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Value added tax (VAT) advisory services for enterprises

In the context of increasingly stringent and frequently changing tax laws, value added tax (VAT) advisory services play an important role in helping enterprises correctly understand and apply regulations on VAT declaration, input tax deduction, and tax refunds.

In the context of increasingly stringent and frequently changing tax laws, value added tax (VAT) advisory services play an important role in helping enterprises correctly understand and apply regulations on VAT declaration, input tax deduction, and tax refunds.

I. Current situation of VAT advisory services for enterprises

In the context of deep international integration and the diversification of business models, VAT advisory services have become an essential part of financial and tax governance for many organizations. VAT is a common consumption tax applied widely across most economic sectors, which makes VAT declaration, refunds, and compliance more complex, especially for enterprises engaged in cross-border trade, digital services, multi-sector business activities, or related-party transactions.

In practice, many enterprises still have difficulties in correctly identifying VAT regulations, leading to errors in tax declaration, revenue classification, recognition of input and output VAT, or application of incorrect tax rates. These errors not only affect tax obligations but also expose businesses to risks of tax audits, inspections, tax arrears collection, and administrative sanctions by the tax authorities.

In addition, the continuous updates of regulations, especially in the context of digital transformation and the expansion of e-commerce, create an urgent need for in-depth and up-to-date VAT advisory services. Many enterprises are now seeking support from tax experts, chief accountants, and tax advisory firms to receive detailed guidance on designing accounting and tax systems, preparing VAT refund dossiers, handling tax exemptions and reductions in accordance with regulations, and preventing legal risks related to VAT.

However, the current situation of internal tax advisory human resources in many enterprises remains limited, leading to heavy dependence on external consultants. It creates challenges in terms of cost, advisory quality, and response time when enterprises encounter complex tax issues. Moreover, differences among consultants in experience, approaches, and depth of tax law knowledge also require enterprises to carefully consider the selection of suitable advisory partners.

Overall, the current status of VAT advisory services for enterprises reflects both urgent demand and practical difficulties in tax compliance, requiring enterprises to proactively work with competent tax professionals to lawfully and effectively optimize their tax obligations.

II. Concept of VAT advisory services for enterprises

In the context of an increasingly comprehensive and specialized tax legal system, VAT advisory services for enterprises go beyond tax filing guidance and play a role in supporting risk management, legal compliance, and financial optimization. To better understand, it is necessary to examine the concept, target users, and practical role of VAT advisory services.

1. What are VAT advisory services for enterprises?

According to Article 2 of the Law on Value Added Tax 2024, value added tax is a tax imposed on the added value of goods and services arising throughout the process from production and circulation to consumption.

VAT advisory services for enterprises refer to the provision of professional opinions, guidance, and legal–financial solutions related to the application of VAT regulations in business operations. Advisory content may include identifying taxable subjects, applicable tax rates, tax calculation methods, VAT declaration, deduction and refund procedures, as well as handling situations arising from tax audits and inspections.

2. Which businesses typically need VAT advisory services?

In practice, most enterprises have some level of demand for VAT advisory services; however, demand is particularly high among the following groups:

Newly established enterprises that do not yet have a stable accounting and tax system;
Enterprises operating in multiple sectors with complex transactions or frequent changes in business models;
Enterprises involved in import–export, e-commerce, and cross-border services;
Enterprises that frequently apply for VAT refunds or take high risks of tax audits and inspections.

For these enterprises, VAT advisory services help minimize risks and ensure legal compliance from the outset.

3. The role of VAT advisory services in financial and tax governance

VAT advisory services play an important role in financial and tax governance in the following aspects:

Ensuring legal compliance: Assisting enterprises in properly declaring, paying, and refunding VAT;
Preventing legal and financial risks: Minimizing errors that may lead to tax arrears, late payment fines, or administrative sanctions;
Lawful tax optimization: Advising on appropriate tax rate application and lawful input VAT deductions;
Supporting business decisions: Providing legal and tax perspectives when enterprises implement projects, sign contracts, or expand operations.

It can be seen that VAT advisory services for enterprises are not merely technical tax activities but also governance tools that enhance transparency and operational efficiency.

III. Legal regulations governing VAT advisory services for enterprises

To ensure VAT advisory activities are conducted properly and effectively, a thorough understanding of current legal regulations is essential. Vietnam’s VAT legal framework is relatively comprehensive, governing taxable subjects, tax calculation methods, VAT declaration, payment, and refunds, thereby providing an important legal basis for enterprises and tax advisors.

1. Main legal instruments governing VAT implementation

Currently, VAT implementation for enterprises is mainly governed by the following legal instruments:

Law on Value Added Tax 2024 (amended in 2025);
Law on Tax Administration 2019 (amended in 2025);
Decree No. 181/2025/ND-CP guiding the Law on Value Added Tax;
Decree No. 359/2025/ND-CP amending Decree No. 181/2025/ND-CP;
Decree No. 117/2025/ND-CP regulating tax administration for e-commerce and digital platform business activities;
Circular No. 69/2025/TT-BTC guiding the Law on Value Added Tax and Decree No. 181/2025/ND-CP.

These are the core legal bases that enterprises and VAT advisory service providers need to regularly update and apply.

2. Regulations on VAT declaration, payment, and finalization

Under Decree No. 181/2025/ND-CP and the Law on Value Added Tax 2024, enterprises and individuals engaged in VAT-taxable activities are required to declare and pay VAT in cases including:

Enterprises , households, and individuals producing and trading in VAT-taxable goods and services;
Importers of VAT-taxable goods;
Organizations and individuals in Vietnam purchasing services from foreign suppliers without permanent establishments in Vietnam;
Foreign suppliers providing e-commerce or digital platform services to Vietnamese organizations and individuals;
E-commerce platforms and digital platform operators with payment functions responsible for withholding and paying VAT on behalf of foreign suppliers.

Regarding VAT finalization, VAT is generally subject to deduction and refund mechanisms. VAT finalization is applied in special cases such as upon the completion of foreign contractor contracts, in accordance with Decree No. 126/2020/ND-CP.

3. In which cases are enterprises entitled to a VAT refund under the law?

Pursuant to Article 15 of the Law on Value-Added Tax 2024, as guided by Section 3, Chapter III of Decree No. 181/2025/ND-CP and amended by Clause 2, Article 1 of Decree No. 359/2025/ND-CP, an enterprise is entitled to a VAT refund when it falls into one of the following cases and fully satisfies the statutory conditions:

First, VAT refunds for exported goods and services. If an enterprise conducts export activities in a tax period and, after offsetting against VAT payable on domestic sales, the remaining uncredited input VAT amounts to 300 million VND or more, it is entitled to a VAT refund on a monthly or quarterly basis.
Second, VAT refunds in respect of investment projects. An enterprise applying the credit method that has a new investment project or an expanded investment project during the investment phase is entitled to a VAT refund if, after offsetting, the remaining input VAT is 300 million VND or more, except for cases where refunds are prohibited by law.
Third, VAT refunds for enterprises applying the 5% VAT rate. If an enterprise exclusively produces and trades in goods and services subject to the 5% VAT rate and, after 12 consecutive months or four consecutive quarters, the remaining uncredited input VAT is 300 million VND or more, it is entitled to a VAT refund.
Fourth, VAT refunds upon dissolution or bankruptcy. An enterprise applying the credit method is entitled to a refund of overpaid VAT or VAT not yet fully credited at the time of dissolution or bankruptcy.
Fifth, VAT refunds pursuant to decisions of competent state authorities or international treaties. An enterprise is entitled to a VAT refund in accordance with decisions of competent authorities or pursuant to international treaties to which Viet Nam is a contracting party.

Accordingly, VAT refunds are only granted in specific statutory circumstances and are strictly conditional upon the enterprise’s full compliance with the prescribed requirements regarding the tax declaration method, supporting documents, and fulfillment of tax obligations.

4. How are the procedures for VAT refunds for enterprises prescribed by law?

- Preparation of the VAT refund dossier:

The dossier for requesting a VAT refund is specifically guided in Articles 28 and 31 of Circular No. 80/2021/TT-BTC.

- Submission and processing of VAT refund dossiers:

Pursuant to Clauses 1 and 2, Article 32 of Circular No. 80/2021/TT-BTC, the procedures for VAT refunds applicable to enterprises are as follows:

(i) Request for VAT refund by electronic dossier:

The taxpayer submits an electronic VAT refund application dossier via the General Department of Taxation’s electronic information portal or other electronic portals in accordance with regulations on electronic transactions in the tax sector.
The receipt of the electronic VAT refund application dossier is conducted in accordance with regulations on electronic transactions in the tax sector.
Within three (03) working days from the date stated in the Notice of receipt of the VAT refund application dossier, the tax authority shall process the refund application and issue a Notice of acceptance of the VAT refund application dossier, or a Notice of refusal to grant a VAT refund in cases where the dossier does not fall within refund-eligible cases, via the General Department of Taxation’s electronic information portal or other electronic portals where the taxpayer submitted the application.

(ii) Request for VAT refund by paper dossier:

If the taxpayer submits a paper VAT refund application dossier directly to the tax authority, the tax officer shall examine the completeness of the dossier in accordance with regulations. If the dossier is incomplete, the taxpayer shall be requested to supplement it in accordance with regulations. If the dossier is complete, the tax officer shall issue a Notice of receipt to the taxpayer and record the receipt in the tax administration system.
If the taxpayer submits the dossier by post, the tax officer shall affix the receipt stamp, record the date of receipt, and enter the dossier into the tax administration system.
Within three (03) working days from the date of receipt of the VAT refund application dossier, the tax authority shall issue a Notice of acceptance of the VAT refund application dossier; or a Notice that the dossier is procedurally invalid in the case of dossiers submitted by post; or a Notice of refusal to grant a VAT refund where the applicant does not fall within refund-eligible cases.

IV. Questions on VAT advisory services for enterprises

1. Is it mandatory for businesses to use VAT advisory services?

The law does not require enterprises to use VAT advisory services. However, for enterprises with complex operations (import–export, project investment, VAT refunds, related-party transactions), advisory services are highly recommended to reduce risks of declaration and refund errors.

2. How long does VAT advisory usually take?

Depending on scope and complexity:

Periodic reviews: From a few days to 1–2 weeks;
In-depth advisory (refunds, tax audits/inspections): From several weeks to several months.

3. Are VAT advisory services suitable for FDI enterprises?

FDI enterprises are subject to both Vietnamese tax law and international tax treaties. VAT advisory services help ensure correct tax rate application, deduction/refund eligibility, and proper handling of cross-border transactions.

4. Do VAT advisors take legal liability for their advice?

Advisors are liable according to service contracts. If incorrect advice causes damage, enterprises may claim compensation under civil law. However, ultimate tax obligations remain with the business.

5. Can VAT advisory services help reduce risks of tax arrears and penalties?

Proper and timely advisory helps ensure accurate declarations, correct tax rates, and compliance with deduction/refund conditions, thereby reducing risks of tax arrears, late payment interest, and administrative fines.

V. Why choose NPLaw for VAT advisory services?

NPLaw has a team of experienced lawyers and tax experts with in-depth knowledge of tax law and practical experience working with tax authorities. With comprehensive advisory services ranging from VAT declaration, deduction, refunds to handling tax disputes, NPLaw helps enterprises ensure legal compliance, optimize tax costs, and protect legitimate rights and interests effectively.