On June 27, 2023, the Tax Department of Bac Ninh province issued Official Letter No. 2424/CTBNI-TTHT, according to which:
In case the Company has imported goods from foreign suppliers, has declared the import declaration with the Customs and paid VAT on imported goods and import tax according to regulations. The Company has made the payment of the debt, but due to the Company’s difficult situation, it has applied for an extension of the payment term, which the supplier has agreed upon. Up to now, the Company has not been able to contact the supplier for payment, so it has issued a written decision to record a non-payment of the debt and at the same time to record as other income:
- Regarding deductible expenses when determining CIT taxable income: The cost of raw materials corresponds to the value of unpaid goods to foreign suppliers, if used to produce finished products, the Company is charged included in the deductible expenses when determining the taxable income if it meets the provisions of Article 4 of the Circular No. 96/2015/TT-BTC dated June 22, 2015, of the Ministry of Finance.
- Regarding VAT deduction: If the amount payable to suppliers for each time imported goods is valued at VND 20 million or more, if not paid, the Company shall declare and reduce the amount of VAT already declared deductions according to regulations.
