Paid VAT in the importing process must not get deductible if the buyer has not yet paid the seller when the payment due had already matured

26/06/2021 Newest Editor

On May 21st, 2021, Bac Ninh Tax Department issued Official Letter No. 902/CTBNI-TTHT, whereby:

If the Company imports machinery and equipment from abroad which has been put into production and business operations, and also has made depreciation as regulated, up to the present time these fixed assets are no longer suitable for the production and business activities, the company carries out on the liquidation for the previous foreigner sellers, but the Company has not made full payment for the sellers. If the payment due exceeded as agreed but the Company fails to provide non-cash payment records for the sellers and not subjected to other non-cash payment cases to get deductible for input VAT amount, the paid VAT amount in the importing process shall not meet the conditions for getting VAT deductible.