On July 25, 2025, Tax Authority Branch 3 of Dong Nai Province issued Official Letter 1810/TCS3-QLDN1, providing guidance on non-cash payment authorization according to Decree 181/2025/ND-CP. This document is essential for businesses in the logistics sector to ensure legal input VAT deduction.
1. Legal Basis
- Article 14 of the 2024 VAT Law: Regulations on input VAT deduction.
- Articles 25 & 26 of Decree 181/2025/ND-CP: Guidance on invoices, documents, and non-cash payments via a third party.
Article 4 of Circular 96/2015/TT-BTC (amending and supplementing Article 6 of Circular 78/2014/TT-BTC): Determining deductible expenses when calculating corporate income tax (CIT) taxable income. - Article 283 of the 2015 Civil Code: Regulations on performing obligations through a third party.
2. Regulations on Third-Party Payment Authorization
- Purchased goods and services can be paid via a third party without cash.
- If the seller requests the buyer to pay through a third party, the authorization must be clearly stated in the contract and approved by the seller.
- The third party cannot re-authorize to another party.
3. Conditions for Input VAT Deduction
Businesses are eligible to deduct input VAT if they meet the following conditions:
- Have VAT invoices or tax payment documents on behalf of foreign parties.
- Have non-cash payment documents for transactions of VND 5 million or more, including VAT.
- Expenses are actually incurred for production and business activities and have full, legal invoices and documents.
4. Implementation in Logistic Activities
For companies providing logistics services and paying on behalf of clients for container handling at ports under authorization:
- Non-cash payment documents meet conditions for input VAT deduction.
- Payment authorization must be clearly stated in the contract and approved by the seller.
- The company acting as a third party cannot re-authorize.
- Eligible expenses for business operations are recognized for CIT taxable income calculation.
5. Recommendations for Businesses
- Ensure contracts and payment documents are complete and transparent for VAT deduction.
- Do not re-authorize payments to another third party.
- Record expenses properly to optimize corporate income tax.
With Official Letter 1810, logistics businesses can legally implement authorized payments and deduct input VAT if they comply with contracts, documents, and regulations.
For detailed consultation, please contact TPM via the website or hotline (+84) 28 3505 1800 for prompt support.
