In his document, No 806/TTg-KTTK issued on May 30, the Prime Minister agreed to increase the number of border gates accepting VAT refunds from two to seven. They include the four international airports of Noi Bai in Hanoi, Tan Son Nhat in Ho Chi Minh City, Da Nang in Da Nang city and Cam Ranh in Khanh Hoa province. Three international harbours are also on the list, including Khanh Hoi in HCM City, Da Nang in Da Nang city and Nha Trang in Khanh Hoa province.
The new regulation is in accordance with the Government's decree No 209-2013/ND-CP regulating that foreigners and Vietnamese residing in foreign countries and possessing passports or visas which are issued by foreign competent agencies, shall be eligible for refunds of VAT tax for goods purchased in Vietnam and taken out upon departure.
In 2012, a pilot VAT refund scheme for foreigners and Overseas Vietnamese passing through the country's two largest airports of Noi Bai in Hanoi and Tan Son Nhat in HCM City started on July 1.
Four VAT stations and two checking stations in the two airports were set up as part of the scheme. So far, 69 enterprises have joined the pilot programme, along with 268 shops nationwide.
The scheme has received positive results as the number of foreigners enjoying VAT refunds, as well as the refunds, has reportedly increased.
According to statistics from Vietnam Customs, as of February this year, more than 8,600 people had received a VAT refund. The total value of goods has been reported up to VND425 billion (over US$20.2 million), equivalent to VND32.9 billion (US$1.6 million) of VAT refunds. Of those, more than 8,000 cases were refunded in HCM City, with the total value of goods up to VND390 billion (US$18.5 million), equivalent to VND30 billion (US$1.4 million) of VAT refunds.