The deducted input value-added tax is the basis for calculating the payable value-added tax. Below are the conditions for deduction of input value added tax this year.
- Circular 219/2013/TT-BTC
- Circular 119/2014/TT-BTC
- Circular 26/2015/TT-BTC
- Circular 173/2016/TT-BTC
According to Article 15 of Circular 219/2013/TT-BTC (amended by Clause 10, Article 1 of Circular 26/2015/TT-BTC), the conditions for withholding input value-added tax (VAT) are regulated as follows:
1 – Having a legal VAT invoice or proof of VAT payment at the import stage or proof of VAT payment
Enterprises and other business establishments in order to be eligible for input VAT credit must have: A lawful VAT invoice of purchased goods or services or a receipt for payment of VAT at the stage of importation or a receipt for payment of VAT on behalf of the company. foreign parties under the guidance of the Ministry of Finance applicable to foreign organizations without Vietnamese legal status and foreign individuals doing business or earning income in Vietnam.
2 – Have a non-cash payment voucher of VND 20 million or more
- Having a non-cash payment voucher for purchased goods and services (including imported goods) of VND 20 million or more, except for the following cases:
+ The value of goods and services imported each time is less than 20 million VND, goods and services purchased each time according to the invoice are less than 20 million VND at the price inclusive of VAT;
+ Business establishments importing goods as gifts or gifts of organizations and individuals abroad.
- Non-cash payment vouchers include: Bank payment vouchers and other non-cash payment documents, specifically:
2.1. Proof of payment via bank
According to Clause 3, Article 15 of Circular 219/2013/TT-BTC (amended by point b, Clause 6, Article 3 of Circular 119/2014/TT-BTC and Article 1 of Circular 173/2016/TT-BTC) payment documents via the bank is regulated as follows:
- Payment documents via bank are understood as having documents proving the transfer of money from the buyer’s account to the seller’s account opened at payment service providers in accordance with the forms of payment in accordance with the law. current regulations such as:
+ Payment authorization or payment order;
+ Authorization for collection;
+ Thanks for collection;
+ Bank card;
+ Credit cards;
+ Sim phone (e-wallet);
+ Other forms of payment as prescribed (including the case where the buyer pays from the buyer’s account to the seller’s account in the name of the private business owner or the buyer pays from the buyer’s account with private business owner’s name to the seller’s account).
- Documents of the buyer’s cash payment to the seller’s account or payment documents in a form inconsistent with current laws are not eligible for VAT deduction for goods and services. buy from 20 million or more. –
- Goods and services purchased each time according to the invoice from 20 million VND or more according to the VAT-inclusive price.
For goods and services purchased with deferred payment or installment payment with a value of 20 million VND or more, business establishments shall base themselves on the written goods and service purchase contracts, invoices and receipts. VAT and documents of payment via bank of goods and services purchased with deferred payment or installment payment to declare and deduct input VAT.
In case there is no proof of payment via bank because it is not yet the time of payment according to the contract, the business establishment is still entitled to declare and deduct input VAT.
In case when making payment, the business establishment does not have a bank payment voucher, the business establishment must declare and reduce the deducted VAT amount for the value of goods and services not have proof of payment via bank in the tax period in which the payment in cash arises.
2.2. Other non-cash payment vouchers
Other cases of non-cash payment to deduct input VAT include:
In case of goods or services purchased by the clearing method between the value of purchased goods and services and the value of sold or borrowed goods or services, this payment method is specified in Clause 1 of this Article. In the contract, there must be:
+ Data comparison minutes;
+ Confirmation between the two parties on the clearing between purchased goods and services and sold or borrowed goods and services.
In case of clearing debts through a third party, there must be a record of clearing debts of 3 parties as a basis for tax deduction.
- In case of goods and services purchased by the debt clearing method such as: Borrowing, borrowing money; clearing debts through a third party, which is specified in the contract, must have:
+ Contracts for borrowing and borrowing money in the form of previously made documents;
+ Documents of money transfer from the lender’s account to the borrower’s account for cash loans.
- In case the purchased goods and services are authorized to be paid through a third party and paid through a bank, the payment by authorization or payment to the third party as designated by the seller must be specified in the contract. contract in written form and the third party is a legal or natural person operating in accordance with the law.
In case, after making the above payment methods, but the remaining value is paid in cash with a value of 20 million VND or more, tax will be deducted only if there is a payment voucher through the bank. row.
- In case the purchased goods and services are paid via bank to a third party’s account opened at the State Treasury for enforcement by collecting money and assets held by other organizations or individuals, If kept, the input VAT is also deducted.
- In case of buying goods and services from one supplier with a value of less than 20 million VND but buying many times in the same day with a total value of 20 million VND or more, only tax deductions are allowed for cases where there is a tax deduction. proof of payment via bank. Supplier is a taxpayer with a tax identification number, and directly declares and pays VAT.
- In case the taxpayer is a business establishment with stores that are dependent units using the same tax code and invoice form of the business establishment, the invoice has the heading “Digital store” to distinguish separate the shops of the business establishment and have the hang stamp of each store, each store is a supplier.