Vietnam VAT refund administration and implementation

Vietnam is implementing measures to manage and accelerate Value Added Tax (VAT) refunds to support business capital.

In late September 2026, the Tax Department issued guidance to clarify risk protocols, stating that warnings regarding supplier status—such as inactivity or dissolution—are not “automatic grounds for denying Value Added Tax (VAT) refunds.” The department clarified that refund decisions must be based on the legality of invoices and transaction authenticity rather than risk alerts alone.

By October 2026, the Ministry of Finance reported significant progress in refund disbursements. As of September 30, 2026, the government had issued 14,668 refund decisions totaling 149,463 billion VND, reaching 86.4% of the annual target. This represents a 46% increase compared to the same period in 2025. The majority of these funds, approximately 125,000 billion VND, were directed toward export-related refunds.

Despite these disbursements, businesses continue to face financial strain due to inconsistencies between customs and tax authorities regarding VAT and import documentation. In the wood sector, companies like Lam Viet Joint Stock Company have reported that customs authorities require additional consular legalization of foreign documents, even when international certifications and positioning data are provided. This process can take months, resulting in port storage fees that occasionally exceed the value of the goods. While authorities are working toward automated systems and new legal frameworks to simplify documentation, bottlenecks in invoice verification and data reconciliation persist, impacting corporate cash flow.