Official Letter No. 5487/CT-CS dated 25 November 2025 from the Tax Department regarding VAT policies on input VAT deduction for invoices over VND 5 million with late payment
According to this Official Letter, the Tax Department responds to inquiries from the Bac Ninh Tax Department and the Khanh Hoa Tax Department regarding the deductibility of input VAT on purchase invoices valued at VND 5 million or more that are paid later than the schedule specified in the contract or contract addendum. The guidance is as follows:
- • For deferred or installment payments for goods or services valued at VND 5 million or more: if, at the payment due date specified in the contract or contract addendum, the business establishment fails to provide non-cash payment documents, it must declare and adjust downward the deductible input VAT corresponding to the value of goods or services lacking non-cash payment evidence, in the tax period in which the payment obligation arises under the contract/addendum.
- • If, after making the downward adjustment, the enterprise subsequently obtains non-cash payment documents, it may declare and credit the corresponding input VAT for the value of goods or services supported by such non-cash payment evidence, in accordance with the regulations.
The legal basis cited by the Tax Department for the above guidance includes Article 14(2) of the Value-Added Tax Law No. 48/2024/QH13 and Articles 25 and 26 of Decree No. 181/2025/ND-CP.
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