VAT Deductibility and CIT Expense Conditions When a Logistics Company Pays Import Costs on Behalf of Another
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The Ho Chi Minh City Tax Department provides guidance on non-cash payment requirements for VAT input deductibility and CIT deductible expenses under the current legal framework. Under Article 14 of the Law on VAT 2024 and Article 26 of Decree 181/2025/ND-CP, purchases of goods and services worth VND 5 million or more (including imported goods) must be supported by non-cash payment instruments for input VAT to be deductible. Similarly, under Article 9 of the Law on Corporate Income Tax 2025 and Article 9 of Decree 320/2025/ND-CP, expenses on goods and services of VND 5 million or more must be supported by non-cash payment proof to qualify as deductible CIT expenses. Where a logistics company pays customs and transport fees of VND 5 million or more on behalf of the importer, and the importer does not comply with non-cash payment requirements, those expenses risk being disallowed for CIT purposes and the corresponding input VAT may not be deductible. The Tax Department advises businesses to study and comply with Article 14 of the VAT Law, Article 9 of the CIT Law, and their implementing regulations.
Question
An importing company hires a logistics company to provide customs clearance services. The logistics company pays customs and transport fees on behalf of the importer and issues VAT invoices in the importer's name. The parties then settle accounts and the importer pays the total amount (service fee plus advance payments) to the logistics company by bank transfer. The question is: does this arrangement satisfy the non-cash payment conditions for VAT input deduction and CIT deductible expenses, and which regulations apply?
Official guidance
The Ho Chi Minh City Tax Department bases its guidance on the following regulations:
1. VAT:
Under Article 14 of the Law on Value Added Tax 2024: conditions for input VAT deduction include having a valid VAT invoice and non-cash payment proof for goods and services purchased, except in specific cases stipulated by the Government.
Under Article 26 of Decree 181/2025/ND-CP dated 01/07/2025 detailing the implementation of the VAT Law: businesses must have non-cash payment proof for goods and services purchased (including imported goods) worth VND 5 million or more inclusive of VAT. Non-cash payment instruments are governed by Decree 52/2024/ND-CP dated 15 May 2024 on non-cash payments. Article 26 also covers special cases such as payment by debt offset, and purchases paid via third parties (including advance payments on behalf of the buyer) - these require a reconciliation record signed by all parties and evidence of the third party's bank transfer.
2. CIT:
Under Article 9 of the Law on Corporate Income Tax 2025: deductible expenses must meet conditions including non-cash payment proof for purchases of goods, services, and other payments as stipulated by the Government.
Under Article 9 of Decree 320/2025/ND-CP dated 15/12/2025 detailing the CIT Law: expenses must be supported by valid invoices and non-cash payment proof for purchases of goods, services, and other individual payments with a value of VND 5 million or more.
Conclusion by HCM City Tax Department: For expenses actually incurred in business operations, the deductibility of input VAT and CIT expenses requires compliance with Article 14 of the VAT Law, Article 9 of the CIT Law, and their implementing regulations.
Action points
- Review logistics contracts: where the logistics company pays expenses of VND 5 million or more on the importer's behalf, consider requesting a written reconciliation/confirmation record from all parties plus the logistics company's bank transfer evidence - this is required under the third-party payment exception in Article 26 of Decree 181/2025.
- Ensure all payments to the logistics company are made by bank transfer (non-cash) covering the full invoice amount including advance payments.
- Refer to the detailed rules in Article 26 of Decree 181/2025/ND-CP and Article 9 of Decree 320/2025/ND-CP to confirm which scenario applies.