Can Input VAT Be Deducted for Goods Given as Gifts or Bonuses?

• Input VAT for goods/services used for taxable activities can be fully deducted.
• If input VAT is used for both taxable and non-taxable activities and cannot be separately accounted, deductible VAT is calculated based on the ratio of taxable revenue to total revenue.
• For goods given as gifts, bonuses to employees, or scrap sales (which are subject to output VAT), input VAT can be deducted if separately accounted.
• If not separately accounted, input VAT deduction is based on the proportion of taxable revenue.
• Animal feed production (non-taxable) input VAT is not deductible except for the above cases.

Source: baochinhphu.vn

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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