Phu Quoc Airport refunds VAT for shoppers

Recently, there is a new decision on refund VAT for foreign shoppers at Phu Quoc Airport. Accordingly, foreigners and Vietnamese oversea people are allowed to reimburse VAT for buying goods in Vietnam at Phu Quoc Airport.

This decision was approval by Deputy Prime Minister Vu Van Ninh on behalf of the Prime Minister for the application of policy on value-added tax at Phu Quoc Airport for goods bought by passengers as foreigners or oversea Vietnamese buyers in Vietnam in immigration. That Phu Quoc Airport refunds VAT will contribute to improving the quality of airport services in particular and the progress amd reform of Vietnam Aviation in general. Phu Quoc Airport exploited the first official international flight Russia - Phu Quoc in February 2014 with the frequency of 4 flights/week. And, there are more international flights continued to open Phu Quoc - Singapore with the frequency of 2 flights, and Phu Quoc - Siem Reap with the frequency of 3 flights per week. Under the direction of the Prime Minister, Phu Quoc tourism will be promoted to develop.

Apart from Phu Quoc International Airport, the policy on VAT refund has been applied at some Vietnam airports such as Noi Bai International Airport and Tan Son Nhat International Airport. After nearly two years of implementation, the number of foreign visitors and the amount of tax refund was completed for foreigners are rising... The implementation of VAT refund to passengers who have contributed to increase in foreign competition goods in the country, increasing the number of tourists to Vietnam, to promote the export of goods of Vietnam abroad, and to promote culture and traditions of Vietnam. Thus, the implementation of VAT refund to passengers at Phu Quoc International Airport will be an important contribution to promoting tourism in Vietnam in general and tourism in Phu Quoc in particular.

Since the beginning of the third quarter in 2014, the list of 5 border gates on the territory of Vietnam was approved VAT refund for foreigners include Da Nang international airport, Cam Ranh International Airport, Khanh Hoi International Port, Da Nang Port, and Nha Trang Port. In the middle of 2015, Phu Quoc International Airport is named in the list of airport applied policy on VAT refund on goods of foreigners and oversea Vietnamese bringing along when immigrating.

Previously, VAT refund for foreign goods brought upon exit through main border gate applies only in a narrow range between Vietnam and neighboring countries importing and exporting over national borders. Thus, the distribution of resources at the main border gate is wasteful and inefficient. Moreover, the current situation of smuggling at borders still generally complexly happens, which easily leads to fraud in refund of VAT and difficulty in management of cargo at the border gate. At the same time, through studying and experiences applied in some countries as Australia or Singapore, VAT refund is not applied to cargoes of foreigners when bring them along through main border gates. Moreover, imports in the form of sale, exchange of border residents are exempted from preferential import duties and other taxes.