only businesses that declare using the deduction method will generate input VAT that has not been fully deducted – the basis for considering a refund. If this is not met, the tax refund application will not be accepted.
At the same time, the import and export activities of enterprises must take place within the scope of the business registered in the business registration certificate. In case the enterprise exports or imports items subject to specialized management (such as pharmaceuticals, chemicals, medical equipment, etc.), it must have an additional specialized import and export license issued by the competent authority. This is the way the State ensures legal business activities and prevents tax refund fraud.
In addition, businesses need to maintain a transparent accounting system, documents and financial books, honestly reflecting all purchasing, selling and import-export activities. Tax authorities will use this data to compare with tax refund records. If they detect unclear books, inconsistent financial reports, or signs of irregularities, tax authorities have the right to request additional information, explanations or refuse tax refunds. This requires businesses to not only comply with tax laws but also have transparent and professional financial management capacity.
Terms of documents and payment
In the process of VAT refund for import and export goods, documents and payment are the key factors that determine whether the application is accepted or not. Because this is the legal basis for the tax authority to verify that the export transaction is real, transparent and complies with international financial standards. If a business lacks or makes mistakes at this stage, it is very easy for the application to be returned, prolonging the tax refund period and potentially being subject to penalties. Including:
Export goods must have full foreign trade contracts and cleared customs declarations.
Payment documents must be made via bank or legal international payment method. According to VAT Law No. 48/2024/QH15 (effective July 1, 2025), all payments related to mandatory tax refunds must not be made in cash.
VAT invoice Input of related goods and services must be legal, valid and fully declared in tax records.
Tax conditions and management regulations
Enterprises are only entitled to a tax refund when the input VAT has not been fully deducted after at least 12 months or 4 consecutive quarters. In the case of export, the tax refund threshold is from VND 300 million or more, according to Article 18 of Circular 219/2013/TT-BTC and Decree 209/2013/ND-CP. For enterprises with high tax risks, the tax authority will apply the pre-inspection - post-refund mechanism according to the Tax Administration Law No. 38/2019/QH14, to limit fraud and ensure fairness.
Conditions of business operations
To be eligible for a VAT refund on imported and exported goods, businesses must first meet the conditions for tax registration and tax payment. Specifically, businesses must register to pay taxes using the deduction method and have a valid tax code, as this is a prerequisite for the tax authority to accept the application. If they do not meet the requirements, businesses will not be eligible for a tax refund.
In addition, import and export activities must be carried out within the scope of the business line that the enterprise has registered with the business registration authority. In cases where goods are subject to specialized management or require a separate license, the enterprise must have sufficient documents proving the legality of the activity. This is a way for the State to control and avoid the situation of taking advantage of tax refunds for non-transparent or non-industry transactions.
In addition, the accounting system, books and financial reports must be fully organized, clear and transparent. This is an important basis for tax authorities to check and compare data during the process of reviewing tax refund dossiers. If the books are inconsistent or show signs of irregularities, the enterprise's tax refund dossier may be delayed or rejected.
Terms of documents and payment
One of the important principles of VAT refund for imported and exported goods is the legality of the documents. Enterprises must have valid VAT invoices, cleared customs declarations and bank payment documents. In case of payment in foreign currency, the documents must match the foreign trade contract, ensuring that the value of the goods and related parties are clearly shown. This helps to limit the risk of fraud and is also the legal basis for tax authorities to verify the transaction.
Terms and legal documents
According to the provisions of the Law on Tax Administration and the Law on Value Added Tax No. 48/2024/QH15, enterprises are only entitled to request VAT refunds for imported and exported goods within 03 years from the date of occurrence of the input VAT that has not been fully deducted. After this period, the right to request a tax refund will expire, meaning that enterprises will lose the opportunity to recover the tax amount that should have been refunded. This is an important time milestone, aiming to encourage enterprises to proactively prepare their records early, avoiding the situation of prolonged backlog.
In addition to the time limit, legal documents are the key basis for tax authorities to consider tax refunds. A complete set of tax refund documents usually includes: the latest VAT declaration form, a list of invoices and tax payment documents, an export contract, customs clearance documents, and valid international payment documents. Each type of document must be legal, valid and consistent in information to demonstrate the transparency of the transaction.
If businesses prepare the correct documents and submit them within the prescribed time limit, the tax authority can significantly shorten the processing time. On the contrary, incomplete or late documents not only prolong the tax refund process but can also lead to the documents being returned or rejected. Therefore, scientific management of documents, complete storage and proactive deadlines are decisive factors for the process of VAT refund for imported and exported goods to take place smoothly and quickly.
Summary table of conditions for VAT refund on imported and exported goods
To help businesses easily visualize all legal requirements and procedures, the conditions for VAT refunds on imported and exported goods can be classified into three main groups. The table below briefly summarizes the important conditions, which are both a basis for businesses to compare when preparing documents and help limit the risk of being rejected by tax authorities or having to wait for a long time to process.
| Condition group | Main content | Implications for business |
| Business activities | Enterprises must register to pay tax according to the deduction method; have a valid tax code; conduct import and export activities in accordance with the registered business lines; have a license if the goods are subject to specialized management. | Determine whether the business is operating legally and has sufficient legal status to receive a tax refund, minimizing the risk of having the application rejected by the tax authority. |
| Documents & Payment | Foreign trade contract, customs declaration, valid input VAT invoice; payment must be made via bank or legal international method, cash is not allowed. | Ensure transparency, prevent fraud, and help businesses easily prove legitimate expenses for faster tax refunds. |
| Time limit & legal documents | Tax refund dossiers must be submitted within 3 years from the date of occurrence of un-deducted input VAT; dossiers include declarations, lists of invoices, contracts, and customs documents. | Helps businesses take the initiative in managing time, avoiding losing tax refund rights due to overdue; standard documents from the beginning help save processing time and limit repeated requests for additional information. |
Procedures and documents for VAT refund on imported and exported goods
To get a VAT refund on imported and exported goods, businesses need to follow the correct procedures as guided by the Law on Tax Administration and related documents. This procedure includes three main steps: preparing documents, submitting documents and monitoring processing from the tax authority.
Prepare VAT refund documents for import and export goods
Before submitting, businesses need to review all relevant documents, including: valid VAT invoices, cleared customs declarations, foreign trade contracts, and bank payment documents. In addition, the tax refund dossier must also be accompanied by a VAT declaration form, a list of invoices - documents of purchased and sold goods and services, and a tax refund request.
Preparing complete and accurate documents will help the process of VAT refund for imported and exported goods to be transparent, limiting the need for tax authorities to request additional information or prolong the processing time.
Submit VAT Refund Application for Import and Export Goods
Enterprises can choose to submit their dossiers directly to the tax authority or submit them online via the General Department of Taxation's Electronic Information Portal. The online method is becoming increasingly popular because it saves time and allows enterprises to transparently track the status of their dossiers.
In fact, many import-export enterprises have assessed that online filing helps to significantly shorten the VAT refund process for import-export goods, while reducing administrative costs.
Tax authority settlement process
After receiving the documents, the tax authority will check and compare them. If the documents are valid, the business can get a tax refund within 6-40 working days, depending on the case of "refund first - check later" or "check first - refund later".
In case the dossier is incomplete or errors are detected, the tax authority will send a written request to the enterprise to supplement it. Timely and complete response will determine the progress of VAT refund settlement for imported and exported goods.
Summary table of procedures and documents for VAT refund of imported and exported goods
To help businesses clearly visualize the entire process, below is a summary table of procedures and documents for VAT refunds on imported and exported goods. This table is presented in stages, from preparation to receiving the tax refund decision, along with a list of necessary documents and practical significance for businesses. This can be considered an important "checklist", helping businesses avoid shortcomings in the process of working with tax authorities.
| Stage | Job Description | Related documents/certificates | Implications for business |
| Prepare documents |
|
|
A complete profile from the beginning saves time and avoids being asked for additional information multiple times. |
| Submit application |
|
|
Online filing saves time, reduces administrative costs and is more transparent. |
| Tax authority resolution |
|
|
Businesses receive tax refunds quickly if their documents are complete; timely feedback helps avoid delays. |
Benefits and applications of VAT refund for import and export goods
Refunding VAT on imported goods is not only a purely administrative procedure, but also brings practical values in finance, management and strategy to enterprises. When applied correctly, enterprises not only improve their competitiveness but also enhance transparency in production and business activities. Correct implementation of VAT refund on imported goods also contributes to creating long-term advantages in international integration.
Direct financial benefits
Tax refunds mean that businesses have more working capital to reinvest and maintain business operations. In many cases, the amount of VAT refunds on imported and exported goods accounts for a significant proportion of total working capital, helping businesses reduce borrowing pressure and improve liquidity. This shows that VAT refunds on imported and exported goods act as a “soft capital” to support businesses in the context of fierce competition.
Enhance international competitiveness
In the context of integration, many Vietnamese enterprises are deeply involved in the global supply chain. The VAT refund policy for imported and exported goods reduces product costs, creating conditions for Vietnamese goods to be more competitive in demanding markets such as the EU, the US or Japan. This is a key factor to increase market share, especially in the post-pandemic economic recovery period.
Enhance transparency and governance
The VAT refund policy for imported and exported goods requires businesses to have clear documents, books and records. This invisibly helps businesses build a transparent management system, limit the risk of legal violations, and at the same time build credibility with partners and investors. Thanks to the VAT refund for imported and exported goods, many businesses have improved their internal management standards and have easier access to international credit sources.
Application in business management practice
VAT refunds for imported and exported goods are not only a “refund” but also a basis for businesses to build more effective financial management strategies. From cash flow forecasting, planning raw material purchases, to negotiating with partners, the tax refund policy becomes a useful tool to help businesses optimize long-term business operations.
Summary table of benefits and applications of VAT refund for import and export goods
To help businesses better visualize the practical values that import-export VAT refunds bring, the table below summarizes the outstanding benefits and how to apply them to management and operations. Through that, it can be seen that tax refunds are not only a financial procedure but also a strategic tool to support businesses in sustainable development.
| Content | Detailed description | Implications for business |
| Financial benefits | Enterprises receive back the VAT paid, supplement working capital, reduce borrowing pressure, and increase liquidity. | Have more "soft capital" for reinvestment and maintain stable operations. |
| Improve competitiveness | Reduce product costs, create export advantages in international markets (EU, US, Japan...). | Increase market share, improve position in global supply chain. |
| Transparency and governance | Require clear and transparent documents, records and books. | Reduce legal risks, enhance reputation with partners and investors. |
| Applications in management | Basis for cash flow forecasting, financial planning, contract negotiation, raw material management. | Helps optimize long-term production and business operations. |
Conclude
VAT refund for imported and exported goods is not only a technical regulation in tax policy, but also an important financial tool to help businesses reduce cost burden, optimize cash flow and improve international competitiveness. Compliance with regulations, preparation of complete documents and understanding of tax refund conditions will help businesses shorten processing time, limit legal risks and maximize the benefits that this policy brings.
In the context of a volatile global economy, VAT refunds on imported and exported goods are both a challenge in the declaration and accounting process and an opportunity for businesses to affirm their management capacity and transparency in financial operations. This is also the foundation for Vietnamese businesses to integrate more deeply into the international value chain, expand the market and increase long-term business efficiency.
If your business wants to ensure full compliance with the new regulations on VAT refunds for import and export goods, from preparing documents, accounting for vouchers to handling errors, MAN – Master Accountant Network always ready to accompany. With a team of experts knowledgeable in tax law, timely updates on new documents and application of modern management technology, MAN is committed to providing the most accurate, transparent and economical tax refund solutions for businesses.
Contact information:
MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Hotline: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
