Transactions of 5 million VND or more must be transferred to be deducted VAT.

That is the content stated in Decree No. 181 detailing the implementation of a number of articles of the Law on Value Added Tax (VAT) issued by the Government.

Only transactions of 5 million VND or more made via bank transfer are eligible for tax deduction - Photo: NGOC TRAM

Accordingly, the conditions for deduction are as follows: value added tax Input VAT means that businesses must have VAT invoices for purchased goods and services or VAT payment documents at the import stage; or VAT payment documents on behalf of foreign parties as stipulated by the VAT Law.

In addition, businesses must have non-cash payment documents for purchased goods and services (including imported goods) worth 5 million VND or more, including VAT. This is proof of non-cash payment as stipulated by the Government .

In cases where a non-cash payment is made, and the remaining amount is paid in cash of 5 million VND or more, tax deductions are only allowed if there is documentation of the non-cash payment.

For goods and services purchased on deferred payment or installment plans with a value of 5 million VND or more, businesses shall base their tax deductions on the contract, VAT invoice, and non-cash payment documents.

Even if payment documents are not yet available because the payment deadline stipulated in the contract has not arrived, the business is still entitled to deduct input VAT.

If, at the time of payment, the business has non-cash payment documentation, it must declare and adjust the deductible tax amount downwards for the value of goods and services without non-cash payment documentation in the tax period in which the payment obligation arises according to the contract.

For goods and services For individual imports valued at less than 5 million VND, or goods and services purchased with invoices under 5 million VND including VAT; and for imported goods that are gifts, presents, or samples from foreign organizations or individuals, no non-cash payment documents are required.

Furthermore, for goods and services purchased by a taxpayer with a value under 5 million VND but made multiple times on the same day with a total value of 5 million VND or more, tax deductions are only allowed if there is non-cash payment documentation.

According to a government decree, input VAT on goods and services used for production and business will be fully deductible, including input VAT on goods and services that are lost or damaged due to natural causes.

Source: https://baoquangninh.vn/giao-dich-tu-5-trieu-dong-tro-len-phai-chuyen-khoan-moi-duoc-khau-tru-thue-vat-3365015.html