A VAT refund for investment projects in Vietnam lets a company recover input VAT paid on a new or expansion project (construction, imported machinery, design and installation services) before the project produces any output VAT to absorb it. The rule is in Article 15(2) of the Law on Value Added Tax No. 48/2024/QH15: the company must use the credit (deduction) method, the project must still be in its investment phase, project input VAT must first be offset against VAT payable on the company's existing business in the same period, and the uncredited balance must be at least VND 300 million. If charter capital has not been fully contributed, a conditional business line is not yet licensed, or the project extracts natural resources, the balance is not refunded; it is carried forward and credited later.
The procedure changed on 1 July 2026, when the Law on Tax Administration No. 108/2025/QH15, Decree 252/2026/ND-CP and Circular 89/2026/TT-BTC replaced the 2019 law, Decree 126/2020/ND-CP and Circular 80/2021/TT-BTC. The first refund claim for each project is always subject to a pre-refund audit at the company's premises (Article 30(1)(a) of Decree 252), so the timing of that audit belongs in the project's cash-flow plan.
Which rules govern a VAT refund for investment projects in Vietnam?#
Much of what is published in English still cites Circular 219/2013/TT-BTC, Circular 80/2021/TT-BTC and a "40-day" timeline under the 2019 Law on Tax Administration. None of these apply to a claim filed today.
| Layer | Instrument | Key provisions | Replaces |
|---|---|---|---|
| Eligibility | VAT Law 48/2024/QH15 (from 1 July 2025), amended by Law 149/2025/QH15 (from 1 January 2026) | Article 15(2) and (9) | VAT Law 2008 |
| Eligibility | Decree 181/2025/ND-CP, amended by Decree 359/2025/ND-CP and Decree 144/2026/ND-CP | Articles 30 and 37 | Decree 209/2013/ND-CP |
| Procedure | Law on Tax Administration 108/2025/QH15 (from 1 July 2026) | Articles 18 and 22 | Law 38/2019/QH14 |
| Procedure | Decree 252/2026/ND-CP (from 1 July 2026) | Articles 29 to 31 | Decree 126/2020/ND-CP (Article 74(3)) |
| Procedure | Circular 89/2026/TT-BTC (from 1 July 2026) | Article 19; Articles 45 to 54 | Circular 80/2021/TT-BTC (Article 99(3)(h)) |
Returns for tax periods before 1 July 2026 still use the old forms (Article 100(1) of Circular 89).
Who qualifies for a VAT refund for investment projects in Vietnam?#
All of the following must be met (Article 15(2) and (9) of the VAT Law; Articles 30 and 37 of Decree 181):
- Credit method. The company pays VAT by the credit method, which applies automatically from VND 1 billion of annual revenue or by voluntary registration (Article 11(2) of the VAT Law). A newly established company with an investment project may register voluntarily from day one (Article 21(2)(b) to (d) of Decree 181). It must keep accounting books and have a bank account under its tax code.
- A new or expansion project under investment law. An expansion project develops an operating project by increasing scale or capacity, upgrading technology or reducing pollution; a new project is a first project or one independent of existing ones (Article 3(5) and (6) of the Law on Investment 143/2025/QH15). Phased projects qualify; projects that do not create fixed assets of the company do not.
- Investment phase. The phase ends on the date the project (or the phase or item) first earns revenue, ignoring trial-run revenue, financial income and sales of surplus materials.
- Creditable input VAT. VAT invoices, import VAT receipts or receipts for VAT paid on behalf of foreign contractors, and non-cash payment evidence for purchases of VND 5 million or more (Article 14(2) of the VAT Law). Deferred or instalment purchases of VND 5 million or more are creditable before payment falls due, but must be reversed in the period payment falls due if there is no non-cash payment evidence (Article 26(2)(g) of Decree 181). Since 20 June 2026, the VAT can be re-credited in the period the non-cash payment is made (Article 4 of Decree 144). Retention amounts under construction contracts are the usual trap.
- At least VND 300 million left after offsetting.
The condition that the seller must have filed and paid VAT on the invoices was removed from 1 January 2026 (Article 1(3) of Law 149/2025/QH15; Article 1(2) of Decree 359/2025/ND-CP). Claims received before that date but not yet decided are also released from it (Article 2(2) of Decree 359).
How the VND 300 million test works#
An operating company must use project input VAT to reduce VAT payable on its existing business in the same period. The project is declared on a separate return (form 02/GTGT), and the offset is capped at VAT payable on the main return (form 01/GTGT) (Article 19(5)(b.7) of Circular 89). Only what remains can be claimed as a VAT refund for investment projects in Vietnam. A start-up with no other business has nothing to offset, so the project balance accumulates until it reaches VND 300 million.
Hypothetical example (VND million). Company A, a foreign-invested manufacturer filing monthly, builds a second factory recorded as an expansion on its amended investment registration certificate (IRC).
| Month | Project input VAT (02/GTGT) | VAT payable on existing business (01/GTGT) | Used in offset | Project balance | Result |
|---|---|---|---|---|---|
| 1 | 1,500 (import VAT on machinery 1,100; construction 400) | 600 | 600 | 900 | Refund of 900 can be claimed |
| 2 | 350 | 500 | 350 | 0 | Nothing to claim |
| 3 | 420 | 200 | 200 | 220 | Below 300, carried forward |
| 4 | 180 | 0 | 0 | 400 | Refund of 400 can be claimed |
Two points are often missed. Trial-run revenue during the investment phase goes on the 01/GTGT return and must be offset against project VAT. And a refund requires a separate 02/GTGT return for each project (Article 19(5)(b.7) of Circular 89); in our reading, project VAT put on the general return is simply credited in the normal way.
When is project VAT carried forward instead of refunded?#
Article 15(2)(b) of the VAT Law and Article 30(3) of Decree 181 list four cases. The VAT is not lost, but it can only be credited in later periods.
- Charter capital not fully contributed at the date the refund claim is filed. Members or shareholders must contribute within 90 days of the enterprise registration certificate; a limited liability company that misses the deadline must register a capital reduction within 30 days (Articles 47(2) and (4), 75(2) and (3) and 113(1) of the Law on Enterprises). The test is charter capital, not the total investment capital on the IRC, which usually includes loans.
- A conditional business line that does not yet meet its conditions. A refund is still available if the licence has already been issued during the investment phase, if the sector law does not yet require it during that phase, or if no licence is required (Article 30(2) of Decree 181).
- Conditions lost during operations, from the date a licence is withdrawn or non-compliance is found.
- Natural-resource extraction projects, and projects producing processed resource products on the list in Appendix II to Decree 181, replaced from 20 June 2026 by the list attached to Decree 144/2026/ND-CP (Article 15(2)(b2) and Article 5(23) of the VAT Law, which refers to "the list issued by the Government"; Article 4(14) of Decree 181; Article 5 of Decree 144). Oil and gas exploration and development projects are excluded from this restriction. The old "resources plus energy at 51% or more of cost" test now sits in Appendix V to Decree 181 for export duty purposes; in our reading, the refund test is whether the product is on the list.
Some projects never generate creditable input VAT in the first place: projects producing VAT-exempt output, fixed assets of banks, insurers, securities firms, clinics and training institutions (Article 23(13)(b) of Decree 181), and most export processing enterprises, which buy imported machinery outside the VAT net and most local inputs at 0%.
Completed or terminated projects#
If a project, phase or item has been completed without a refund claim, the claim must be filed within one year of completion, meaning the date the project, phase or item first earns revenue (Article 15(2)(a) of the VAT Law). The law does not say what happens after one year. In our reading, the right to a refund lapses but the balance can still be credited against output VAT, because nothing in the law cancels it and Article 30(1) of Decree 181 lets the uncredited balance of a completed project be handed over "to continue declaring and crediting"; confirm with the tax office before letting the deadline pass.
If a project is terminated during the investment phase before its main activity produces output VAT, the company must repay VAT already refunded, and any unrefunded balance is not refunded (Article 30(1) of Decree 181). This belongs in any decision to terminate an investment project.
Where to file when the project is in another province#
The tax office that receives the project's VAT returns is also the office that decides the refund (Article 45(2)(b) of Circular 89). Under Article 19(2)(b.4) of Circular 89:
| Situation | Where the 02/GTGT return is filed |
|---|---|
| Project in the same province as the head office | Tax office managing the company |
| Company managed by the Large Enterprise or E-commerce Tax Sub-department | Provincial tax office where the project is located |
| Project in another province, run by a project management board, branch or new company | That unit files with the tax office where the project is located |
| Project in another province, no such unit | The company files with the tax office where the project is located |
| Project across several provinces | Tax office managing the project unit, or the company if there is none |
A project management board or branch that declares the project may credit invoices issued in the investor's name for costs the investor paid, and the investor may not credit them again (Article 23(9) of Decree 181). After the 2025 merger of provinces, some projects that were in another province are now in the same one; in our reading, "another province" follows current boundaries, and companies with claims in progress should confirm the filing office with the provincial tax office.
What goes in the dossier for a VAT refund for investment projects in Vietnam?#
Under Article 46(1)(b) of Circular 89, the investor (or the project unit) files:
- VAT return form 02/GTGT with the refund line completed;
- refund appendix form 01-8/GTGT;
- a copy of the IRC, the investment policy approval or, where neither is required, the investor's project decision;
- for projects with construction: land-use right certificate, land allocation or lease decision or land lease contract, and the construction permit where one is required;
- evidence of charter capital contribution;
- for conditional business lines already licensed in the investment phase: the licence or approval;
- where a project board, branch or new company files: its establishment decision, operating rules and the project assignment decision.
Items 3 to 7 are only needed with the first claim or when they change. The general refund request form 01/HT is not used for project refunds. The amount claimed can only be increased by a supplementary return before the refund claim is filed (Article 12(6)(a) of Decree 252), and a claim can be withdrawn with form 01/DNHUY until the refund decision or the audit decision is issued (Article 47(2) of Circular 89).
How long does a VAT refund for investment projects in Vietnam take?#
The first claim for each project, claims filed within two years after a tax evasion penalty, and claims (or parts of claims) flagged as high risk are subject to a pre-refund audit; everything else is refunded first and may be audited later (Article 30 of Decree 252; Article 48(1) of Circular 89).
| Step | Deadline | Basis |
|---|---|---|
| Acceptance notice | 3 working days from receipt | Article 31(1)(a) of Decree 252 |
| Refund-first claims: request for explanation | Sent within 3 working days; company replies within 10 working days; this time is not counted | Article 49(1)(b.1) of Circular 89 |
| Refund-first claims: decision | 6 working days from the acceptance notice | Article 31(2)(a) of Decree 252 |
| Audit-first claims: decision | 10 working days from the audit conclusion | Article 31(2)(b) of Decree 252 |
| State Treasury payment | 1 working day from the refund order | Article 51(2) of Circular 89 |
For an audit-first claim, the 10 days run from the audit conclusion. The law caps only the audit itself: 20 days from the announcement of the audit decision, extendable once by up to 20 days, or 40 days plus up to 40 for companies with related-party transactions, excluding suspensions (Article 22(3)(d) of the Law on Tax Administration 108). The law does not say these are working days. A file that reconciles each invoice with its contract, acceptance minutes and bank payment, plus customs declarations and import VAT receipts for machinery, shortens it.
Refunds paid first can be audited on site for five years from the refund decision (Article 22(3)(a) of the Law on Tax Administration 108). Over-refunds are recovered with late-payment interest of 0.03% per day (Article 16(2)(a)) and may be penalised under Decree 125/2020/ND-CP, which remains in force after 1 July 2026 (Article 74(4) of Decree 252).
Points foreign-invested companies get wrong#
- Paying capital the wrong way. Cash contributions by foreign investors go through the direct investment capital account. Expenses paid by the parent on the subsidiary's behalf are a frequent problem: in Official Letter 5348/CT-CS of 20 November 2025 (a reply on one case, not legislation), the Tax Department did not decide the point itself but asked the provincial tax office to check with the competent authorities whether costs paid by the parent counted as charter capital before deciding the refund.
- IRC capital schedule longer than 90 days. The refund test looks at charter capital at the filing date. If capital is still being paid in, file after it is complete, or, in our reading, reduce charter capital to the amount actually paid.
- Pre-incorporation invoices. Invoices in the name of a person authorised by the founders are creditable if there is a written authorisation and the company reimburses by bank transfer for invoices of VND 5 million or more (Article 24(3)(b) of Decree 181).
- Foreign contractor VAT. VAT the company pays on behalf of an overseas designer or installer is project input VAT, credited on the payment receipt (see foreign contractor tax). Imported machinery for fixed assets still bears import VAT, apart from a few narrow categories in Article 5(17) of the VAT Law.
For conditional sectors, licence applications should run alongside construction so that the project does not fall into the carry-forward case. LexData handles business licences and IRC amendments for expansion projects.
