Decree 181/2025: Non-Cash Payment Required for VAT Credit on Purchases Over VND 5 Million

• Decree 181/2025/ND-CP effective July 1 outlines conditions for input VAT credit.
• Purchases of VND 5 million or more must be made via non-cash payment methods.
• Proof of non-cash payment must comply with Decree 52 of 2024.
• Barter or netting transactions require specific contract stipulations and confirmations.
• Debt offsetting transactions need a pre-established loan agreement and fund transfer evidence.
• Payments via an authorized third party must be specified in the contract.
• Payments in stocks or bonds require a prior written trading agreement.
• Remaining balances of VND 5 million or more after offsetting must be paid non-cash.
• Payments into a third party’s State Treasury account for enforcement measures allow VAT credit.
• Deferred or installment purchases require contracts, invoices, and non-cash payment proof.
• Temporary credit is allowed if payment is not due, but proof must be provided by the due date.
• No proof of non-cash payment is needed for imports under VND 5 million or for gifts and samples.

Source: vietnamlawmagazine.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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