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

Transactions of 5 million VND or more that are transferred are eligible for tax deduction - Photo: NGOC TRAM

Accordingly, the conditions for deduction value added tax (VAT) input is a business establishment must have VAT invoice of purchased goods and services or VAT payment document at the import stage; VAT payment document on behalf of foreign parties according to the provisions of the Law on VAT.

In addition, business establishments must have non-cash payment documents for purchased goods and services (including imported goods) worth VND 5 million or more, including VAT. This is a document proving non-cash payment according to the Government 's regulations on this issue.

In case after making a non-cash payment, the remaining value is paid in cash with a value of 5 million VND or more, tax deduction is only allowed in case there is a non-cash payment document.

For goods and services purchased on deferred payment or installment payment with a value of 5 million VND or more, business establishments shall base on contracts, VAT invoices, and non-cash payment documents to deduct tax.

If there is no payment document because the payment time according to the contract has not yet arrived, the business establishment is still allowed to deduct input VAT.

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

For goods, services Imported goods each time with a value of less than 5 million VND, purchased goods and services each time with an invoice of less than 5 million VND at a price including VAT; imported goods that are gifts, presents, and samples that do not require payment from foreign organizations and individuals do not need non-cash payment documents.

In addition, for goods and services of a taxpayer with a value of less than 5 million VND but purchased multiple times on the same day with a total value of 5 million VND or more, tax deduction is only allowed in cases where there is a non-cash payment document.

According to the Government's decree, input VAT of goods and services used for production and business will be fully deducted, including input VAT of goods and services that are naturally lost or damaged.

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