📌 Late Payment — Can You Re-Claim Input VAT Deduction?
Effective 01/07/2025 (per Decree 181/2025/ND-CP): if a business misses the contractual payment deadline, it loses the right to deduct input VAT for that purchase and cannot claim it back later.
1) New Rules from 01/07/2025
- For deferred/installment purchases of ≥ VND 5 million, input VAT is deductible only when you have:
- ✅ A written sales contract;
- ✅ A valid VAT invoice;
- ✅ Non-cash payment evidence (bank transfer, netting of payables, etc.).
- Before the contractual due date → the business may temporarily deduct input VAT.
- At the due date without non-cash payment evidence → the business must adjust and reduce the previously deducted input VAT.
2) The Shocking Catch
❌ After you have adjusted and reduced the input VAT at the due date, even if you pay later with valid evidence, you still:
cannot re-deduct that input VAT.
cannot re-deduct that input VAT.
In short: a late payment permanently forfeits the right to deduct the input VAT you initially claimed.
3) Practical Example
Company A purchases equipment worth VND 2,000,000,000 + VND 200,000,000 VAT.
- Contractual payment due date: 30/09/2025.
- No transfer made by the due date → must reverse the VND 200,000,000 input VAT.
- Payment finally made via bank in Nov 2025 → still no right to re-deduct that VND 200,000,000.
Result: the company loses the deduction and overall tax cost increases.
4) What Should Businesses Do?
- ✅ Rigorously track due dates per contract/appendix.
- ✅ Monitor payables & VAT with software; enable pre-due alerts.
- ✅ Prioritize on-time bank transfers to preserve the deduction.
- ✅ When negotiating deferred terms, set realistic timelines to avoid “trapped” VAT.
5) Key Takeaways
From 01/07/2025:
- 🔎 On-time payment = you keep the input VAT deduction.
- 🔎 Late payment = you permanently lose the deduction (no re-claim later).
👉 Review all deferred-payment contracts now to prevent VAT leakage caused by missed deadlines.
Advisory & Support
📞 MBA Audit Firm can help you:
- Review payables and tax clauses in contracts,
- Design an input-VAT control system,
- Mitigate risks under Decree 181/2025/ND-CP.
✨ MBA Audit Firm – Trust. Integrity. Professionalism.
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