Can the VAT on this purchase invoice be credited?
Answer 5 questions about one purchase invoice under Vietnamese VAT rules: the invoice, the amount and how it was paid, what the goods were used for, the seller, and the filing period. Each step says whether it passes, why, and what to do; at the end you get a conclusion and a list of documents to keep. Everything runs on your device - no invoice or tax code is sent anywhere.
Answer each step above - the conclusion appears here.
The result is based on your choices and on general conditions that are settled; it does not replace the tax authority's conclusion in an inspection. Points with more than one interpretation are marked "Common interpretation" - ask your managing tax office or check the documents in force. TaxDatum.com is run by a private company and is not a government website.
Which conditions the tool checks
A business filing VAT under the credit method may deduct the VAT shown on purchase invoices when all the conditions below are met. If one condition is missing, the VAT on that invoice cannot be credited even if the others pass. The current legal framework is VAT Law 48/2024/QH15, effective from 1 July 2025.
A lawful VAT invoice showing the buyer correctly
The basis for credit is the seller's VAT invoice showing the buying company's correct name, address and tax code, verifiable on the e-invoice portal. A sales invoice from a seller paying tax by the direct method has no VAT line, so there is nothing to credit. Errors on an invoice are corrected by the seller under the e-invoice rules; the buyer does not correct them.
Non-cash payment documents for invoices of VND 5 million or more
An invoice with a total payable of VND 5 million or more must have a non-cash payment document. The most certain way is a transfer from an account in the company's name to an account in the seller's name. Paying such an invoice in cash loses the credit for its VAT.
Used for VAT-taxable activities
Inputs used for taxable activities (including exports at 0%) are creditable; inputs used only for non-taxable activities are not. Shared inputs are creditable only for the part attributable to taxable activities, so an allocation table is needed.
The seller and the filing period
The last two steps are not new conditions but common weak spots in inspections: invoices from a seller that was not operating normally on the invoice date are likely to be reviewed; an invoice claimed in the wrong period needs a supplementary return for the period in which it arises.
Where the tool does not conclude
Some situations have more than one interpretation or depend on detailed guidance: deferred or instalment purchases not yet due; debt offsetting or a third party paying on your behalf; e-wallets and intermediary payment gateways; a director's or employee's personal card or account; a missed invoice added to a later period. For these choices the tool shows "Needs more" with a Common interpretation label, lists the documents usually needed, and advises asking the tax authority or checking Decree 181/2025/ND-CP and its amendments - it does not decide whether the credit is allowed.
Three hypothetical cases
1. Buying computers for the accounts team, paid by company bank transfer
Suppose a trading company buys two computers. The VAT invoice shows the company correctly, the total payable is VND 36 million, paid by transfer from the company account to the seller's account. The seller is active and the invoice is claimed in the month it was issued.
Conclusion for this invoice
Meets the basic conditions
Based on your answers, this invoice meets the basic conditions for input VAT credit. Keep the documents below to prove it if asked.
- 1What kind of purchase invoice is it, and how are the buyer details written?
Passed
Your answer: VAT invoice with the correct name, address and tax code of my company
The basis for input VAT credit is a lawful VAT invoice from the seller showing the buyer correctly. This invoice has that.
- 2What is the total amount payable on the invoice (including VAT)?
Passed
Your answer: VND 5 million or more · Bank transfer from the company's account to the seller's account
Money moves through a bank from an account in the buying company's name to an account in the seller's name - the most certain way to meet the non-cash payment document condition.
- 3What are these goods or services used for?
Passed
Your answer: Business activities subject to VAT (including exports at 0%)
Input VAT on goods and services used to produce or trade goods and services subject to VAT is creditable when the other conditions are met.
- 4Was the seller operating normally on the invoice date?
Passed
Your answer: Checked: the seller was active on the invoice date
The seller operating normally when the invoice was issued is a basic condition for a valid invoice. The tax code status does not replace proof that the transaction was real - that comes from the contract, delivery and payment.
- 5In which period was this invoice claimed for credit?
Passed
Your answer: Claimed in the period containing the invoice date
Under the principle of Law 48/2024/QH15, input VAT arising in a period is declared and credited when determining the tax payable for that period.
2. Repairing a delivery van, paid in cash at the garage
Suppose a delivery van breaks down on the road and the driver has it repaired at the nearest garage. The VAT invoice shows the company name correctly, the total payable is VND 7.7 million, and the driver pays in cash and later claims reimbursement.
Conclusion for this invoice
Risk of rejection: invoice of VND 5 million or more paid in cash
The VAT on this invoice has a point that fails the credit conditions or is likely to be rejected when the tax authority cross-checks. See the reason and what to do at each step below.
- 1What kind of purchase invoice is it, and how are the buyer details written?
Passed
Your answer: VAT invoice with the correct name, address and tax code of my company
The basis for input VAT credit is a lawful VAT invoice from the seller showing the buyer correctly. This invoice has that.
- 2What is the total amount payable on the invoice (including VAT)?
Risk of rejection
Your answer: VND 5 million or more · Cash (including cash withdrawn from the company to pay)
An invoice of VND 5 million or more paid in cash has no non-cash payment document under Law 48/2024/QH15, so the VAT on this invoice cannot be credited.
- 3What are these goods or services used for?
Passed
Your answer: Business activities subject to VAT (including exports at 0%)
Input VAT on goods and services used to produce or trade goods and services subject to VAT is creditable when the other conditions are met.
- 4Was the seller operating normally on the invoice date?
Passed
Your answer: Checked: the seller was active on the invoice date
The seller operating normally when the invoice was issued is a basic condition for a valid invoice. The tax code status does not replace proof that the transaction was real - that comes from the contract, delivery and payment.
- 5In which period was this invoice claimed for credit?
Passed
Your answer: Claimed in the period containing the invoice date
Under the principle of Law 48/2024/QH15, input VAT arising in a period is declared and credited when determining the tax payable for that period.
3. Shared office rent, a missed invoice and deferred payment
Suppose a company sells equipment (taxable) and also provides a non-taxable service, and rents one shared office. The February rent invoice went to an employee's mailbox and was only found in June, unclaimed; the contract says payment by transfer within 60 days and the company has not paid yet.
Conclusion for this invoice
Needs more: a bank transfer document when payment falls due; an allocation table for shared inputs; a supplementary return for the period it arises in
Nothing on this invoice fails outright, but there is still work to do or something to confirm before you can claim the credit with confidence.
- 1What kind of purchase invoice is it, and how are the buyer details written?
Passed
Your answer: VAT invoice with the correct name, address and tax code of my company
The basis for input VAT credit is a lawful VAT invoice from the seller showing the buyer correctly. This invoice has that.
- 2What is the total amount payable on the invoice (including VAT)?
Needs moreCommon interpretation - ask the tax authority, check the documents
Your answer: VND 5 million or more · Not paid yet - deferred or instalment purchase; the contract says payment will be by transfer
Common interpretation: the credit may be claimed in the period the invoice arises, based on a contract stating the payment method and due date; if there is no non-cash payment document when payment falls due, the credited VAT must be adjusted down. How this applies in detail should be checked in the current guidance or with the tax authority.
- 3What are these goods or services used for?
Needs more
Your answer: Shared between VAT-taxable and non-taxable activities
Only the VAT attributable to taxable activities is creditable, not the whole amount. The usual method is to allocate by the ratio of taxable revenue to total revenue - the exact calculation and when to recalculate should be checked in the current guidance.
- 4Was the seller operating normally on the invoice date?
Passed
Your answer: Checked: the seller was active on the invoice date
The seller operating normally when the invoice was issued is a basic condition for a valid invoice. The tax code status does not replace proof that the transaction was real - that comes from the contract, delivery and payment.
- 5In which period was this invoice claimed for credit?
Needs more
Your answer: Missed in a period whose return has already been filed
The principle is to file a supplementary return for the period in which the invoice arises, not to add it to the current return. Tax Administration Law 38/2019/QH14 allows supplementary returns when errors are found, before the tax authority announces an on-site inspection or audit decision; input credit conditions follow Law 48/2024/QH15.
Common mistakes
- Splitting one purchase into several invoices under VND 5 million to pay in cash. The common interpretation is that such invoices are added together for assessment, and splitting makes the file look like an attempt to avoid the condition.
- Depositing cash into the seller's account at a bank counter and treating it as a transfer. The money does not come from the company account; under the common interpretation it is still a cash payment.
- Transferring to the account of a salesperson or shop owner when the invoice was issued by a company. If the receiving account holder does not match the seller on the invoice, the document does not prove payment to the seller.
- Crediting all shared input VAT despite having non-taxable revenue. In an inspection, the excess credit is clawed back with late payment interest.
- Adding a missed invoice to the current period's return. The principle is a supplementary return for the period in which it arises; adding it to a later period distorts both periods.
- Checking the seller only once when signing the contract. The status can change midway; for regular suppliers, re-check periodically and keep dated results.
- Letting invoices go to a purchasing employee's personal mailbox. The accountant never receives them and invoices are missed for several periods. Use one shared company address to receive invoices.
Where to check yourself
Whether an invoice is valid and coded or transmitted: the tax authority's e-invoice portal with the company account - download the monthly list of purchase invoices to reconcile with the books. The seller's status: the taxpayer information lookup, or faster, the tax code status check for one code and the bulk check for a list. Filed returns and supplementary returns: the e-tax account or the tax authority's mobile app. Uncertain situations: ask the managing tax office directly - in writing for large amounts.
Questions about input VAT credit
Can VAT be credited on an invoice under VND 5 million paid in cash?
The non-cash payment document condition under Law 48/2024/QH15 applies to invoices of VND 5 million or more. An invoice below the threshold paid in cash is still assessed on the other conditions: a lawful invoice, use for taxable activities, and declaration in the right period. Do not split one purchase into several small invoices to pay in cash - the common interpretation is that such invoices are added together for assessment.
Can I claim the credit on a deferred purchase before paying by transfer?
The common interpretation is that it may be claimed in the period the invoice arises if the contract clearly states payment by transfer and the payment due date; if there is no transfer document when payment falls due, the credited amount is adjusted down. How this applies in detail should be checked in the current guidance or with the tax authority, especially for large amounts.
Can VAT be credited when the director pays a company purchase with a personal card?
This is an uncertain area. The money comes from a personal account, not the company account. The common interpretation only treats it as passing when there is a policy allowing payment on behalf, a reimbursement file and a company transfer repaying that person. Ask the tax authority before claiming large amounts; in the long run use cards in the company's name.
What should I do if I forgot to claim a purchase invoice in an earlier period?
File a supplementary return for the period in which the invoice arises (the period containing the invoice date), with an explanation in the form in force, instead of adding it to the current return. Law 48/2024/QH15 allows supplementary declaration and credit when errors are found before the tax authority announces an on-site inspection or audit decision, so do it as early as possible.
Does the tool store my invoice or the seller's tax code?
No. The steps run in your browser; the server does not receive the invoice number, amounts or tax codes. The tax code box in step 4 only opens the tax code status page. The address bar only records your choices so you can share the same result with someone else.