Do Hoang Anh Tuan, deputy minister of Finance believes in raising Vietnam’s image by offering refund on Value Added Tax (VAT) on commodities purchased in Vietnam by foreign travellers at point of departure at Noi Bai and Tan Son Nhat International Airports from July 2012 till June 2013.
The deputy minister mentioned this at a conference in Ho Chi Minh City recently to implement the new pilot scheme that will offer a VAT refund to foreigners leaving the country with purchases made during their stay. Tuan said the pilot scheme will help promote tourism and leave a good impression on foreign visitors, so officials at airports must provide and facilitate easy procedures for the same.
The pilot scheme will be improved gradually in accordance with international practices, but for now VAT refund formalities must be made simple, clear and transparent, Tuan said. Foreigners will now receive a Value Added Tax (VAT) refund on commodities purchased while in Vietnam and which they carry back when leaving the country. According to the General Department of Taxation, 154 enterprises in Hanoi and HCMC are eligible for participating in the new scheme.
Purchases made by foreign visitors during their stay in Vietnam, will receive VAT refund at point of departure, provided all criteria is met. These enterprises are eager to join the pilot scheme as this is an excellent opportunity for them to promote their products in other countries of the world. Relevant agencies such as tax and customs departments will release the addresses and names of participating enterprises on their websites.
They will also be allowed to advertise the scheme on billboards and posters on their shops, so as to inform foreign clientele. Tax and customs departments should also inform travel agents of the enterprises listed in the VAT refund scheme, so as to curb corruption. Enterprises also raised the idea that there should be one common logo for the VAT refund scheme for easy recognition by foreign tourists. This idea met with approval from the deputy minister. The General Department of Taxation has been asked to think of a common logo to be used by shops offering VAT refund in the country.
