What are non-cash payment documents?

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To calculate input value added tax or add to tax deductible expenses, expenses for the purchase of goods or services with a value equal to or greater than VND 20 million (price including VAT) per invoice with non-cash payment documents.

What are non-cash payment documents?

Non-cash payment vouchers are those documents that record the expenditure for the purchase of goods or services in accordance with the provisions of the tax law by other means, but not in cash, such other means may be check , payment order, commission order, bank cards.

According to Clause 10, Article 1, Circular 26/2015/TT-BTC and Article 4, Circular No. 96/2015/TT-BTC, non-cash payment documents are the basis for input VAT credit and must be included in the expense deduction when determining income subject to corporation tax, in particular:

Input VAT credit conditions: One of the conditions is to have documents on non-cash payments for purchased goods or services (including imported goods) worth VND 20 million or more.

With the exception of imported goods or services with a value of less than 20,000,000 VND on each import; purchased goods or services with a value of less than 20,000,000 VND according to the tax-inclusive prices listed on their invoices for each purchase; and imports being donations from foreign organizations and individuals.

Note: When the value of goods or services purchased from a single vendor or vendor is less than VND20 million, but the value of multiple purchases made on the same day is VND20 million or more, the tax can only be credited if payment documents via a bank are available. The supplier or service provider is the taxpayer who has a tax identification number and who must directly declare and pay the VAT

In the event that the taxpayer is a commercial establishment with dependent stores that use the same tax identification number and the same invoice form as the commercial establishment, if the invoice includes the element “Cua hang so:” (” Store No”) to differentiate the stores from the commercial establishment, and bears the seal of each store, then each store is considered a supplier.

Define deductible and non-deductible expenses when determining taxable income: Expenses for the purchase of goods or services with a value equal to or greater than VND 20 million (price including tax) per invoice with non-cash payment documents.

What are non-cash payment documents? (Drawing)

Types of non-cash payment documents

In accordance with Clause 10, Article 1, Circular No. 26/2015/TT-BTC and Circular No. 173/2016/TT-BTC, documents on non-cash payments include documents on payments via banks and other documents on non-cash payments. payments, in particular:

* Documents on via-bank payments

The via-bank payment document is interpreted as a document proving the transfer of money from the buyer’s account to the seller’s account opened with payment service providers in lawful forms of payment.

Documents on payments through a bank include:
– Cheques, payment orders, collection orders, bank cards, credit cards, SIM cards (digital wallets).
– Other prescribed payment methods (including the case where the buyer transfers money from the buyer’s account to the seller’s account in the name of the owner of a private company or from the buyer’s account in the name of the owner from a private company to the account of the seller if these accounts have been registered with the tax authorities).

What are non-cash payment documents?

* Other non-payment documents

Other non-cash payment cases eligible for input VAT credit include:

(1) If goods or services are purchased by offsetting their value against the value of the goods or services sold, or by borrowing goods.
This method must satisfy the following conditions:
– This method of payment is specified in the contracts.
– There must be a written record of the data comparison and certification of the set-off or borrowing of goods by both parties.
If the payment is offset against the debt of a third party, there must be a written record of the offsetting of the debt made by all three parties to serve as the basis for the VAT credit;

(2) If goods or services are purchased by set-off of debts, for example by borrowing loans or by set-off of debts via a third party.

This method must satisfy the following conditions:
– This method of payment is specified in the contracts.
– There must be a written loan agreement and a document on the transfer.
– Have a document on the transfer of money from the creditor’s account to the debtor’s account, even in the case of offsetting the value of the goods or services purchased with the amount of money paid by the seller as support to the buyer , or paid by the buyer on behalf of others

(3) If authorized payment through a bank is made for goods or services purchased through a third party (including where Seller instructs Buyer to make payment through a bank to a third party designated by Seller).
Must meet the following conditions:
– This authorized payment or payment to a third party designated by the seller must be specified in the written contract.
– The third party must be a legal person or a natural person acting legally.
Note: After payment is made in the above forms, if the remaining value paid in cash is VND 20 million or more, the tax will only be credited if there is a payment document through a bank;

(4) If payment for goods or services purchased is made through a bank to a third party’s account in the Treasury, which is opened to enforce the collection of money and assets currently held by other organizations and individuals (on decision of a competent public body).

This case can be credited with input VAT.

Here is non-cash payment document regulations.

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