VI All cases of input VAT deduction in 2026 and the mandatory conditions for input VAT deduction are specifically stipulated in Article 14 of the Value Added Tax Law 2024. Let’s explore more with Pham Consult!
All cases of input VAT deduction in 2026 that businesses need to know?
All cases of input VAT deduction in 2026 that businesses need to know are stipulated in Clause 1, Article 14 of the Value Added Tax Law 2024 as follows:
Businesses paying value added tax using the tax deduction method are entitled to deduct input value added tax as follows:
– Input value added tax on goods and services used for the production and business of goods and services subject to value added tax is fully deductible, including uncompensated input value added tax on goods and services subject to value added tax that are lost or naturally damaged due to their physical and chemical properties during transportation;
– Input value added tax on goods and services used simultaneously for the production and business of goods and services subject to tax and those not subject to tax is only deductible for the input value added tax on goods and services used for the production and business of goods and services subject to value added tax. Businesses must separately account for deductible and non-deductible input value-added tax (VAT); if separate accounting is not possible, the deductible input VAT is calculated as a percentage of the revenue from VAT-taxable goods and services compared to the total revenue from goods and services sold;
– Input VAT on goods and services sold to organizations and individuals using humanitarian aid and non-refundable aid funds is fully deductible;
– Input VAT on goods and services used for oil and gas exploration and development activities is fully deductible;
– Input VAT incurred in a given month or quarter is declared and deducted when determining the tax payable for that month or quarter. Any input VAT not fully deducted in a given month or quarter may be deducted in the following month or quarter.
In cases where a business discovers errors or omissions in the declared and deducted input value-added tax, it may file a tax return before the tax authority or competent authority announces a tax audit or inspection decision as follows:
The taxpayer shall file a supplementary tax return in the month or quarter in which the error or omission in the input value-added tax arises if the filing in that month or quarter results in an increase in the tax payable or a decrease in the tax refund; the taxpayer must pay the full amount of the additional tax payable or have the corresponding refunded tax recovered and pay late payment penalties to the state budget (if any).
The taxpayer shall file a tax return in the month or quarter in which the error or omission is discovered if the filing in that month or quarter results in a decrease in the tax payable or only increases or decreases the amount of deductible input value-added tax carried over to the following month or quarter;
– For non-deductible input value-added tax (VAT), businesses may include it in expenses for calculating corporate income tax or in the original cost of fixed assets as stipulated by the law on corporate income tax, except for VAT on purchased goods and services without non-cash payment documentation as prescribed by the Government;
– The Government shall specify the details of input VAT deduction for: goods and services that form fixed assets for employees; cases of capital contribution in the form of assets; goods and services purchased under authorization to other organizations or individuals where the invoice bears the name of the authorized organization or individual; fixed assets that are passenger cars with 9 seats or fewer; and production and business establishments with closed-loop production and centralized accounting.
What are the mandatory conditions for deducting input VAT?
According to Clause 2, Article 14 of the Value Added Tax Law 2024, the mandatory conditions for deducting input VAT include:
– Having a value added tax invoice for the purchase of goods and services, or a document proving payment of value added tax at the import stage, or a document proving payment of value added tax on behalf of a foreign party as stipulated in Clauses 3 and 4, Article 4 of this Law. The Minister of Finance shall prescribe the documents proving payment of value added tax on behalf of a foreign party;
– Having non-cash payment documents for purchased goods and services, except for certain specific cases as prescribed by the Government
– For exported goods and services, in addition to the conditions stipulated in points a and b of this clause, the following must also be provided: a contract signed with a foreign party for the sale or processing of goods or provision of services; sales invoices for goods or services; non-cash payment documents; customs declarations for exported goods; packing slips, bills of lading, and goods insurance documents (if any). The Government shall regulate the conditions for deduction in the case of exporting goods through e-commerce platforms abroad and some other specific cases.
What are the principles for determining the value-added tax (VAT) calculation price?
According to Article 14 of Decree 181/2025/ND-CP, the VAT calculation price for various types of goods and services is regulated as follows:
+ Includes surcharges and additional fees collected in addition to the price of goods and services that the business receives.
+ Excluding income unrelated to the sale of goods or provision of services by the business: income from monetary compensation (including compensation for land and assets on land when land is reclaimed by a decision of a competent state agency), bonuses, third-party claims from insurance activities, collection fees, fees from state agencies for performing collection and disbursement activities on behalf of state agencies, and financial income.
– In cases where the business applies a trade discount for customers (if any), the taxable value for value-added tax is the selling price after the trade discount, excluding value-added tax.
– In cases where the business has already calculated value-added tax but the taxable price is changed according to the conclusion of a competent state agency in accordance with relevant laws, the taxable price will be determined according to the conclusion of the competent state agency.
