VAT Deduction for Goods Given as Gifts, Donations, or Presents

12:42, 11/07/2024

On April 14, 2016, the General Department of Taxation issued Official Dispatch 1566/TCT-DNL on tax policies for credit institutions to provide guidance on issues regarding tax policies of commercial banks as follows:

- The deduction of input value-added tax (VAT) for expenses related to ATMs is carried out following one of two cases:

+ Not deducting but calculating it into the original cost of fixed assets;

+ Being deductible expenses according to the Corporate Income Tax (CIT) Law and guiding documents.

- Regarding VAT on goods given as gifts, donations:

+ Must issue invoices and calculate output VAT for goods, products given as gifts, donations;

+ If there is a discrepancy between the output VAT payable and the non-deductible input VAT, it is accounted as deductible expenses when calculating CIT at the controlled rate of 10% (before 2014) and 15% (in 2014).

See the detailed content at Official Dispatch 1566/TCT-DNL.

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