LATE PAYMENT INVALIDATES INPUT VALUE ADDED TAX CREDIT
- phanhoainamba
- Oct 31, 2025
- 1 min read
According to Official Letter No. 3367/TPHCM-QLDNI dated 08 October 2025 issued by the Ho Chi Minh City Tax Department and Article 26 of Decree No. 181/2025/ND-CP, enterprises are entitled to input VAT deduction only when:
There is a valid non-cash payment voucher, and
The payment is made within the deadline stipulated in the contract or its annex.
The Tax Authority has explicitly confirmed that if payment is not made by the contractual due date, the enterprise must reduce the deductible input VAT, and subsequent payment after the deadline will not restore the deduction right.
This reflects the tax authority’s tighter control over the timing and validity of non-cash payments, which directly impacts how businesses manage payables, contracts, and tax documentation.
The latest W&A Newsletter provides detailed analysis of:
The legal basis under Decree 181/2025/ND-CP and Tax Authority guidance;
Common risk scenarios and examples of delayed or installment payments;
Practical measures to safeguard legitimate VAT deduction rights and minimize tax exposure.
👉 Read the full article here:
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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.
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