Foreign tourists receive $1.48 mln in VAT refund

A total of 850 foreign tourists have been able to receive the value-added tax refund when leaving Vietnam, for a combined refund of VND3.1 billion, or US$1.48 million, the customs agency at Ho Chi Minh City’s Tan Son Nhat Airport has reported.

>> Who can claim VAT refunds in Vietnam?

The statistics were released four months after the VAT refund program was implemented, in fulfilling a decree issued by the Ministry of Finance that took effect on July 1.

The decree stipulates that foreigners who leave the country through the two major airports, Tan Son Nhat in Ho Chi Minh City and Noi Bai in Hanoi, are eligible to receive a 10 percent refund from goods they have purchased in the country.

Some VND3.1 billion has been reimbursed to tourists on a great variety of their purchased goods, from handicrafts and footwear to clothing and bags, the customs agency said.

According to the regulation, in order to qualify for the refund, foreigners must present receipts worth at least VND2 million (roughly $100) apiece.

The VAT is paid back in Vietnam dong. Thus, foreigners are responsible for exchanging dong for foreign currencies. Payments are processed immediately after travelers complete refund declarations and invoice inspections at the airport.

Under the pilot program that is running until June 30, 2014, foreigners are required, upon purchase, to show their passport or immigration paper and in return, the retailer will provide them with a VAT refund declaration form that they then will check and sign in.

When they arrive at the airport, they will be required to present the document to the customs office.

At the VAT refund counter, they will be required to submit the original copy of a boarding pass for an international flight and the original copies of invoices and the VAT refund declaration form with the Customs office “checked” seal to get the VAT returned.

According to the Ministry of Finance, foreigners and overseas Vietnamese are both eligible for VAT refunds on purchases in local accredited stores with the ‘VAT Refund for Tourist’ logo.

However, the refunded amount is still modest compared to the number of foreigners who actually left Vietnam via Tan Son Nhat Airport, a spokesperson of the customs agency said.

“It’s because many tourists are still not informed of the program, as well as the retailers qualified to join the refund scheme,” he explained.

There are only 100 retailers, mostly located in District 1, registered for the program to issue VAT refund declaration forms for their customers.

How to get VAT refund:

1. When purchasing the goods:

- Submit valid passports or immigration paper (original copy) to retailer to create VAT refund declaration form.
- Check all the information on VAT refund declaration form and sign in, take away original copy.

2. At airport, present the following document to the customs office:

- Passport and Immigration Paper (original copy)
- Invoices and VAT refund declaration form (original copy)
- Goods of VAT refund.

3. At VAT refund counter, submit to VAT refund staff:

- Boarding pass in international flight (original copy)
- Invoices and VAT refund declaration form with the Customs office “checked” seal (original copy)