More than 111.7 trillion VND in VAT refunded

In recent years, the tax sector has consistently identified tax refunds as a key task in helping businesses improve capital turnover and promote production, business and exports. In 2026 in particular, tax authorities at all levels have implemented a range of coordinated measures to ensure that VAT refunds are processed promptly and in accordance with regulations.

Alongside continued improvements to mechanisms and policies and efforts to remove obstacles, the tax sector has strengthened guidance for businesses from the tax declaration and application preparation stages. It has also proactively assessed risks, classified and reviewed applications, and closely monitored the progress of each case, particularly those involving key export industries and products. Responsibilities, processing deadlines and resources have been clearly assigned.

Notably, as digital transformation gathers pace, the tax refund process is becoming increasingly automated. VAT refund applications are now largely classified automatically by the risk assessment system to determine whether they fall under the “audit first, refund later” or “refund first, audit later” mechanism, without intervention by tax officials in the classification process.

Currently, 99% of VAT refund applications are processed electronically. Among applications eligible for the “refund first, audit later” mechanism, 87% have been processed by tax authorities within six working days of receiving complete documentation from taxpayers.

As of August 11, 2026, tax authorities had issued 11,627 tax refund decisions worth a total of 111.726 trillion VND, representing year-on-year increases of 9% in the number of decisions and 32% in the amount refunded. The amount refunded was equivalent to 64.4% of the 2026 tax refund estimate.

These results have helped businesses and investors replenish capital for production, business and export activities. They also reflect measures introduced by the Tax Department since the beginning of the fourth quarter of 2025 and pursued vigorously during the first months of 2026.

Despite these achievements, the tax sector is currently processing 1,927 applications involving requested refunds totalling 34.521 trillion VND. Of these, 245 have experienced prolonged processing times, accounting for 1.7% of all applications received and processed by tax authorities during the period.

According to the Tax Department, these are mainly applications showing signs of high risk and requiring information to be verified before refunds can be issued. Tax authorities have provided specific notifications to taxpayers so they can coordinate in reviewing and verifying the validity of applications and the amounts claimed. They are also working with relevant authorities to verify and investigate a number of businesses whose applications have been classified as high-risk.

Shortening processing times without compromising oversight

Faced with the dual requirement of strictly controlling fraud risks while shortening processing times so businesses can quickly unlock their cash flow, the Tax Department has held an online conference with tax authorities nationwide on VAT refund procedures.

At the conference, participating units conducted a frank assessment of shortcomings and difficulties in processing applications and proposed solutions to improve the quality of tax administration while safeguarding taxpayers’ legitimate rights and interests.

According to the Tax Department, tax refunds are among the issues most frequently raised by businesses at meetings between the business community and agencies of the National Assembly, the Government, Government leaders and the Ministry of Finance. This underscores the need for the tax sector to substantively address bottlenecks in the process, particularly for applications submitted by businesses with strong compliance records.

The Tax Department stressed that tax officials are responsible for providing timely support and facilitating taxpayers while ensuring that refunds are granted to the right recipients, in the correct amounts and in accordance with the law. Efforts to prevent and combat the trading and use of illegal invoices must be strengthened, but risk-management measures must not prolong the processing of applications that meet all eligibility requirements.

To achieve tangible improvements, the tax sector aims to raise the proportion of applications subject to the “refund first, audit later” mechanism from 70% to 90% during the final four months of 2026 and to 95% in the first quarter of 2027. The proportion of tax refund applications processed on time is expected to increase from 78% to 90% within 2026.

A specific automation roadmap has also been established: the fast-track tax refund programme will be introduced in September 2026; support for pre-filled VAT returns will be rolled out in October 2026; and automated VAT refunds are expected to begin in December 2026.

To achieve these targets, the Tax Department has instructed its units to promptly identify and consolidate policy-related obstacles and propose solutions to competent authorities, including issues concerning VAT refunds for on-the-spot import and export activities.

Tax refund procedures will continue to be reviewed, standardised and automated. Tax authorities are required to closely monitor the circulation of applications, fully resolve backlogged cases, allocate sufficient personnel, clearly assign responsibilities and review progress on a weekly basis.

One of the key measures is to develop databases and apply artificial intelligence to analyse and assess risks, classifying businesses into three categories of green, yellow and red. Classification according to compliance levels will help shorten processing times for eligible applications while improving the ability to detect and prevent tax refund fraud.

The tax sector will also continue refining its criteria for identifying high-risk businesses and applications, proactively analysing data on businesses seeking refunds to identify potential risks at an early stage, improving tools for tracing invoice chains, and adding control criteria from the invoice issuance and tax declaration stages.

Invoice verification between tax authorities must be targeted and based on system data, avoiding broad-based verification that unnecessarily prolongs processing times. At the same time, the quality of post-refund inspections will be improved through stronger ex-post supervision to promptly detect and address fraudulent practices.

For businesses and investors, tax authorities will strengthen guidance from the tax declaration and application preparation stages and conduct risk assessments before refund applications are submitted. Providing support at an early stage is intended to ensure that applications are complete and compliant, minimise difficulties and shorten processing times.

The Tax Department has instructed tax authorities in provinces and cities to organise conferences providing support on VAT refunds for local businesses and associations between August 18 and 23, 2026.

The tax sector will also strengthen data connectivity and sharing with customs authorities, the State Treasury, banks and other relevant agencies to support taxpayers while improving risk control. Administrative discipline and the quality of public-duty performance among tax officials will continue to be tightened.

Building on the results achieved, the Tax Department affirmed that it will conduct a comprehensive review of the entire process, focus on fully resolving backlogged and overdue applications, and strengthen data-driven administration. The key requirement is to strictly control fraudulent practices without allowing administrative measures to become barriers for highly compliant businesses, thereby ensuring that the tax refund policy delivers its intended benefits and effectively supports businesses in their production and commercial activities.

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