From July 1, 2025, the Government's Decree detailing the implementation of a number of articles of the Law on Value Added Tax will officially take effect. Accordingly, to be deducted input value-added tax (VAT), businesses must have value-added invoices and non-cash payment documents for purchased goods and services from 5 million VND including VAT.
Cashless payment documents are forms of bank transfer, clearing payment, authorization payment or other methods specified in Decree 52/2024/ND-CP on non-cash payment.
In addition, the decree also stipulates some specific cases: Goods and services purchased by the method of compensation payment between the purchase value and the selling value must have a record of comparison confirmed by both parties or three parties (if there is a third party).
In case of borrowing or borrowing money, there must be a loan, loan contract in advance and a transfer document from the lender to the borrower.
If payment through a third party is appointed by the seller, the contract must clearly stipulate this, the third party must be a legal organization or individual.
In case of payment by shares and bonds, there must be a pre-made sales contract.
If after applying the offset methods, the remaining amount is worth VND 5 million or more and is paid in cash, it is also mandatory to pay without cash.
In particular, in case the buyer pays into the account of a third party opened at the State Treasury under the enforcement decision of the state agency, this amount will still be counted as eligible for VAT deduction.
For late payment purchases, installments of VND 5 million or more, businesses need to have contracts, invoices and non-cash payment documents to deduct taxes. If the payment period according to the contract has not yet reached, the deduction will still be made, but when the deadline comes, if there is no non-cash payment document, the deduction tax must be declared and adjusted.
For goods and services purchased multiple times on the same day from the same seller, if the total value is from 5 million VND or more, there must still be non-cash payment documents.
In case the value of each imported goods is from 5 million VND or more or the goods purchased as gifts, gifts, or samples do not have to be paid from abroad, and there is no mandatory need to have non-cash payment documents. In addition, if the enterprise authorizes individuals who are employees to pay non-cash and then re-pay to employees, it will also be considered eligible for tax deduction if clearly regulated in financial or internal regulations.
The new regulation is expected to help tax authorities manage more effectively, reduce budget losses, and make transparent large-value transactions.
