Purchase goods from a supplier with a value below 20 million but make multiple purchases in the same day, how to deduct input VAT?
Is it necessary to deduct VAT when the indicator records the buyer’s name as an individual on the automatic toll e-invoice?
Regarding this matter, based on Clause 1, Clause 15, Article 14 of Circular 219/2013/TT-BTC as follows:
Principles of deducting input value-added tax
1. Input VAT on goods and services used for the production and business of goods and services subject to VAT shall be fully deducted, including undeductible input VAT of goods subject to VAT that are lost.
Cases of non-compensated losses for which input VAT is deducted include: natural disasters, fires, uninsured losses, degraded goods, or expired goods that must be disposed of. The business establishment must have complete records and documents proving the cases of uncompensated losses to deduct tax.
In case goods experience natural loss due to physical-chemical properties during transportation, pumping such as gasoline, oil, etc., the actual natural loss amount not exceeding the prescribed loss rate may be declared and deducted. The input VAT for the quantity of goods exceeding the loss rate is not deductible or refundable.
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In case a business establishment has foreign experts working in Vietnam, holding management positions in Vietnam, earning salaries in Vietnam under labor contracts signed with the business establishment in Vietnam, the business establishment is not allowed to deduct VAT for housing costs for these foreign experts.
In case the foreign experts are still employees of a foreign company, under the direction of the foreign company, paid by the foreign company, and enjoy the foreign company’s policies while being in Vietnam, and there is a written contract between the foreign company and the business establishment in Vietnam clearly stating that the business establishment in Vietnam must cover the accommodation costs for foreign experts during their stay in Vietnam, the VAT for housing costs paid by the business establishment in Vietnam is deductible.
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15. Business establishments are not allowed to deduct input VAT in cases where:
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- Invoices do not record or incorrectly record one of the following details: name, address, tax code of the seller, making it impossible to identify the seller;
- Invoices do not record or incorrectly record one of the following details: name, address, tax code of the buyer, making it impossible to identify the buyer (except for the case guided in Clause 12 of this Article);
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Simultaneously, based on Clause 1, Article 15 of Circular 219/2013/TT-BTC (amended and supplemented by Clause 10, Article 1 of Circular 26/2015/TT-BTC) stipulates:
Conditions for deducting input value-added tax
1. Have a legitimate VAT invoice for purchased goods and services, or proof of VAT payment at the importation stage, or proof of VAT payment on behalf of the foreign side as instructed by the Ministry of Finance for foreign organizations without legal status in Vietnam and foreign individuals engaging in business or earning income arising in Vietnam.
Thus, if the buyer’s name indicator on the automatic toll e-invoice does not correctly record the company's name, the company is not eligible to declare and deduct input VAT for that invoice.
How to deduct input VAT when purchasing goods from a supplier with a value under 20 million but buying multiple times in one day?
In what cases is a business establishment not allowed to deduct input VAT?
Based on Clause 15, Article 14 of Circular 219/2013/TT-BTC, a business establishment is not allowed to deduct input VAT in the following cases:
Principles of deducting input value-added tax
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15. Business establishments are not allowed to deduct input VAT in cases where:
- VAT invoices are not compliant with the law, such as: VAT invoices not showing VAT (except for special cases where VAT inclusive invoices are used);
- Invoices do not record or incorrectly record one of the following details: name, address, tax code of the seller, making it impossible to identify the seller;
- Invoices do not record or incorrectly record one of the following details: name, address, tax code of the buyer, making it impossible to identify the buyer (except for the case guided in Clause 12 of this Article);
- Fake VAT invoices, erased invoices, invalid invoices (without accompanying goods or services);
- Invoices recording values not in accordance with the actual value of purchased, sold, or exchanged goods or services.
Thus, a business establishment is not allowed to deduct input VAT when falling into the above-specified cases.
How to deduct input VAT when purchasing goods from a supplier with a value under 20 million but buying multiple times in one day?
Based on Clause 5, Article 15 of Circular 219/2013/TT-BTC (amended and supplemented by Clause 10, Article 1 of Circular 26/2015/TT-BTC) as follows:
Conditions for deducting input value-added tax
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5. In cases where goods or services are purchased from a supplier with a value under twenty million VND, but purchased multiple times in one day with a total value from twenty million VND or more, deduction is only allowed if there is bank payment evidence. The supplier must be a taxpayer with a tax code, directly declaring and paying VAT.
If the taxpayer is a business establishment with affiliated stores using the same tax code and invoice form, the invoice must show the “Store No.” to distinguish the stores of the business establishment and have the stamp of each store, each store is considered a separate supplier.
when purchasing goods or services from a supplier with a value under 20 million VND but buying multiple times in one day with a total value from 20 million VND or more, deduction is only allowed if there is bank payment evidence.
The supplier must be a taxpayer with a tax code, directly declaring and paying VAT.
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