Conditions for input VAT deduction

Hi DMS Law office in Vietnam! Could you advise me conditions for input VAT deduction ?

Hi!

Conditions for input VAT deduction

Have legitimate VAT invoices for purchases or receipts for payment of VAT on imported goods, or receipts for payment of VAT on behalf of foreign entities in accordance with guidelines of the Ministry of Finance applicable to foreign organizations that do not have Vietnamese legal status and foreign individuals that do business or earn income in Vietnam.

Have receipts for non-cash payments for the purchases (including imported goods) that cost VND 20 million or more inclusive of VAT, except for purchases that cost below VND 20 million inclusive of VAT for each time of purchase and for business establishments that import goods which are gifts, donations given by foreign organizations, foreign individuals. Receipts for non-cash payments include bank transfer receipts and other receipts for non-cash payments prescribed in Clause 3 and Clause 4 of this Article.

When multiple purchases bought from the same provider in the same day, each of which costs below VND 20 million but the total aggregate value is VND 20 million or more, tax shall only be deducted if bank transfer receipts are presented. The supplier is a taxpayer that has a tax code, directly declares and pays VAT (Clauses 1, 2, 5 Article 15 Circular No.14/VBHN-BTC dated May 09, 2018).

Related topics:

Differences in tax position of individual investors in Vietnam

Consulting services:

Phone: 0914 165 703 or email: dmslawfirm@gmail.com

Conditions for input VAT deduction