On Apr.12th.2012, The Ministry of Finance promulgated Circular 58/2012/TT-BTC guiding implementation of The Decision no 05/2012/QD-TTg by Minister, pilot implementation on VAT refund for goods bought in Vietnam by foreigners when they exit through Noi Bai and Tan Son Nhat airports.
Details of the Circular are as followings:
Principles of customs procedures, inspection and supervision, tax administration as follows:
Inspection of actual goods, customs supervision, tax administration for pilot value-added tax refund for foreigners shall comply with principles prescribed in Article 3 of Decree No. 154/2005/ND-CP dated December 15, 2005 by the Government, stipulating on customs procedures, inspection, customs supervision; Article 3 of Circular No. 194/2010/TT-BTC dated 12/06/2010 by the Ministry of Finance, guiding customs procedures; inspecting and supervising customs; import or export tax and tax administration for exports and imports; Article 4 of Tax Administration Law No. 78/2006/QH10 dated November 29, 2006 and the guiding documents.
The goods are subject to value-added tax refund:
Goods subject to value added tax refund are the ones meeting provisions of Article 3 of Decision No. 05/2012/QD-TTg, including:
Goods are not in the list of goods banned to export, the list of goods exported under permits of the Ministry of Trade (now named the Ministry of Industry and Trade) or the list of exported goods subject to specialized management stipulated in Decree No. 12/2006/ND-CP dated 23/01/2006 of the Government and guidelines of this Decree.
Goods subject to value added tax as prescribed in Article 3 of the Law on value added tax no.13/2008/QH12 dated 03/6/2008 and the guiding documents.
Goods are not in the list of items prohibited to be brought on aircraft as regulated in Article 12 of the Law on Vietnam Civil Aviation dated 29/6/2006 and the guidelines.
Goods purchased in Vietnam, with Bill cum tax refund declaration form issued within 30 (thirty) days till the exit day of foreigners.
Time for refund: VAT refund for foreigners on exit are done immediately after their completion of checking Bill cum tax refund declaration form and before going on flight at Noi Bai or Tan Son Nhat airports.
Customs offices, commercial banks shall assign customs officials to work all days including holidays, Sundays and non-work time to carry out VAT refund to foreigners in accordance with this Circular.
For checking Bill cum tax refund declaration form and actual goods:
Before checking security for sending goods and getting passing card for being on flight, foreigners submit the following documents to customs counter: Bill cum VAT refund declaration form, passport or relevant papers and goods.
The customs officials inspect actual goods at the counter where Bill and VAT refund declaration form is checked.
In addition, the Circular also specifies rights and obligations of foreigners, enterprises who sell goods in pilot period; commercial banks and responsibilities and powers of customs officials; the tax office and State Treasury
Responsibilities and powers of customs offices:
Firstly, to propagate, disseminate, guide, explain, provide information related to the pilot value-added tax refund for foreigners.
Secondly, to check passport, exit or entry papers, Bill-cum-tax refund declaration form, to inspect actual goods given by foreigners at the counter, to check bills cum refund declaration form.
Thirdly, to receive dossiers, submit proposal to the Ministry of Finance to select commercial banks acting as pilot agents in accordance with provisions in Decision No. 05/2012/QD-TTg and guidance in this Circular.
Fourthly, to update information on foreigners and the amount of value added tax which foreigners are actually refunded in the data base.
Fifthly, to coordinate with the State Treasury, Taxation to review and reconcile tax amount which commercial banks paid advance to foreigners, refund fees paid to commercial banks to ensure consistency of data between the parties.
Sixthly, to settle complaints and denunciations related to the implementation of value-added tax refund for foreigners within their assigned responsibilities.
Seventhly, to carry out sanction of violations of regulations on value added tax refund for foreigners under the provisions of law.
Eighthly, to perform responsibilities and powers as prescribed by the Tax Administration Law and other relevant laws.
General Director of Vietnam Customs, pursuant to the provisions in Decision No. 05/2012/QD-TTg dated 19/01/2012 of the Prime Minister and the guidance in this Circular, shall promulgate customs procedures for checking Bill cum VAT refund declaration form and cargo of foreigners on exit, to prepare facilities, to assign officials. In addition, The General Department of Vietnam Customs shall coordinate with the General Department of Taxation to guide Customs Units to pilot implement value added tax refund for foreigners to ensure unity and create favorable conditions for export, import activities and well perform customs administration.
The customs, tax agency, customs officials, tax officials and foreigners, business who sell goods, commercial banks as agents in the pilot, related organizations and individuals shall implement in compliance with the provisions in Decision No. 05/2012/QD-TTg and guidance in this Circular.
This Circular takes effect from June.1st.2012. However, the contents specified in Article 9, Article 10, Article 15, Article 16, Article 17, Article 18, Article 19, Article 20 and Article 21 of this Circular take effect from July 1st.2012.