Transactions of 5 million VND or more must be transferred to be deducted VAT.

Transactions of 5 million VND or more made by bank transfer are eligible for tax deduction - Photo: NGOC TRAM

Accordingly, the conditions for deduction value added tax (VAT) input is a business establishment that must have VAT invoices for purchased goods and services or VAT payment documents at the import stage; VAT payment documents on behalf of foreign parties according to the provisions of the Law on VAT.

In addition, businesses must have a non-cash payment document for purchased goods and services (including imported goods) worth VND 5 million or more, including VAT. This is a document proving non-cash payment according to the Government 's regulations on this matter.

In the case that after making a non-cash payment, the remaining value is paid in cash with a value of 5 million VND or more, tax deduction is only allowed in the case of having a non-cash payment document.

For goods and services purchased on deferred or installment payment with a value of 5 million VND or more, business establishments shall base on contracts, VAT invoices, and non-cash payment documents to deduct tax.

If there is no payment document because the payment time according to the contract has not yet arrived, the business establishment is still allowed to deduct input VAT.

If at the time of payment, the business establishment has non-cash payment documents, it must declare and adjust the deductible tax amount for the value of goods and services without non-cash payment documents in the tax period in which the payment obligation arises according to the contract.

For goods and services Imported goods with a value of less than 5 million VND each time, purchased goods and services with an invoice of less than 5 million VND each time with a price including VAT; imported goods that are gifts, presents, or samples that do not require payment from foreign organizations or individuals do not require non-cash payment documents.

In addition, for goods and services of a taxpayer with a value of less than 5 million VND but purchased multiple times on the same day with a total value of 5 million VND or more, tax deduction is only allowed in cases where there is a non-cash payment document.

According to the Government's decree, input VAT of goods and services used for production and business will be fully deducted, including input VAT of goods and services that are naturally lost or damaged.

Source: https://baoquangninh.vn/giao-dich-tu-5-trieu-dong-tro-len-phai-chuyen-khoan-moi-duoc-khau-tru-thue-vat-3365015.html