Vietnam’s VAT refund expands

Vietnam’s Ministry of Finance has drafted a circular allowing more international airports and seaports to open VAT rebate counters for international tourists.
Two airports in HCMC and Hanoi already have the privilege, but it will be extended to Danang and Cam Ranh international airports, according to a draft circular, which will replace Circular 58/2012/TT-BTC later this year.
Currently, international tourists can get VAT refunds at Noi Bai and Tan Son Nhat international airports.
More banks can now join the VAT refund programme instead of just Vietcombank, Maritimebank, VietinBank and BIDV.
The ministry has proposed the refund validity period for foreigners be extended to 60 days from the date they leave Vietnam, instead of 30 days.
According to Circular 58, requirement that companies participating in the scheme must have registered offices in Hanoi and HCMC will be eased to allow companies elsewhere to be included.
The General Department of Customs has reported positive results after a two –year pilot scheme. Officials said it had encouraged more shopping.
The programme started on 1 July 2012 and will last until 30 June this year.
There are four VAT refund counters at the two airports and 69 businesses have registered 268 sales points for the programme.
Foreign visitors receive a net refund of 85% of the VAT once a 15% service fee is deducted by the processing agencies.
As of the end of February, over 8,600 foreigners had obtained VAT refunds worth US$1.54 million for more than US$20 million worth of the goods that they bought in Vietnam, according to the General Department of Customs.

Sourced: ttrweekly