Vietnam VAT Refunds: Fast-Track Processing Starts in September, Automation Planned for December 2026

Vietnam’s Tax Department is accelerating VAT refunds through risk-based processing, a fast-track programme from September 2026 and automated refunds from December. The roadmap aims to shorten processing times while maintaining controls against invoice and refund fraud.

Vietnam’s Tax Department is accelerating the digitalisation of value-added tax (VAT) refunds, with a fast-track refund programme planned for September 2026, support for pre-filled VAT returns in October and automated VAT refunds expected from December 2026. The measures form part of an administrative roadmap to shorten refund processing times while maintaining risk controls against fraud.

The initiative does not introduce a new VAT refund entitlement or change the underlying conditions for claiming a refund. Instead, it focuses on how tax authorities classify, process and verify refund applications through greater automation and risk-based analysis. Faster processing will therefore depend not only on eligibility, but also on the taxpayer’s compliance profile and the risk indicators identified in its data and invoice chain.

Vietnam’s Tax Department plans to increase the share of applications handled under the “refund first, audit later” mechanism from around 70% to 90% during the final four months of 2026, followed by 95% in the first quarter of 2027. It also plans to raise the proportion of refund applications processed on time from 78% to 90% during 2026.

The digitalisation of the refund process is already advanced. According to the Tax Department, 99% of VAT refund applications are currently processed electronically. Applications are generally classified automatically by the risk assessment system to determine whether they fall under “audit first, refund later” or “refund first, audit later”.

Among applications qualifying for “refund first, audit later”, 87% were processed within six working days after complete documentation was received. As of August 11, 2026, tax authorities had issued 11,627 refund decisions worth VND 111.726 trillion (3,682,488,960 Euro). The number of decisions increased by 9% year on year, while the amount refunded rose by 32% and represented 64.4% of the annual refund estimate.

The next phase is intended to move more of the refund lifecycle into automated systems. The Tax Department plans to introduce a fast-track refund programme in September 2026, followed by support for pre-filled VAT returns in October. Automated VAT refunds are scheduled to begin from December 2026.

The roadmap is closely linked to risk management. Tax authorities plan to use databases and artificial intelligence to classify taxpayers into green, yellow and red risk groups based on compliance. Lower-risk businesses should be able to move through the refund process more quickly, while applications showing indicators of potential fraud will remain subject to additional checks.

Authorities are also developing tools for tracing invoice chains and expanding controls from the invoice issuance and tax declaration stages. Invoice verification between tax authorities is expected to become more targeted and based on system data rather than broad verification requests that can delay compliant refund applications.

For businesses, the quality and consistency of transaction, VAT return and invoice data can therefore influence how a refund application is assessed. The roadmap does not establish new invoice fields or new E-Invoicing obligations, but it shows that invoice data is increasingly being used in VAT refund risk analysis.

Faster processing does not mean that all applications will be refunded automatically. The Tax Department is still processing 1,927 applications requesting VND 34.521 trillion (1,137,812,160 Euro) in refunds. Of these, 245 applications have experienced prolonged processing, mainly because they involve higher-risk cases requiring additional verification.

Tax authorities have stated that measures against the trading and use of illegal invoices will continue, but risk controls should not unnecessarily delay applications that satisfy the refund conditions. Higher-risk cases may require additional information or verification with other authorities before a refund decision is made.

Post-refund controls are also expected to become more important as the share of “refund first, audit later” cases increases. The roadmap therefore combines quicker processing for compliant taxpayers with stronger ex-post supervision intended to identify improper refund claims.

For businesses regularly claiming VAT refunds, particularly exporters and companies with substantial refundable input VAT, the main operational impact is the increasing importance of data quality across VAT declarations, invoices and supporting documentation.

The use of compliance-based risk groups means a company’s wider tax behaviour may increasingly influence how quickly its refund application is processed. Businesses with complete applications and strong compliance records may benefit from faster treatment, while inconsistencies in invoices, declarations or transaction chains could trigger additional review.

ERP, accounting and E-Invoicing processes should therefore support reliable reconciliation between invoice data, VAT returns and refund documentation. The announcement does not impose a new technical configuration requirement on these systems, but businesses should expect tax authorities to rely more heavily on electronic data when assessing refund risk.

What should businesses prepare for?

Businesses claiming VAT refunds should review the completeness and consistency of VAT return, invoice and supporting-document data before filing. Where refunds are important for cash flow, companies should also monitor whether applications are classified under “refund first, audit later” or “audit first, refund later” and respond promptly to requests for additional information.

Companies should follow the rollout of the September fast-track programme, the October pre-filled VAT return support and the automated refund process planned from December. Detailed eligibility and technical rules should be checked as further implementation guidance is published.

From a tax and retail compliance perspective, the main issue is the growing connection between invoice data, compliance history and refund processing. Faster refunds may benefit compliant businesses, but automation will also make inconsistencies across tax and transaction data easier for the authorities to identify. VAT refund preparation should therefore be treated as part of wider data-quality and E-Invoicing controls rather than as an isolated end-of-period procedure.

The main source for the article above is the Circular No. 89/2026/TT-BTC of the Ministry of Finance: Detailing a number of articles of the Law on Tax Administration and Decree No. 252/2026/ND-CP of the Government detailing a number of articles and measures to organize and guide the implementation of the Law on Tax Administration provided by the Ministry of finance. Source

Mirko Bijeljanin, Junior Legal Consultant at Fiscal Solutions

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