Decree 181/2025/ND-CP was issued, effective from July 1, 2025, to detail the Law on Value Added Tax. One of the highlights is the conditions for deducting input VAT, especially for transactions of VND 5 million or more (including tax).
Tax deduction conditions
On July 1, 2025, the Government issued Decree 181/2025/ND-CP detailing the implementation of a number of articles of the Law on Value Added Tax, which clearly stipulates the conditions for deducting input value added tax.
Article 26 of Decree 181/2025/ND-CP clearly states that to be eligible for input VAT deduction, 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, except for documents in which the buyer deposits cash into the seller's account.
If a business establishment has non-cash payment documents for purchased goods and services worth VND 5 million or more, including value added tax, it will be entitled to input value added tax deduction - Decree 181/2025/ND-CP
Decree 181/2025/ND-CP also clearly stipulates the conditions for deducting input value-added tax for a number of special cases as prescribed in the Law on Value Added Tax 2024.
Firstly, in the case of goods and services purchased by the method of payment offsetting between the value of purchased goods and services and the value of sold goods and services, where the payment method is specifically stipulated in the contract, it is required to have a record of data comparison and confirmation between two or three parties (if there is a third party) regarding the payment offsetting.
Second, in the case of goods and services purchased by debt offset method such as borrowing or lending money, where the payment method is specifically stipulated in the contract, there must be a previously established borrowing or lending contract and documents for transferring money from the lender's account to the borrower's.
Third, in the case of purchased goods and services that are paid for by authorization through a third party that makes non-cash payments, the payment to the third party as designated by the seller must be specifically stipulated in the contract in written form. At the same time, the third party must be a legal organization or individual operating in accordance with the provisions of law.
Fourth, if goods and services are purchased by paying for them with stocks or bonds, there must be a pre-existing written sales contract.
Thus, after applying the forms of compensation, if the remaining amount is worth 5 million VND or more and is paid in cash, it is also required to be paid non-cash.
Fifth, in the case where the buyer makes payment into a third party's account opened at the State Treasury to enforce the collection of money held by another organization or individual, the input value-added tax corresponding to the amount transferred into the third party's account opened at the State Treasury shall be deducted.
Sixth, for purchases on deferred payment 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, the business can still temporarily deduct. However, at the time of payment according to the contract, if the business still does not have non-cash payment documents, it must declare and adjust to reduce the deductible tax amount.
In case the value of imported goods each time is less than 5 million VND or goods purchased as gifts, presents, or samples without payment from abroad, it is not required to have non-cash payment documents.
Meanwhile, 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.
Seventh, if the business authorizes an individual who is an employee to make non-cash payments according to internal financial regulations for goods serving production activities. Then, paying back to the employee will be eligible for tax deduction.
Source: https://baonghean.vn/quy-dinh-moi-khi-mua-hang-tren-5-trieu-phai-chuyen-khoan-moi-duoc-khau-tru-thue-10301477.html
Comment (0)