Within 24 months from February 12th, 2018 (before February 12th, 2020), current accounts of the aforesaid entities shall be subject to the re-conclusion of their agreements on opening and maintenance of current accounts for the purpose of changing to personal current accounts or legal status current accounts or shared current accounts or close of the accounts.
Accordingly, in case an enterprise exports goods through border, receive the payment made via a current account without certification of customs agency about the money source remitted into such account, VAT shall not be refunded and deducted.
Accordingly, in case the seller which has been dissolved, requests the buyer to make payment for goods to account of a third party. If the third party is not entitled to inherit rights from the seller under regulations of laws and the designation of payment to the third party is not agreed in the sale contract, this case shall not be accepted. The buyer shall not be eligible for deduction and make cost accounting.
Accordingly, if an enterprise purchases goods valued at least VND 20 million or exports goods (regardless of their value) for which payments are made in cash, it is not eligible to make cost accounting and deduct VAT.
Accordingly, in the case an enterprise authorizes its employees to use their individual credit cards to make payments for goods, services, then the enterprise will repay to the employees by transferring money from its account, which has been registered with tax authority, to the employees’ accounts; if this form of payment is specified in the enterprise’s finance regulation or the enterprise’s decision on authorizing the employees to make payments for the goods, services, at the same time, there having adequate documents proving that the such goods, services are used for serving the enterprise’s business and production activities (the invoices bear the enterprise’s name), this form of payment is considered to be non-cash payment as a base for consideration of tax deduction and cost accounting.
The enterprise shall make and monitor a list of accounts of individual credit cards of employers who are authorized to make payment for goods, services in order to provide for the authorities upon the request.
Therefore, enterprises are only required to have via-bank payment documents according to legitimate forms in accordance with current law provisions such as cheque, payment orders, collection orders, banking cards, credit cards, sim card (electronic wallet), the conditions on VAT deduction, VAT refund are met instead of having to transfer money via an account which has been registered with or informed to tax authorities
This Circular takes effect from December 15th, 2016.
Accordingly, in the case a company imports goods (machinery, equipment) from foreign suppliers and authorizes an overseas financial company to make payment for the goods, if the payment made under authorization is indicated the sale contract, the conditions on non cash payment is considered being satisfied in order to deduct and make accounting of expenses
With regard to service charges which are paid to the overseas financial company by the company shall be subject to withholding tax according to the provisions of Circular No. 103/2014/TT-BTC.