According to the Law on Value Added Tax (VAT) 2024, effective from July 1, to be able to deduct input VAT, businesses are required to have non-cash payment documents, applicable to most transactions for purchasing goods and services.
Specifically, Point b Clause 2 Article 14 of the 2024 Law on VAT clearly stipulates: one of the conditions for deducting input VAT is to have non-cash payment documents for purchased goods and services. This provision applies to all transactions, except for some special cases prescribed by the Government .
From July 1, to deduct VAT, all transactions must be paid without cash.
Speaking to a reporter from Nguoi Lao Dong Newspaper, Mr. Dong Minh Hong, Director of DVL Tax Agent Company Limited, said that previously, transactions under 20 million VND each time were not required to be paid through a bank. However, according to the new Law, even for small transactions under 20 million VND, if a business wants to deduct VAT, it must have a valid invoice and non-cash payment documents/
Mr. Hong said that the new regulation aims to promote electronic payments, while helping tax authorities easily control cash flow in the economy . However, the Government has yet to issue a specific guiding decree, including clarifying the value level from which non-cash payments are required.
In fact, many businesses often buy agricultural products from farmers without VAT invoices. In this case, if a detailed and accurate list is prepared, the tax authority may accept it as a reasonable expense when calculating corporate income tax (CIT).
However, Mr. Hong warned that businesses should not take advantage of this to inflate costs. If they buy large quantities of goods from businesses without invoices and then declare that they are from farmers, the tax authorities will not accept it. Those costs will be excluded from reasonable costs when calculating corporate income tax.
In response to the new requirements of the Law, Mr. Hong recommended that businesses should switch to electronic payment methods such as bank transfers, credit cards or digital payment platforms to ensure conditions for VAT deduction.
Along with that, businesses need to proactively store all invoices and payment documents to avoid risks in case of tax inspection or audit.
Experts expect the tax authorities to soon issue detailed guidance documents to help businesses understand and apply regulations correctly, avoiding unnecessary penalties. Good compliance with regulations also helps businesses ensure tax benefits and transparency in financial activities.
Source: https://nld.com.vn/buying-flowers-under-20-million-dong-must-have-certificates-without-using-tien-mat-196250609134939487.htm
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