– In Clause 1, Clause 2, Article 15 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance guiding the implementation of the Law on VAT and Decree No. 20912013/ND-CP dated December 18, 2013 of the Government detailing and guiding the implementation of a number of articles of the Law on VAT providing for conditions for deduction of input VAT:
“1. Legitimate VAT invoices for purchases or receipts for payment of VAT on imported goods…
2. Receipts for non-cash payments for the purchases (including imported goods) that cost 20 million VND or more inclusive of VAT, except for the purchases that cost below 20 million VND inclusive of VAT.
Receipts for non-cash payments include bank transfer receipts and other receipts for non-cash payments prescribed in Clause 3 and Clause 4 of this Article…”
– In Clause 1, Article 6 of Circular No. 78/2014/TT-BTC dated June 18, 2014 guiding the implementation of Decree No. 218/2013/ND-CP dated December 26, 2013 of the Government stipulating and guiding the implementation of the Law on CIT stipulates:
“1. Except for the non-deductible expenses specified in Clause 2 of this Article, all expenses may be deducted if the following conditions are satisfied:
a) Actual expenses incurred are related to the enterprise’s production and business activities;
b) The expenditure has sufficient legal invoices and documents as prescribed by law.
c) If there is an invoice for each purchase of goods or services valued at VND 20 million or more (the price includes VAT), the non-cash payment voucher must be included.
Vouchers of non-cash payments comply with legal documents on value added tax…”:
– According to the provisions at point 8 Clause 2 Article 6 of Circular No. 78/2014/TT-BTC.
Based on the above provisions, enterprises should pay attention to the following cases:
If the enterprise buys air tickets through an e-commerce website for employees to go on a business trip to serve its business and production activities, the documents used as the basis for calculating deductible expenses are the electronic air ticket, boarding pass and non-cash payment voucher of the enterprise with individuals participating in the trip. If the enterprise fails to recover the employee’s boarding pass, the documents used as the basis for calculating the deductible expenses are the electronic air ticket, work dispatch papers and non-cash payment voucher of the enterprise with individuals participating in the trip.
If the enterprise sends employees on a business trip to serve its business and production activities and assigns the individuals to buy air tickets by themselves, pay by ATM card or credit card in their name, then return to the enterprise for reimbursement if the enterprise has sufficient documents and vouchers to prove that this expense is for its production and business activities, including: air tickets, boarding passes (in case pass is recovered), documents related to the dispatch of employees on business trips certified by the enterprise, regulations of the enterprise allowing employees to pay for business trip by personal cards because the employees sent on business trips are the cardholders and be reimbursed by the business, ticket payment voucher of the enterprise for the individual who buys the ticket together with the non-cash payment voucher of the individual participating in the trip, the enterprise may include it in the deductible expenses when calculating CIT. The enterprise is responsible for the legitimacy of the above documents.
If the company/employee buys air tickets directly at air ticket agents for employees to go on a business trip, in service of production and business activities, a legal air freight receipt with the name of the company’s address and tax code is still required, prepared by the air ticketing agents, to be included in the deductible expenses when determining taxable income.