Phu Quoc wants VAT refund status

PHU QUOC Phu Quoc’s international airport is likely to gain VAT refund status soon following a customs department proposal presented to Vietnam’s Ministry of Finance last week.
The General Department of Vietnam Customs has sent a document to the Ministry of Finance, General Department of Taxation and State Treasury to consider adding Phu Quoc International Airport to the list of international airports eligible to provide VAT (value added tax) refund.
The initial proposal came from the Kien Giang Provincial People’s Committee.
SONY DSCSelecting international airports and seaports for VAT refunds was handed over to Ministry of Finance under a ruling made by the Prime Minister.
Phu Quoc is not among them, but as it develops as popular island resort with ambitions to become a second Phuket in the region, officials want to put in place as many incentives as possible to drive tourism. They have also talked about casinos, theme parks and more up-scale hotels.
Already visitors can enter the island on a visa-free concession. The visa-free list of nationalities apples for trips direct to the island by island or cruise ship.
The VAT refund pays back 85% of the value-added tax imposed on purchases and the remaining 15% is a service fee.
They can only receive a refund for goods worth more than USD94 and purchased within 30 days of their exit date.
Between 1 July 2012 and 2 February 2014, 8,628 foreigners obtained VAT refunds worthUSD1.54 million for more than USD20 million worth of goods they purchased in the Southeast Asian nation, according to the General Department of Vietnam Customs.

sourced:ttrweekly.com