Expenses that was paid on other party’s behalf before establishing Enterprise shall be declared and deducted
On Apr 17th 2018, Hanoi Department of Tax released the official dispatch No 20057/CT-TTHT. Accordingly, in the pre – establishment period, the capital – contributing members have authorized for a Company, which was a contributing member, to make payment on their behalves for some expenses in relation to the establishment of Enterprise. If the VAT invoice named by Authorized Company and the Enterprise pays to this Company by bank transfer for the invoice with the value from 20.000.000 Vietnamdong, then the input VAT related to those expenses shall be declared and deducted.
In case Enterprise conducts to off – set expenses occurred before establishing with charter capital and this payment is specified in writing, it is required to have enough data reconciliation and confirmation of both parties to be considered as non-cash payment
