Official Letter No. 286/CCTKV.XVI-QLDN4-TNI dated April 17, 2025, issued by the Regional Tax Sub-Department XVI, regarding non-cash payment methods

To be eligible for input VAT (Value Added Tax) deduction, enterprises must meet the following conditions: Valid invoices and documents, including legitimate VAT invoices for purchased goods or services, or documents proving payment of VAT at the import stage or payment on behalf of a foreign party (as guided by the Ministry of Finance).

Non-cash payment is required (applicable to invoices of VND 20 million or more, including imported goods). Exceptions include: Imported goods or services with each transaction valued under VND 20 million, invoices under VND 20 million (VAT inclusive), or goods received as gifts or donations from abroad.

Other forms of non-cash payment eligible for input VAT deduction include: In cases where goods or services are purchased through a method of offsetting the value of purchased goods/services against sold goods/services or loaned goods, and where this payment method is clearly stated in the contract, a reconciliation record and confirmation from both parties regarding the offsetting of these goods/services must be provided. If the offsetting of debts is conducted via a third party, a three-party debt offsetting agreement must be available as the basis for tax deduction.

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