The Vietnam Tax Authority has announced plans to review pending value-added tax (VAT) refund applications while increasing the use of technology to assist businesses. This announcement was made during a conference held on September 24, 2026, in Hanoi, focusing on resolving challenges in the VAT refund process.

During the conference, representatives from various business associations highlighted the difficulties faced by foreign direct investment (FDI) companies, particularly concerning the verification of input invoices. Due to suppliers being located across multiple regions, the verification process can become prolonged, impacting the overall timeline for processing tax refunds.

The Vietnam Foreign Investment Enterprises Association (VAFIE) suggested that the Tax Authority consider a flexible risk assessment mechanism. This would allow the tax agency to retain only the tax amount related to specific invoices under scrutiny, rather than delaying the entire refund process for the business.

Additionally, VAFIE raised concerns about VAT policies related to export activities, noting that different interpretations exist regarding what constitutes consumption outside of Vietnam. They urged authorities to clarify this definition and to consider international practices in VAT regulations.

Another issue raised was the VAT applied to certain activities in quarantine zones, with calls for further examination of how these cases are handled, especially for situations arising before recent regulatory changes.

In response to these concerns, Mai Son, Deputy Director of the Tax Authority, acknowledged the feedback from businesses and associations. He emphasized that the agency would continue to review both current and outstanding applications, despite the number being relatively low. However, some cases have indeed taken longer than expected.

Looking ahead, the Tax Authority aims to enhance the use of technology, working towards an automated tax refund system. This includes developing a suggested declaration form for VAT refunds to assist businesses in reviewing their information before submitting applications.

Once the automated system is fully developed, the Tax Authority plans to collaborate with associations to connect with compliant businesses, facilitating quicker tax refunds. Furthermore, local tax agencies have been instructed to improve communication with businesses, ensuring clear responses to each application.

Businesses will be informed about the specifics of their tax refunds, including the amount approved, the amount denied, reasons for any denials, and the time required for verification. This transparency is expected to streamline the refund process significantly.