On January 17th, 2022, The Hanoi tax department issued the official letter No 1832/CT-TTHT, accordingly:
In case the Company incurs input VAT on goods and services (including fixed assets) serving the manufacture or sale of both the goods/services that are subject to VAT and goods/services that are not subject to VAT, only VAT on the goods and services serving the manufacture or sale of the goods/services subject to VAT shall be deducted according to the guidance at Point a, Clause 9, Article 1 of Circular No. 26/2015/TT-BTC dated 27 February 2, 2016, of the Ministry of Finance.
The input VAT amount is not deductible, the Company is allowed to record as an expense to calculate CIT or calculate into the historical cost of fixed assets, minus the VAT amount of goods and services purchased each time from twenty million VND or more without receipts for non-cash payments as guided in Clause 9, Article 14 of Circular No. 219/2013/TT-BTC dated December 31, 2013, of the Ministry of Finance.
