Are goods and services under 20 million VND required to have non-cash payment documents in Vietnam from July 1, 2025?
Are goods and services under 20 million VND required to have non-cash payment documents in Vietnam from July 1, 2025?
According to current regulations, based on point b, Clause 2, Article 12 of the 2008 Law on Value-Added Tax (amended by Clause 6, Article 1 of the 2013 Law on Amendments to Law on Value-Added Tax) regarding the deduction of input VAT as follows:
Deduction of input value-added tax
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2. Conditions for deducting input value-added tax are specified as follows:
a) There is a value-added invoice for purchasing goods and services or a receipt for paying value-added tax at the importation stage;
b) There is a non-cash payment document for purchasing goods and services, except for single purchases of goods and services valued below twenty million VND;
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However, based on point b, Clause 2, Article 14 of the 2024 Law on Value-Added Tax (effective from July 1, 2025) regarding the deduction of input VAT as follows:
Deduction of input value-added tax
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- Conditions for deducting input value-added tax are specified as follows:
a) There is a value-added invoice for purchasing goods and services or a receipt for paying value-added tax at the importation stage or a receipt for paying value-added tax on behalf of a foreign party as prescribed in Clauses 3 and 4, Article 4 of this Law. The Minister of Finance shall regulate the receipt for paying value-added tax on behalf of a foreign party;
b) There is a non-cash payment document for purchasing goods and services, except for some specific cases as stipulated by the Government of Vietnam;
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Thus, according to current regulations, single purchases of goods and services valued below 20 million VND are not required to have non-cash payment documents for the deduction of value-added tax.
However, from July 1, 2025, when the 2024 Law on Value-Added Tax takes effect, all purchases of goods and services will be required to have non-cash payment documents, except for some specific cases as stipulated by the Government of Vietnam.
Are goods and services under 20 million VND required to have non-cash payment documents in Vietnam from July 1, 2025? (Image from the Internet)
What are supplementary documents for input VAT deduction in Vietnam from July 1, 2025?
In Clause 2, Article 14 of the 2024 Law on Value-Added Tax, conditions for deducting input value-added tax are specified as follows:
- There is a value-added invoice for purchasing goods and services or a receipt for paying value-added tax at the importation stage or a receipt for paying value-added tax on behalf of a foreign party as prescribed in Clauses 3 and 4, Article 4 of the 2024 Law on Value-Added Tax. The Minister of Finance shall regulate the receipt for paying value-added tax on behalf of a foreign party;
- There is a non-cash payment document for purchasing goods and services, except for some specific cases as stipulated by the Government of Vietnam;
- For export goods and services, in addition to the above conditions, there must also be:
+ A signed contract with a foreign party for the sale, processing of goods, or provision of services; an invoice for selling goods or providing services;
+ Non-cash payment documents;
+ Customs declaration for exported goods;
+ Packing list, bill of lading, goods insurance documents (if applicable). The Government of Vietnam regulates the deduction conditions for cases of exporting goods through overseas e-commerce platforms and other specific cases.
Thus, for export goods and services, packing lists, bills of lading, goods insurance documents (if applicable) are required; except for some specific cases as stipulated by the Government of Vietnam, input Value-Added Tax can be deducted. This is a new regulation compared to Clause 2, Article 12 of the 2008 Law on Value-Added Tax (current law).
What acts are prohibited in VAT deduction in Vietnam?
Based on Article 13 of the 2024 Law on Value-Added Tax, the following acts are prohibited in VAT deduction:
(1) Buying, giving, selling, organizing advertising, brokering the purchase, sale of invoices.
(2) Creating fictitious transactions for buying, selling goods, providing services, or transactions not conformable to the law.
(3) Issuing invoices for selling goods, providing services during a business suspension period, except for issuing invoices for contracts signed before the business suspension notification date.
(4) Using illegal invoices, documents, or using invoices, documents illegally according to regulations of the Government of Vietnam.
(5) Not transferring electronic invoice data to the tax authority as required.
(6) Altering, misusing, accessing without permission, destroying information systems regarding invoices, documents.
(7) Giving, receiving, brokering bribes, or engaging in other acts related to invoices, documents to deduct, refund, embezzle, or evade value-added tax.
(8) Conspiring, covering up, or colluding between tax management officials, tax authorities, and business establishments, importers, between business establishments, importers in using illegal invoices, documents to deduct, refund, embezzle, or evade value-added tax.
