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According to Circular 84, which took effect on July 1 and supersedes MOF’s Circular 72 of 2014 and Circular 92 of 2019, the VAT refund management system for foreign visitors, developed and managed by the Customs Department, will directly connect and exchange data with the tax authority’s electronic invoice system to verify VAT invoices-cum-tax refund declarations.
Data transmitted and processed through the system may be recognised as legally valid data messages, provided they meet requirements on data integrity, accessibility and verifiable origin and timestamps.
To participate in the retail network eligible for VAT refund, businesses must meet stringent criteria regarding accounting standards, use electronic invoices, pay tax by the deduction method, and make commitments to connecting data directly with the Customs Department’s system.
In the meantime, commercial banks selected to act as refund agents must possess valid foreign exchange licences issued by the State Bank of Vietnam. These banks have to arrange personnel, set up service counters and advance tax refund amounts to passengers.
Under the new Circular, foreign passengers and overseas Vietnamese are explicitly required to verify details of invoices issued by retail outlets, and submit their tax refund invoice-cum-declaration forms and present their goods for customs inspection at least 30 minutes prior to the scheduled departure of their flights or ships.
To enhance the overall passenger experience, the new Circular sets clear specifications for infrastructure layouts. Areas for physical inspection of goods and invoices must be situated within the baggage check-in areas or boarding pass checking gates.
Meanwhile, bank refund counters of agent banks will be located in secure, isolated areas within the airside international departure or designated port refund areas.
- (VLLF)
