Illustrative photo (Source: VNA)HCMCity (VNA) - Experts have urged simplifying the procedures toreceive refunds on value-added tax (VAT) for foreign tourists.
Speakingat a seminar on VAT refunds on December 6 in Ho Chi Minh City, Dr. Pham Trung Luong,Vice Chairman of the Vietnam Tourism Education Association, said that VATrefunds encourage tourism and boost visitors’ spending, but the procedures toreceive refunds in Vietnam was unclear and inconsistent.
Asa result, many tourists at border gates and airports do not receive VATrefunds, he added.
LawyerNguyen Van Hau, Chairman of the Vietnam Law Arbitration Centre, said foreigntourists and overseas Vietnamese currently receive VAT refunds on purchasesmade in Vietnam under a circular that took effect in 2014.
Visitorsleaving Vietnam can claim 85 percent of the VAT charged on goods bought in thecountry.
Goodseligible for a VAT refund must not be among those prohibited for export asregulated by the Ministry of Industry and Trade and should not be goods subjectto special management.
Toqualify for a VAT refund, a tax refund declaration form must be issued within30 days from the departure date of the traveller. A valid invoice for goodscosting at least 2 million VND (90 USD) must be presented.
VATrefunds will be paid in VND or a foreign currency in line withcurrent bank exchange rates, according to Hau.
Beforesecurity and customs checks on flights, foreigners at airports must submitseveral documents for inspection at the customs counter to claim a refund.These include a bill-cum-VAT refund declaration form and a receipt, along withthe goods in question.
Theforeigner must also show a passport or ID papers.
Ifthe purchases are not taken on board as hand luggage, the foreign travellermust present the goods and a tax invoice at a VAT refund desk or to a customsofficial prior to check-in.
PhanDinh Hue, Director of Vong Tron Viet Travel Company, said the purpose of VATtax refunds was to encourage tourism and the purchase of goods made in Vietnam.
“Itshould never be considered a favour we do for tourists,” he said. “Our surveyshows that most foreign visitors are primarily concerned about fake orcounterfeit goods, instead of the price. Some European customers havecomplained about the quality of lacquer items purchased in Vietnam.”
Vietnamis also not considered a major shopping destination, so visitors are notparticularly interested in VAT refunds, he said.
LawyerBui Quang Tin pointed out that counterfeit goods and imported Chinese goodswere prevalent in the market.
Forexample, the recent Khaisilk scandal, a big company that was found importingChinese goods under its brand name, has discredited many Vietnamese brands, hesaid.
“Thismakes it more difficult for international visitors to get VAT refunds as thequality of the purchased goods is not in line with the content declared on theinvoice,” he said.
Only649 stores of 80 enterprises had taken part in the VAT refund programme as ofthe end of last month, according to the HCM City Department of Tourism.
EconomistDinh The Hien said the current VAT refund for tourists was still not prevalentin Vietnam, with only nine tax border gates, mostly in HCM City.
VATrefunds are more common and more easily secured in Singapore, Hong Kong, the Republicof Korea and Japan, among other countries, he said.
Hesaid that many foreigners were unaware of Vietnam’s VAT refund policy.
ShaunAng, a Singaporean photographer who has travelled between Singapore and Vietnamfor 10 years, said he did not know about the VAT refund scheme.
“TheVAT refund can promote tourism, so I think the scheme should be furtherpromoted so that foreigners know about it,” he said.
“TheVietnamese Government should make the procedures easy and convenient forforeigners,” he told Vietnam News. “It’s really easy to get a VATrefund at Singapore’s Changi International Airport. Visitors can also get VATrefund easily in some big stores in town.”
OngDin Han, of Malaysia told Vietnam News: “I travel between Vietnamand Kuala Lumpur every month for business, but I was unaware of the policy.”
Accordingto the customs division at HCM City’s Tan Son Nhat International Airport, theamount of VAT refunds so far this year was 35.5 billion VND (1.56 million USD)compared to 44 billion VND (1.94 million USD) last year.
LeTuan Binh, deputy director of the customs department of Tan Son Nhat airport,said around 40,000 people arrive and depart from the airport every day, withhalf of that figure representing departures.
However,the total number of VAT refunds being processed daily at Tan Son Nhat airportare worth a total of only 100 million VND (4,400 USD), which shows the lowdemand for such refunds.
MostVAT refund items include sunglasses, cosmetics, handbags, clothes, footwear,cellphones and watches.
Theseminar on VAT refunds was organised by Thanh Nien Newspaper Joint-StockCompany.-VNA
VNA
