From July 1, 2025, Are Goods and Services Below 20 Million VND Required to Have Cashless Payment Documents?

From July 1, 2025, Payment by bank transfer for invoices below 20 million VND is a mandatory condition for VAT deduction.

Businesses need to take note to avoid having expenses excluded during tax declaration and settlement.

Regulations on Invoices Below 20 Million VND Paid by Bank Transfer Under the 2024 VAT Law

According to the amended 2024 Value Added Tax Law, effective from July 1, 2025, the regulations are as follows:

1. All VAT invoices, including those below 20 million VND, must have cashless payment documents to qualify for VAT deduction.

2. Are invoices below 20 million VND paid in cash allowed under the new regulations from July 1, 2025? Payment of invoices below 20 million VND in cash is still permitted, but it will not qualify for VAT deduction.

8 Prohibited Acts in VAT Deduction and Refund – Be Cautious with Invoices Below 20 Million VND

The 2024 Value Added Tax Law also stipulates 8 prohibited acts in VAT deduction and refund, including:

1. Illegal purchase, exchange, or brokerage of invoices.

2. Issuing invoices for fictitious or illegal transactions.

3. Issuing invoices for the sale of goods or provision of services during a business suspension period, except when issuing invoices to customers to fulfill contracts signed before the business suspension notice date.

4. Using illegal invoices or documents, or illegally using invoices or documents as stipulated by the government.

5. Failing to transfer electronic invoice data to the tax authority.

6. Altering, misusing, unauthorized access to, or destroying the information system related to invoices and documents.

7. Offering, accepting, or brokering bribes, or engaging in other acts related to invoices and documents to obtain tax deductions, refunds, misappropriate tax funds, or evade value-added tax.

8. Collusion between tax authorities and businesses to misuse invoices for misappropriating or evading VAT.

What Should Businesses Do?

To ensure tax benefits and comply with regulations:

• Businesses should make payments via bank transfer, e-wallets, or other cashless methods.
• Avoid payments through personal accounts, especially for invoices above 20 million VND.
• Update tax policies promptly to avoid additional assessments or penalties.

Contact VINA TPT for Support

📞 (+84) 984 980 069
📧 vtpt-infor@classlib.net
🌐 https://vietnamtax.net.vn/
🏢 5th Floor, More Building, 83B Hoang Sa, Da Kao Ward, District 1, HCMC