Electronic tax refund applications reach a 99% rate

The Department of Taxation reported that, thanks to the robust and synchronised implementation of various measures, tax refund operations in 2026 have seen significant improvements and positive results, with electronic Value Added Tax (VAT) refund applications reaching a 99% rate.

VAT refund applications undergo fully automated risk classification without intervention by tax officials. Essentially, these applications are automatically categorised to determine whether they fall under the “inspect-before-refund” or “refund-before-inspect” procedure.

Notably, 87% of VAT refund applications classified under the “refund-before-inspect” category were processed and refunded by tax authorities within six working days of receiving complete documentation from the taxpayer.

Statistics as of August 11, 2026, indicated a 32% year-on-year increase in the total VAT refund amount, reaching 64.4% of the 2026 projected estimate. Tax authorities issued 11,627 refund decisions totalling 111.73 trillion VND, representing a 9% increase in the number of decisions issued. These results have actively supported businesses and investors in capital turnover, thereby boosting production, business operations, and exports.

To achieve positive results in VAT refunds, starting from the beginning of the fourth quarter of 2025 and continuing into early 2026, the Department of Taxation directed tax authorities at all levels to implement both fundamental and urgent measures.

These measures aimed to assist businesses and investors in complying with legal requirements regarding refunds, thereby yielding positive outcomes during the first seven months of 2026.

Currently, the tax sector is focusing on processing 1,927 applications requesting refunds totalling 34.52 trillion VND. Among these, 245 cases involve prolonged processing times — accounting for 1.7% of the total applications received and handled during the period — due to high-risk indicators that necessitate information verification prior to the refund.

Tax authorities have specifically notified the relevant taxpayers to coordinate a review and authenticate the validity of the applications and the refund amounts. Concurrently, tax authorities are collaborating with competent agencies to verify information and take action against enterprises whose applications are flagged as high-risk.

Timely resolution of tax policy issues

Based on practical experience in local refund operations and a focus on resolving obstacles within the VAT refund process, tax units have proposed various solutions. These aim to enhance refund management and shorten processing times — in accordance with the law — for compliant businesses, while simultaneously improving risk identification and control to detect, prevent, and strictly penalise instances of fraud or abuse of the refund policy.

In the coming period, the tax sector will continue to operationalise its commitments through key objectives and management solutions, steadfastly pursuing the application of information technology, big data, and artificial intelligence in risk analysis and assessment, data-driven management, risk management, inter-agency coordination, and administrative procedure reform. These efforts aim to build a transparent and equitable tax environment that facilitates legitimate businesses while strictly upholding tax law compliance.

Specifically, the sector targets increasing the ratio of “refund-first, audit-later” cases from 70% to 90% during the final four months of the year and to 95% by the first quarter of 2027; raising the rate of on-time tax refund processing from 78% to 90% in 2026; implementing an expedited tax refund programme in September 2026; and launching automated VAT refunds starting in December 2026.

To enhance the efficiency of tax refund management, ensure compliance with regulations and eligibility criteria, and simultaneously strengthen risk control and safeguard state budget revenue, the tax sector is committed to several key measures.

These include promptly addressing policy obstacles and proposing solutions to competent authorities regarding VAT refund policies — specifically those concerning on-the-spot import-export transactions — as well as reviewing, standardising, and automating VAT refund processing procedures.

Furthermore, the sector aimed to strictly manage dossier workflows, definitively resolve backlogs, allocate sufficient personnel with clearly defined responsibilities, and monitor progress on a weekly basis.

Concurrently, the sector will develop databases and utilise technology and AI to analyse and assess risks, categorising enterprises based on compliance levels (green, yellow, and red).

This approach aimed to shorten processing times for eligible dossiers, enhance transparency and accuracy, and facilitate the timely detection and prevention of refund fraud. Risk management and support efforts will be bolstered by refining risk criteria to identify high-risk enterprises and dossiers, and by proactively analysing data from enterprises seeking refunds to detect and isolate risks early.

The sector will also actively guide and support enterprises and investors — starting from the declaration and dossier preparation stages through to pre-submission risk assessment — to ensure compliance, reduce processing times, and minimise potential issues.

Enhanced coordination and data connectivity with customs authorities, the State Treasury, and banks will facilitate data sharing for taxpayer support and risk control in VAT refund processing, while disciplinary standards and the professional quality of civil servants will be strengthened.

Based on the results achieved and existing issues, the Department of Taxation affirmed it will continue to review the entire tax refund process, enhance the use of data and risk management, and focus on definitively resolving outstanding and overdue applications.

The goal is to ensure strict control over tax refund fraud while simultaneously shortening processing times for eligible applications, thereby ensuring the tax refund policy is truly effective and supports businesses in their production and operational activities.