On July 24th, 2024, the Tax Department of Binh Dinh Province issued Official Letter No. 2661/CTBDI-TTHT, accordingly:
In case the company’s supplier compensates for the goods purchase and sale contract by offsetting the debt between the two parties, then:
This offset is determined as cash compensation. The supplier (the paying entity) does not issue an invoice, only issues a payment document, the company (the receiving entity) issues a receipt under the provisions in Clause 1, Article 5 of Circular No. 219/2013/TT-BTC mentioned above.
Issuing an invoice for this compensation by the supplier is not in compliance with regulations, and the company is not allowed to use this invoice to deduct input VAT.
