While less than 7,500 foreign travellers enjoyed a VAT refund in 2013 in Vietnam, the government wants to open more refund counters to turn shopping more attractive for international visitors.
HO CHI MINH CITY – The number if far of being impressive. While
Vietnam received in 2013 over 7.5 million of travellers, only 7,400 enjoyed last year a VAT refund, collecting a total of US$ 1.27 million. A drop compared to travellers’ total spending of US$ 14.8 million.
Authorities blame the lack of attraction to the refund program to the fact that few people really know about the refund scheme. They also blame unscrupulous sellers not filling properly the reimbursement fund as they only look at making sales. And finally the lack of popularity of Vietnam’s VAT refund program hangs to the fact that they are just too little outlets able to operate. Until now, only two refund counters are available for foreign travellers at each Noi Bai International Airport in Hanoi and Tan Son Nhat International Airport in Ho Chi Minh City. Only 69 companies based in Vietnam currently adhere to the VAT refund system.
But the Vietnamese government wants things to change. The VAT refund scheme will be extended to include international seaports as well as two new airports, Danang and Nha Trang/Cam Ranh international airports. The latter is turning increasingly popular for Russian travellers.
The General Department of Vietnam Customs proposes also to encourage commercial banks to join the tax refund programme and allowing more companies to sell unlimited tax-refunded goods. Besides, Vietnamese people permanently residing in foreign nations carrying passports or equivalent papers issued by foreign competent authorities will also have their VAT refunded. These changes will be supplemented by the General Department of Vietnam Customs to the new circular that replaces the Circular 58/2012/TT-BTC.
Refund validity is also due to be extended from 30 to 60 days following the date travellers leave Vietnam. The new regime is due to be activated by the end of the year.
According to local newspapers, the number of foreigners doing tax refund procedures is suddently taking off, a year after it started. Over 2,000 international visitors obtained a VAT refund in January and February of this year.
Luc Citrinot a French national is a freelance journalist and consultant in tourism and air transport with over 20 years experience. Based in Paris and Bangkok, he works for various travel and air transport trade publications in Europe and Asia.
