The Vietnam Ministry of Finance has released an official update on the progress of VAT refund processing for wood and rubber exporters from January 1, 2022, to May 17, 2023. The ministry emphasized that tax authorities are accelerating refund settlements to ease financial burdens for businesses in these sectors.
61 Refund Applications Processed
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Regarding VAT refunds for wood and wood products, the ministry reported that 61 refund cases have been successfully processed, totaling VND 163.34 billion.
Additionally:
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13 applications (worth VND 67.59 billion) were withdrawn by enterprises after self-reviewing and identifying errors or missing documentation.
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3 cases (worth VND 2.71 billion) were rejected due to incorrect or incomplete submissions, as determined by the tax authorities.
As of May 17, 2023, there remain 28 pending refund applications valued at VND 110.33 billion — equivalent to 45.9% of all processed cases.
Reasons for delay include:
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Cases still within the legal review timeframe;
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Files transferred to the police for investigation;
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Enterprises requesting to suspend or postpone inspections;
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Incomplete documentation or missing verification results.
Extensive Verification of Intermediary Companies
During the review, the General Department of Taxation (GDT) conducted extensive verification of intermediate suppliers (F1, F2) in the refund chain.
Out of 58 verified cases:
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50 cases involved verification of F1 intermediaries (86% of total);
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8 cases extended to F2 intermediaries (14%).
The verification uncovered 48 intermediary firms that had ceased operations or disappeared, prompting referrals to the Ministry of Public Security for investigation.
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30 F1 companies suspended operations
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13 F1 companies left their registered business addresses
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4 F2 companies suspended operations
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1 F2 company left its business address
A data review in Ho Chi Minh City found 1,105 enterprises dealing in wood and wood products that either ceased operations or left their registered addresses, accounting for 14.5% of all such enterprises nationwide.
Notably, 22 companies are linked to ongoing criminal investigations for illegal invoice trading.
Efforts to Accelerate VAT Refunds for Rubber Exporters
For the rubber sector, the ministry acknowledged that several refund applications remain under review, mainly due to ongoing verification of foreign transactions and input purchase costs.
Between 2022 and May 2023, the HCMC Tax Department transferred three refund cases to the police for investigation, including two involving rubber exporters, due to purchases from high-risk suppliers.
To expedite legitimate refunds, the Prime Minister issued Directive No. 470/CĐ-TTg (May 26, 2023), urging agencies to remove bottlenecks in VAT refunds. In response, the General Department of Taxation released Official Dispatch No. 2099/TCT-KK (May 26, 2023) directing local tax authorities to fast-track VAT refunds for eligible enterprises while maintaining compliance and transparency.
Commitment to Transparency and Compliance
Going forward, the Ministry of Finance and the GDT will continue to:
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Instruct tax departments to promptly refund VAT to businesses with complete and valid documentation.
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Handle non-compliant or fraudulent claims strictly according to law.
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Ensure transparency and fairness in all refund decisions to restore confidence among legitimate exporters.