Question: Our company sells products and implements a program where some customer groups receive 1 free product of the same kind when they buy 10 products. How should we issue invoices correctly for this, and do we need to register with the trade promotion agency?Answer:Based on Article 5, Clause 7 of Circular No. 219/2013/TT-BTC dated December 31, 2013, of the Ministry of Finance guiding value-added tax (VAT) regulations on calculating VAT.Based on Section 2.4 of Appendix No. 4 issued together with Circular No. 39/2014/TT-BTC dated March 31, 2014, of the Ministry of Finance, which provides guidance on invoices and documents for the sale of goods and supply of services, including regulations on issuing invoices for promotional and gift items.When your company sells products and runs a program where some customer groups receive 1 free product of the same kind when they buy 10 products, if:1. Your company notifies the promotional program to the Department of Industry and Trade or the Ministry of Industry and Trade as required by the Government’s Decree No. 81/2018/NĐ-CP, then when issuing invoices, your company should include the product’s name and quantity, clearly indicating that it is a promotional item or advertising item, and set the unit price to zero (0).2. Your company does not notify the promotional program as required by Decree No. 81/2018/NĐ-CP, then you must declare and pay taxes on these items as if they were regular goods or services used for internal consumption or as gifts.
Regulations on Invoicing for Promotional and Gift Items
