On October 08th, 2024, the Bac Giang Provincial Tax Department issued Official Letter No. 7097/CTBGI-TTHT, accordingly:
In case the company has idle funds deposited at a commercial bank for a period of 1 to 3 months and generates interest from the deposit. This interest on the deposit is determined as financial income and is not subject to VAT declaration and payment according to the regulations in Article 5 of Circular No. 219/2013/TT-BTC. The input VAT amount on goods and services used for activities of providing goods and services that are not declared and paid for VAT as guided under Article 5 of Circular No. 219/2013/TT-BTC (except for Clauses 2 and 3 of Article 5) is fully deductible. When receiving deposit interest from the Bank, the company is not required to issue invoices for this deposit interest income.
