Question:
My company is located in District 8 and has two branches in District 1. In January 2019, there were two electricity bills generated for the two branches on the same day, totaling over 20 million VND. I paid them in cash. Can you please clarify whether these two bills can be claimed as deductible and counted as expenses?
Answer:
– Based on Article 5, Article 15 of Circular No. 219/2013/TT-BTC dated December 31, 2013, by the Ministry of Finance (amended and supplemented in Article 10, Article 1 of Circular No. 26/2015/TT-BTC dated February 27, 2015, by the Ministry of Finance) providing guidance on Value Added Tax (VAT) stipulating the conditions for deducting input VAT.
– Based on Article 1, Article 6 of Circular No. 78/2014/TT-BTC dated June 18, 2014, by the Ministry of Finance (amended and supplemented in Article 4 of Circular No. 96/2015/TT-BTC dated June 22, 2015, by the Ministry of Finance) providing guidance on Corporate Income Tax (CIT) stipulating the conditions for counting expenses to be deducted when determining taxable income subject to CIT.
– Based on the regulations mentioned above:
- In the case where the company has two electricity bills for two branches located in the same District 1, with a total payment value exceeding 20 million VND, and if the company makes the payment without using cash, only then does it meet the conditions to declare and deduct input VAT and count it as an expense when determining taxable income subject to CIT.
- In case the above two invoices are not shown on the same date, if the payment value of each invoice is less than 20 million VND, the Company can pay in cash and still have input VAT deducted and included in expenses. deductible when determining taxable income.
