In business activities, Value Added Tax (VAT) is one of the important taxes associated with most goods and service transactions. However, in many cases, enterprises can be refunded the VAT amount paid in accordance with the law. The VAT refund procedure is actually not simple: it requires businesses to prepare strict documents, prove full eligibility, and work with tax authorities according to a multi-step process. This is the reason why the VAT refund consulting service of HM&P Law Firm ("HM&P") was born, in order to support businesses to settle procedures quickly, accurately and ensure compliance with the law.
When can businesses get VAT refund?
According to the VAT Law and its guiding documents, enterprises are entitled to VAT refund in the following principal cases:
- Enterprises whose input VAT amounts have not been fully deducted after at least 12 months (or 4 consecutive quarters) from the arising tax period, shall be refunded the undeducted tax amounts.
- Tax refund for exported goods and services: Enterprises engaged in export activities, if the undeducted input VAT amount is VND 300 million or more in the period, they shall be refunded monthly or quarterly.
- Tax refund for new investment projects: Enterprises in the investment stage (not yet put into operation, not yet generating revenue) with an input VAT amount of VND 300 million or more, are entitled to tax refund according to each declaration period.
- Other specific cases:
- Foreign organizations and individuals implementing humanitarian aid and non-refundable aid programs in Vietnam.
- Projects funded by non-refundable ODA or ODA loans allocated by the State.
- Cases of tax refund shall comply with the provisions of treaties to which Vietnam is a signatory.
Common difficulties of businesses
Although the legal regulations are quite clear, in reality businesses still face many obstacles:
- Complex Records: Requires multiple accounting documents, invoices, contracts, and financial statements.
- Risk of rejection of documents: Just a small error, such as an invalid invoice or missing documents, can be returned by the tax authorities.
- Long process: The processing time for tax refunds is often long, affecting the cash flow and financial plan of the business.
- Request for explanation and inspection: The tax authority can conduct examination and comparison, causing businesses to lose a lot of resources to coordinate.
Why choose HM&P for this service?
When using the VAT refund consulting service at HM&P, businesses will receive:
- A team of experienced lawyers and experts: A combination of lawyers and experts, knowledgeable about the law and tax management practices.
- Efficiency and savings: Optimize time, costs, and internal resources for businesses.
- High success rate: Documents are carefully prepared, in accordance with regulations, minimizing the risk of return.
- Long-term commitment: More than just a one-time service, HM&P becomes a reliable legal-tax partner for the sustainable development of businesses.
HM&P understands that transparent, stable cash flow and compliance with tax laws are the foundation for sustainable business development. With a team of experienced lawyers and tax experts, we are committed to providing accurate, timely and legally safe VAT refund solutions, helping businesses both protect their legal rights and optimize financial resources. In the spirit of "Companion – Efficiency – Sustainability", HM&P is always ready to become a reliable partner in all legal and tax issues, together with businesses on the path of long-term growth.
For more information about our services, please contact:
HM&P Law Firm
- Address: 7th Floor, ITAXA Building, 126 Nguyen Thi Minh Khai, Xuan Hoa Ward, HCMC
- Phone: +84 28 73080839
- Email: counsel@hmplaw.vn
- Website: https://hmplaw.vn/
Please download the PDF version of VAT refund advisory services for businesses HERE
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