INPUT VAT CREDIT ALLOWED UPON DEFERRED PAYMENT WITH NON CASH PAYMENT EVIDENCE

On 25 November 2025, the Tax Department issued Official Letter 5487/CT CS providing guidance on input VAT creditability for deferred or instalment payments relating to the purchase of goods and services.

The guidance clarifies that if, at the payment due date, the taxpayer does not have valid non cash payment evidence, the taxpayer must reduce the input VAT previously credited. However, when the taxpayer subsequently makes a non cash payment, the corresponding input VAT amount may be credited again in the tax period in which the payment evidence arises.

This provides a clearer legal basis for managing deferred payments and ensures that businesses do not permanently lose their VAT credit entitlement when proper payment documents are provided later in accordance with Decree 181/2025/ND CP.

The full W&A newsletter analyses the legal basis, practical scenarios, and compliance recommendations to help businesses minimize reassessment risks during tax inspections.

👉 Read the full article here:

W&A Newsletter on Input VAT Credit Allowed upon Deferred Payment with Non Cash Payment Evi.

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W&A’s Comprehensive Tax Health Check Service helps enterprises proactively manage tax risks through:

• Review of VAT, CIT, PIT, FCT, and import–export tax declarations;

• Evaluation of input VAT deduction conditions, revenue recognition, and deductible expense timing;

• Identification of compliance risks and preparation of recommendations and corrective actions;

• Assistance in preparing documentation, explanations, and working with tax authorities during audits and inspections.

  
  

With a team of former tax inspectors and Big 4 senior advisors, W&A Consulting delivers independent, confidential, and high-impact solutions — helping businesses ensure compliance, optimize tax efficiency, and maintain audit readiness.