International tourists will enjoy value-added tax (VAT) refunds whenthey purchase goods in Vietnam under a draft currently underconsideration by the Ministry of Finance.
Under the pilotplan approved by Prime Minister Nguyen Tan Dung in July, foreigntourists who buy goods at certain airports, tourism areas and shops inbig cities will receive a 10 percent refund on the tax they paid.
Goods purchased by foreigners are considered export commodities soevery purchase valued at more than more than 2 million VND (96 USD) perreceipt which is issued within 30 days of their exit from Vietnam willbenefit from the tax refund.
"The VAT refund aims topromote tourism, increase foreign currency in the country and encourageon-the-spot exports," said head of the ministry's Import-Export TaxDepartment Lo Thi Nhu.
The ministry has distributed clearcriteria to eligible businesses in Hanoi , HCM City andtraditional trade villages, Nhu said.
Vietnam has 161border-gates including six international airports. Under the pilot phaseof the plan, Noi Bai and Tan Son Nhat International airports will beselected for inclusion in the project from April 2012 to June 2016 asthey have the country's highest number of passengers. Security barriersat the airports will help ensure supervision of goods transported underthe mechanism.
"The pilot project will help authorities evaluate the mechanism's effectiveness," she said.
Under the programme, foreign tourists will not receive a full taxrefund because they will have to pay tax agency fees, meaning they willnot receive more than 10 percent of the total tax paid.
Surveys from the Vietnam Administration of Tourism showed that foreignvisitors stayed in Vietnam for an average of nine days per visitorand they spend about 72.5 USD a day.
Tourism experiencedthe highest growth when compared to other services in recent years aftertransport, finance, insurance and telecommunications.
Thecountry expects to welcome 5.5 million international tourists thisyear. In the first eight months of the year, the number had reachednearly 4 million, 18 percent higher than the same period last year./.
Under the pilotplan approved by Prime Minister Nguyen Tan Dung in July, foreigntourists who buy goods at certain airports, tourism areas and shops inbig cities will receive a 10 percent refund on the tax they paid.
Goods purchased by foreigners are considered export commodities soevery purchase valued at more than more than 2 million VND (96 USD) perreceipt which is issued within 30 days of their exit from Vietnam willbenefit from the tax refund.
"The VAT refund aims topromote tourism, increase foreign currency in the country and encourageon-the-spot exports," said head of the ministry's Import-Export TaxDepartment Lo Thi Nhu.
The ministry has distributed clearcriteria to eligible businesses in Hanoi , HCM City andtraditional trade villages, Nhu said.
Vietnam has 161border-gates including six international airports. Under the pilot phaseof the plan, Noi Bai and Tan Son Nhat International airports will beselected for inclusion in the project from April 2012 to June 2016 asthey have the country's highest number of passengers. Security barriersat the airports will help ensure supervision of goods transported underthe mechanism.
"The pilot project will help authorities evaluate the mechanism's effectiveness," she said.
Under the programme, foreign tourists will not receive a full taxrefund because they will have to pay tax agency fees, meaning they willnot receive more than 10 percent of the total tax paid.
Surveys from the Vietnam Administration of Tourism showed that foreignvisitors stayed in Vietnam for an average of nine days per visitorand they spend about 72.5 USD a day.
Tourism experiencedthe highest growth when compared to other services in recent years aftertransport, finance, insurance and telecommunications.
Thecountry expects to welcome 5.5 million international tourists thisyear. In the first eight months of the year, the number had reachednearly 4 million, 18 percent higher than the same period last year./.
