GUIDANCE ON VAT DEDUCTION FOR INSTALLMENT PAYMENTS WITHOUT SUPPORTING DOCUMENTS

Official Letter No. 5487 dated November 25, 2025, the Tax Department responded to the Tax Departments of Khanh Hoa and Bac Ninh, allowing VAT deduction for deferred payments after adjustment, thereby removing obstacles for enterprises caused by a series of prior guidance letters from some local tax authorities. The specific content is as follows:

For deferred or installment payments of goods and services valued at 5 million VND or more, enterprises shall deduct value-added tax (VAT) as follows:

• In cases where, at the time of payment under the contract or contract appendix, the business establishment does not have non-cash payment documents, the business establishment must declare and adjust to reduce the deductible input VAT for the tax period in which the payment obligation arises under the contract or contract appendix;
• In cases where, after declaring and adjusting to reduce the deductible input VAT, the enterprise obtains non-cash payment documents, the enterprise shall declare and deduct VAT for the value of goods and services with non-cash payment documents in accordance with regulations.