Is VAT refunded when selling to manufacturing enterprises?

Regarding this issue, Ho Chi Minh City Tax Department has the following opinion:

Pursuant to Clause 1, Article 9 of Law on Value Added Tax (VAT) No. 48/2024/QH15:

"Article 9. Tax rates

1. The 0% tax rate applies to the following goods and services:

a) Exported goods include: goods from Vietnam sold to organizations and individuals abroad and consumed outside Vietnam; goods from domestic Vietnam sold to organizations in duty-free zones and consumed in duty-free zones to directly serve export production activities; goods sold in quarantine areas to individuals (foreigners or Vietnamese) who have completed exit procedures; goods sold at duty-free shops;

b) Export services include: services provided directly to organizations and individuals abroad and consumed outside Vietnam; services provided directly to organizations in duty-free zones and consumed in duty-free zones to directly serve export production activities;

c) Other exported goods and services include: international transportation; vehicle rental services used outside the territory of Vietnam; aviation and maritime services provided directly or through agents for international transportation; construction and installation activities abroad or in duty-free zones; digital information content products provided to foreign parties and with records and documents proving consumption outside Vietnam according to Government regulations; spare parts and materials for repairing and maintaining vehicles, machinery and equipment for foreign parties and consumed outside Vietnam; goods processed for export according to the provisions of law; goods and services not subject to value added tax when exported, except for cases where the 0% tax rate specified in Point d of this Clause does not apply;…”.

Pursuant to Clause 1, Article 29 of Decree No. 181/2025/ND-CP dated July 1, 2025 of the Government detailing the implementation of a number of articles of the Law on Value Added Tax:

"Article 29. Tax refund for exports

1. Business establishments that export goods and services in a month or quarter and have input value-added tax of 300 million VND or more that has not been fully deducted will be refunded value-added tax on a monthly or quarterly basis, except for imported goods that are then exported to another country. In which:

a) The subjects eligible for tax refund in some export cases are determined as follows: in the case of export entrustment, it is the business establishment with goods entrusted for export; in the case of forwarding processing, it is the business establishment that signs an export processing contract with a foreign party; in the case of goods exported to carry out construction works abroad, it is the business establishment with goods exported to carry out construction works abroad.

b) Imported goods then exported to other countries are goods imported by business establishments from foreign countries to Vietnam and then directly exported or entrusted for export, excluding goods that are imported raw materials for production and processing of export goods.

Based on the above quoted content, we request Ms. Doan Thi Oanh to compare with the actual situation of production and business activities to comply with legal regulations.

Source: https://vtv.vn/ban-hang-cho-doanh-nghiep-che-xuat-co-duoc-hoan-thue-gtgt-100251031093041134.htm