Supporting FDI enterprises in VAT refunds

With the goal of accelerating value-added tax (VAT) refunds to support taxpayers that are foreign direct investment (FDI) enterprises in expanding production and business, the tax sector has recently rolled out multiple effective solutions to ensure taxpayers’ rights while avoiding losses to the state budget.

The seed production line of C.P. Vietnam Seed Co., Ltd. at Dinh Quan Industrial Park, La Nga Commune, under Thailand’s C.P. Group, one of the top corporate tax payers in the first half of 2025. Photo: Ngoc Lien

Among the total VAT refunded to taxpayers, FDI enterprises account for a significant share. Their refund claims have been prioritized by the tax authority for timely settlement, providing a boost for their investment and production activities across the province.

Applying modern technology in VAT refund management

Since the beginning of the year, Dong Nai tax sector in line with nationwide restructuring, has shifted from a function-based tax management model to a taxpayer-based approach. In handling VAT refund for FDI firms, tax authorities are applying the “refund first, audit later” mechanism, ensuring responsibility, improving service quality, and consistently resolving VAT refunds promptly, even ahead of schedule in many cases.

Currently, all stages of processing VAT refund dossiers are processed electronically through the centralized tax management system. By accessing the applications such as eTax, e-invoices, customs declaration databases, and the Taxpayer Risk Management (TPR) system for VAT refund classification, the tax authority also provides guidance on documentation and VAT refund procedures. This enables taxpayers to take the initiative in preparing refund applications, facilitates smooth submission, and helps avoid ineligible dossiers being sent to the authority. In particular, FDI enterprises engaged in the export of goods and services, as well as investment projects in the province, are being closely reviewed.

In response to information on customs duties affecting exports to the United States, tax authorities have quickly compiled and categorized refund applications by taxpayer groups and product types, especially key export items such as textiles, footwear, wooden products, steel, and electronic components. For taxpayers with a strong compliance history and eligible documents without risk signals, refunds are processed swiftly within the prescribed timeframe.

Nguyen Ngoc Cam, an accountant at H.K Company Limited in Bien Hoa 2 Industrial Park (Long Binh Ward, Dong Nai), shared that thanks to the tax authority’s online support, she has been able to keep up to date with tax regulations. In particular, the VAT refund process has been effectively facilitated, from preparing the application to electronic submission, while the final settlement has consistently met the required deadlines.

Cam added: “Recently, I hardly need to visit the tax office to ask about any issues, as the tax authority has created Zalo groups for FDI enterprises to provide online support and effectively address any issues. The expedited VAT refund process has helped businesses replenish capital and maintain stable production and operations.”

Focused measures conducted to support taxpayers

Thanks to timely and synchronized implementation of support measures, in the first half of 2025, the tax sector processed VAT refunds worth over VND 10 trillion. Of this, nearly VND 6.8 trillion was refunded to 950 FDI enterprises. Notably, 82% of refund applications qualified for “refund first, audit later” and were quickly resolved within just six working days upon receipt of complete dossiers. Applications requiring pre-refund audits were also expedited to relevant divisions for processing.

For 2025, the tax sector estimates to complete total VAT refunds of over VND 21.5 trillion, while continuing to build on previous achievements, overcome challenges, and ensure refunds are processed fully and on time.

To accelerate VAT refund procedures and support taxpayers in expanding production and business activities, Tran Quang Ninh, Head of Enterprise Support Management Division 1 under the Dong Nai Tax Department, said the unit will continue to roll out a groups of measures synchronously as directed by the provincial tax authority. He stressed that, in addition to actively studying and applying new tax policies, particularly those taking effect since July 1, 2025 regarding VAT refunds, the tax sector will conduct risk-based classification and prioritize handling refund applications for the right beneficiaries in line with regulations. At the same time, the department will intensify the use of information technology in processing VAT refund dossiers by fully leveraging invoice data via the TPR application, cross-checking information through electronic platforms for invoice verification, the eTax system for filing applications, customs declaration databases, and e-invoices.

In addition, the tax sector will maintain its close cooperation with customs, police, and banks in reconciling invoices and verifying the the origin of goods. Online data cross-checks between tax and customs authorities will be implemented to verify enterprises’ import-export activities during refund processing.

Many import and export goods of FDI enterprises are eligible for value-added tax (VAT) refunds. In photo: Import-export activities at Dong Nai Port. Photo: Ngoc Lien

Sharing the tax sector’s direction for the remaining months of 2025, Nguyen Van Vien, Deputy Director of Dong Nai Tax Department, stated: “The tax sector will continue to strengthen VAT refund management, strictly control refund processes to ensure that refunds are made to the correct beneficiaries in accordance with legal regulations. The sector will promptly detect and handle fraud or appropriation of refund funds. At the same time, the tax sector continues to apply risk management in classifying VAT refund dossiers and in developing plans for post-refund inspections and audits; ensuring the examination and selection of tax return dossiers with signs of risk from taxpayers for inspection in accordance with regulations.”

By: Ngoc Lien

Translated by: M.Nguyet - Thu Ha