Few foreigners aware of new VAT-refund policy
The new refund policy for value-added taxes paid by visitors to the country on products they have purchased has been in place for three days at HCM City’s Tan Son Nhat International Airport.
However, few foreigners are aware of the new policy, which is now in a pilot phase in HCM City and at Ha Noi’s Noi Bai airport, where desks have been set up for VAT refunds only.
Genelle Eisele, of Canada, a teacher at the Canadian International School, who was at the HCM City airport yesterday, said she had been in Viet Nam for almost a year but had no idea about the VAT refund scheme.
“I think this is a good scheme, but the Government should make the procedures easy and convenient for foreigners,” she said.
Sheena, of Singapore, who works at the US-based Loud Technology Company, told a Viet Nam News reporter that he travels between Viet Nam and Singapore every month for business, but was unaware of the policy.
“The VAT refund scheme is such a good policy, which can help Viet Nam promote tourism. So I think the scheme should be further promoted so most foreigners can know about it,” he said.
The VAT refund scheme for foreigners and overseas Vietnamese began on July 1.
Under the scheme, purchases that total at least VND2 million ($95) are eligible for VAT refunds.
To qualify for a VAT refund, a declaration form must be filled out within 30 days from the date of departure.
Foreigners can claim up to 85 per cent of the VAT charged on goods purchased in the country.
The tax refund will be paid at the airport in Vietnamese dong or a foreign currency in line with bank exchange rates.
According to Hoang Viet Cuong, deputy head of the General Department of Customs, VAT refunds would encourage foreign visitors to increase spending in Viet Nam, and boost tourism.
After the pilot phase, the scheme would be extended to more airports and border gates across the country, he said.
(VietNamNet/Viet Nam News)