Tax refunds for enterprises constitute a significant entitlement that enables enterprises to optimize cash flow and ensure compliance with Vietnamese tax regulations. Nevertheless, many enterprises remain unfamiliar with the applicable rules, conditions, and procedures governing tax refunds. The following article provides essential insights into tax refunds for enterprises, clearly understanding current practices, legal frameworks, procedural guidance, and responses to common inquiries, thereby assisting enterprises in implementing tax refund procedures effectively and in compliance with the law.

I. Current practices relating to tax refunds for enterprises

In reality, numerous enterprises have not adequately updated on legal regulations relating to tax refunds, resulting in rejected applications or prolonged processing times. It directly affects their cash flow and financial planning, particularly for small and medium-sized enterprises.

Tax refund procedures also present common challenges. Applications must include complete supporting documents, valid invoices, and legally compliant records, and must be submitted within prescribed timelines. Even minor errors may lead to requests for supplementation by tax authorities, thereby causing delays and additional costs for enterprises.

Additionally, specific circumstances such as enterprise dissolution, changes in registered headquarter address, or outstanding tax liabilities further complicate the tax refund process. Enterprises are required to properly implement offsetting procedures and comply with relevant regulations to safeguard their lawful interests.

Therefore, given the complexity of the process, enterprises are advised to prioritize the use of professional tax advisory services when handling tax refund procedures. Such an approach helps save time, reduce risks, and ensure that tax refunds are processed accurately and efficiently.

II. Legal framework governing tax refunds for enterprises

1. What is a tax refund for enterprises?

A tax refund for an enterprise means the tax authority refunds amounts that an enterprise has overpaid or over-credited in comparison with its actual tax liability. Pursuant to Article 60 of the Law on Tax Administration 2019 (as amended in 2024), tax authorities are responsible for refunding overpaid tax amounts where the enterprise has no outstanding tax liabilities and submits a valid application dossier. Article 61 further provides that enterprises are entitled to tax refunds in cases involving complaint resolution decisions or court judgments/decisions relating to previously paid tax amounts.

With respect to value-added tax (VAT), tax refunds are granted where enterprises export goods or services or have overpaid VAT, subject to compliance with procedures and document requirements under Circular No. 38/2015/TT-BTC (as amended by Circular No. 39/2018/TT-BTC).

Tax refunds help ensure lawful entitlements, maintain cash flow, and promote tax compliance. Enterprises are eligible for refunds only where their applications are complete and valid; tax authorities are entitled to offset refund amounts against any outstanding tax liabilities.

2. What are the conditions for tax refund eligibility under current law?

Tax refunds are an important entitlement that supports cash flow management, financial optimization, and compliance with tax obligations. However, enterprises are only eligible for tax refunds when all statutory conditions are satisfied.

A clear understanding of these conditions enables enterprises to proactively prepare documents, minimize risks, and expedite the refund process:

  • Lawful tax declaration and payment: Enterprises must accurately declare and duly pay taxes in accordance with statutory timelines. Any overpaid tax amount must be clearly determined and supported by valid documents for refund purposes. It is stipulated under Article 60 of the Law on Tax Administration 2019 (as amended in 2024).
  • No outstanding overdue tax liabilities: At the time of submission of the refund application, the enterprise must not have any overdue tax liabilities. Where such liabilities exist, tax authorities are entitled to offset them against the refundable amount. It is regulated under Article 60 of the Law on Tax Administration 2019 and further detailed in Article 9 of Decree No. 126/2020/ND-CP.
  • Valid and complete refund dossier: The application must include a tax refund declaration, invoices, supporting documents, and a power of attorney (if a tax agent is engaged). The dossier may be submitted directly or via the tax authority’s electronic portal, in accordance with Articles 12 and 13 of Decree No. 126/2020/ND-CP.
  • Compliance with specific circumstances: In cases such as enterprise dissolution, change of headquarter address, or authorization to a third party, additional procedural requirements must be satisfied as prescribed under Articles 9 and 14 of Decree No. 126/2020/ND-CP.
  • Compliance with conditions applicable to specific taxes: For VAT, refunds are only granted where enterprises export goods/services or where input VAT exceeds output VAT. Procedures are governed by Circular No. 38/2015/TT-BTC (as amended by Circular No. 39/2018/TT-BTC).

In summary, these conditions constitute fundamental prerequisites for tax refund eligibility. A thorough understanding enables enterprises to prepare properly, safeguard lawful interests, minimize risks of rejection or delays, and enhance compliance with tax obligations.

3. What are the procedures for tax refunds?

Although tax refunds are an important entitlement, enterprises must strictly comply with procedural requirements to obtain refunds lawfully. Understanding each step helps reduce risks, save time, and ensure legal compliance.

- Step 1: Preparation of the tax refund dossier

The dossier must be complete, lawful, and appropriate to the type of tax involved, including:

  • Tax refund declaration in the prescribed form;
  • Relevant invoices and supporting documents, including input/output invoices, payment evidence, or contracts demonstrating overpayment or excess credit;
  • Power of attorney (if the procedure is carried out by a third party).

These requirements are stipulated under Articles 12 and 13 of Decree No. 126/2020/ND-CP.

- Step 2: Submission of the application

Enterprises may submit the dossier directly to the managing tax authority or via the General Department of Taxation’s electronic portal. Proper submission ensures faster processing.

- Step 3: Review by the tax authority

The tax authority will examine the validity and accuracy of the dossier and determine the refundable amount. During such a stage, enterprises may be requested to provide additional documents or explanations. This step is governed by Article 61 of the Law on Tax Administration 2019 (as amended in 2024).

- Step 4: Processing and issuance of refund decision

If the dossier is valid, the tax authority will process the refund to the enterprise’s account. Processing timelines are regulated under Article 62 of the Law on Tax Administration 2019 and further detailed in Article 14 of Decree No. 126/2020/ND-CP. Where outstanding tax liabilities exist, offsetting will be conducted prior to refund.

- Step 5: Notification of results

The enterprise will receive official notification of the refund, including the refunded amount and timing. It confirms the enterprise’s lawful entitlement.

Accordingly, proper preparation and understanding of procedures enable enterprises to minimize risks of rejection or delays, ensure compliance, and enhance transparency and efficiency in tax administration.

III. Questions on tax refunds for enterprises 

1. Are enterprises eligible for tax refunds upon dissolution or cessation of operations?

Enterprises remain eligible for tax refunds during dissolution or cessation, provided that legal conditions are satisfied and no outstanding tax liabilities exist.

Pursuant to Article 60 of the Law on Tax Administration 2019, tax authorities must refund overpaid taxes where the enterprise has no outstanding liabilities and submits a valid application. In dissolution cases, the refund dossier must be submitted before completion of dissolution procedures to ensure financial entitlements.

2. Is there a limit on the number of tax refund claims within a fiscal year?

The Law on Tax Administration 2019 does not impose any limitation on the number of tax refund claims within a fiscal year. Enterprises may submit multiple refund applications where overpaid tax arises and valid documentation is provided.

Under Article 60, overpaid amounts may be offset against outstanding obligations or refunded if no liabilities remain. However, refunds will not be processed in certain cases, such as where the enterprise declines the refund in writing, fails to operate at its registered address and does not respond after one year of public notice, or where overpaid amounts exceed 10 years without request for refund or offset.

3. Can enterprises authorize tax service providers to handle refund procedures?

Enterprises may authorize organizations or individuals, including tax service providers, to implement refund procedures on their behalf. The authorization document must clearly specify its scope and be signed by the legal representative.

Pursuant to Article 7 of Decree No. 126/2020/ND-CP, tax authorities will process refund applications only where valid authorization and complete documentation are provided, regardless of the tax type.

4. Which tax authority is competent if the enterprise changes its headquarter address?

Where an enterprise relocates to a jurisdiction under a different tax authority, the refund application must be submitted to the new managing tax authority. It is guided by Article 45 of the Law on Tax Administration 2019.

The enterprise must complete procedures for transferring tax records, after which the new tax authority will handle the refund to ensure continuity and accuracy.

5. Can enterprises receive refunds after offsetting outstanding tax liabilities?

Where an enterprise has overpaid tax, late payment interest, or penalties, the tax authority will first offset such amounts against any outstanding liabilities. It is provided under Clause 1, Article 25 of Circular No. 80/2021/TT-BTC.

If a surplus remains after offsetting, or if no liabilities exist, the enterprise may request a refund. However, refunds are only processed once all outstanding obligations have been settled. If liabilities remain, offsetting will take precedence, and immediate refund will not be granted.

IV. Legal advisory services on tax refunds

Tax refund procedures require precision and strict compliance with legal regulations. Without a proper understanding, applications may be rejected or delayed. To assist enterprises in saving time, reducing costs, and minimizing legal risks, NPLaw provides comprehensive and professional advisory services relating to tax refunds.

NPLaw offers detailed advice on eligibility conditions, enabling enterprises to determine whether they qualify for refunds under the Law on Tax Administration 2019 and relevant implementing regulations. We also assist in drafting and reviewing refund dossiers to ensure that all invoices, supporting documents, and tax reports are complete and compliant.

Furthermore, NPLaw may represent enterprises in working with tax authorities, providing explanations and addressing issues arising during the review process. In cases of refusal or delay, we provide advisory and representation services for complaints and dispute resolution to safeguard clients’ lawful interests.

With a team of experienced lawyers and legal professionals specializing in taxation, NPLaw is committed to supporting enterprises throughout the entire tax refund process, ensuring efficiency, transparency, and full compliance with applicable laws.