According to the new Government Decree, businesses are only allowed to deduct input value-added tax (VAT) if the purchased goods and services cost VND5 million or more and have non-cash payment documents.
Notably, there are regulations on conditions for deducting input value-added tax (VAT) for business establishments. Accordingly, business establishments must have non-cash payment documents for purchased goods and services (including imported goods) of VND 5 million or more, including VAT.
In which, non-cash payment documents are documents proving non-cash payment according to the provisions of Decree 52/2024/ND-CP on non-cash payment, except for documents in which the buyer deposits cash into the seller's account.
According to previous regulations, the threshold for non-cash payments to be deductible for tax purposes was VND 20 million.
The Decree also stipulates a number of special cases where the above provisions do not apply, including: Goods and services purchased by the method of payment offsetting between the purchase value and the sale value must have a confirmation comparison record between two or three parties (if there is a third party).
In case of borrowing or lending money, there must be a pre-established loan or borrowing contract and a transfer document from the lender to the borrower. If payment is made through a third party designated by the seller, the contract must clearly state this, and the third party must be a legal organization or individual.
In case of payment by stocks or bonds, there must be a pre-established sales contract. If after applying the forms of compensation, the remaining amount with a value of 5 million VND or more is paid in cash, it is also required to be paid non-cash.
In case the buyer pays into a third party account opened at the State Treasury according to the enforcement decision of a state agency, this amount is still eligible for VAT deduction.
For purchases made on credit or installments of VND 5 million or more, businesses need to have contracts, invoices and non-cash payment documents to deduct tax. If the payment deadline according to the contract has not yet come, temporary deductions can still be made, but when the deadline comes, if there are no non-cash payment documents, a declaration must be made to reduce the deductible tax amount.
For goods and services purchased multiple times on the same day from the same seller, if the total value is 5 million VND or more, there must still be a non-cash payment document.
In case the value of imported goods each time is from 5 million VND or more or goods purchased as gifts, presents, or free samples from abroad, it is not required to have non-cash payment documents.
In addition, if the enterprise authorizes an individual employee to make a non-cash payment and then pays it back to the employee, it is also eligible for tax deduction if clearly stated in the financial or internal regulations.
Source: https://baohungyen.vn/mua-hang-tren-5-trieu-dong-phai-chuyen-khoan-moi-duoc-khau-tru-thue-vat-3182237.html
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