Deductible Input VAT Excluded From Project Investment Settlement Costs Under Form 01/QTDA
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Based on:193/2026/NĐ-CP - Ministry of Finance
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The Ministry of Finance issued an official response clarifying how deductible input VAT should be reflected in project investment settlement reports prepared on Form 01/QTDA under Decree 193/2026/ND-CP. Under Article 4 and Clause 2, Article 3 of Decree 193/2026/ND-CP, settled investment capital covers all lawful costs incurred within the approved project scope, budget estimate, and signed contracts. Citing Clause 2, Article 9 of Corporate Income Tax Law No. 67/2025/QH15 and Points dd and e, Article 14 of VAT Law No. 48/2024/QH15, the Ministry confirmed that for businesses paying VAT under the deduction method, input VAT that is creditable or has been refunded must NOT be included in the value of fixed assets, investment costs, or deductible expenses for corporate income tax purposes. Because Form 01/QTDA attached to Decree 193/2026/ND-CP has no separate line item for deductible VAT, project owners preparing settlement reports must determine the proposed settled investment capital value excluding any input VAT that is creditable or refundable under tax law. This is an interpretive application of existing law rather than a new rule, but it carries practical significance for project owners and project accountants compiling settlement dossiers.
Background of the question
A reader raised a question about preparing the project investment settlement report on Form 01/QTDA, issued together with Decree 193/2026/ND-CP. Under Article 4 of this decree, settled investment capital is all lawful costs incurred during the investment process, within the approved total investment level. Meanwhile, Point dd, Clause 2, Article 12 and Clause 2, Article 26 of Decree 206/2026/ND-CP state that construction costs and construction consultancy costs both include VAT. Under Circular 99/2025/TT-BTC and VAT Law No. 48/2024/QH15, input VAT that is creditable or refundable must not be included in investment costs used to form the historical cost of assets. However, Article 15 of Decree 193/2026/ND-CP, on reviewing investment costs excluded from asset value, does not mention creditable VAT at all, leaving the reader unsure how this VAT amount should be reflected on Form 01/QTDA.
Legal basis cited by the Ministry of Finance
- Article 4 and Clause 2, Article 3 of Decree No. 193/2026/ND-CP: define settled investment capital and lawful costs.
- Clause 2, Article 9 of Corporate Income Tax Law No. 67/2025/QH15 dated 14 June 2025: deductible and non-deductible expenses for taxable income purposes.
- Points dd and e, Article 14 of VAT Law No. 48/2024/QH15: principles for crediting input VAT.
Content of the official response
The Ministry of Finance confirmed that, in principle, non-creditable input VAT may be included by the business either as a deductible expense for corporate income tax or in the historical cost of fixed assets, except for VAT on goods or services lacking the required non-cash payment documentation. Conversely, if the VAT amount has already been refunded in cash by the state, or already credited against output VAT, it must NOT be included in the value of fixed assets, investment costs, or deductible expenses for corporate income tax.
Therefore, for businesses paying VAT under the deduction method, input VAT that is creditable or refundable does not form part of the project's settled investment capital costs under Decree No. 193/2026/ND-CP.
Guidance on Form 01/QTDA
The Ministry noted that Form 01/QTDA attached to Decree 193/2026/ND-CP has no separate line item to reflect the amount of creditable VAT. Therefore, when preparing the settlement report, the project owner must determine the proposed settled investment capital value under Decree 193/2026/ND-CP such that it excludes the portion of input VAT that is creditable or refundable under tax law.
Practical implications for businesses
- Project owners and project accountants must manually exclude creditable or refundable VAT from the settlement value when completing Form 01/QTDA, even though the form has no dedicated line for it.
- The principle applies uniformly to both construction costs and construction consultancy costs, even though these costs are initially recorded inclusive of VAT under Decree 206/2026/ND-CP.
- This is an official interpretive response applying existing law (Decree 193/2026/ND-CP, Decree 206/2026/ND-CP, VAT Law 48/2024/QH15, CIT Law 67/2025/QH15, Circular 99/2025/TT-BTC), not a new legislative document.